Performance Metrics Flashcards

A client wants to measure the health of their sales pipeline. Which pair of metrics is most relevant?

Answer: Conversion rate by stage and average sales cycle length

Stage conversion rates and sales cycle length reveal where deals stall and how fast revenue arrives.

What is the primary purpose of a performance dashboard in a coaching engagement?

Answer: To present key metrics visually for fast, informed decision-making

Dashboards consolidate key metrics into visual displays that speed up decision-making.

A client's employee turnover is 35% versus an industry norm of 15%. Which cost is the coach most justified in highlighting?

Answer: Recruitment, onboarding, and lost-productivity costs of replacement

High turnover drives replacement costs including hiring, training, and productivity loss during ramp-up.

Which statement about qualitative performance measures is accurate?

Answer: They capture factors like morale and culture that numbers alone miss

Qualitative measures reveal culture, morale, and engagement dimensions that quantitative metrics cannot fully express.

A coach reviews a client's break-even point. What does this metric tell the business owner?

Answer: The sales volume at which total revenue equals total costs

Break-even is the point where revenue covers all fixed and variable costs, producing zero profit or loss.

When cascading company goals to individual employees, what is the key requirement for individual metrics?

Answer: They must align with and support the organization's strategic objectives

Cascaded metrics only work when each individual's targets ladder up to organizational strategy.

A client's gross margin is 60% but the industry average is 40%. How should a coach interpret this?

Answer: The client has strong pricing power or cost efficiency worth protecting

Above-average gross margin signals a competitive advantage in pricing or cost structure that should be understood and defended.