CBC Performance Measurement & KPIs 2

Question 1

A business coach's client wants to track "customer satisfaction" but has no measurable target. What should the coach recommend first?

Accepted Answer

Convert the goal into a SMART metric such as a Net Promoter Score target

Answer

Vague goals must be translated into specific, measurable indicators like NPS before they can function as KPIs.

Question 2

Which of the following is a leading indicator for a sales team's quarterly revenue target?

Accepted Answer

Number of qualified discovery calls booked per week

Answer

Leading indicators, like discovery calls booked, predict future results, whereas revenue and churn report past outcomes.

Question 3

A client tracks 42 KPIs on a single dashboard and feels overwhelmed. What is the coach's best guidance?

Accepted Answer

Prioritize a small set of critical KPIs tied directly to strategic objectives

Answer

Effective performance measurement focuses on a limited number of KPIs aligned to strategy, avoiding metric overload.

Question 4

In a coaching engagement, what is the primary purpose of establishing a baseline measurement before an intervention?

Accepted Answer

To enable objective comparison of pre- and post-intervention performance

Answer

A baseline provides the reference point against which progress and coaching impact are objectively measured.

Question 5

A retail client's KPI dashboard shows conversion rate rising while average transaction value falls. How should the coach interpret this?

Accepted Answer

Examine the metrics together, since a trade-off between them may be occurring

Answer

KPIs must be analyzed in relation to each other because improving one metric can come at the expense of another.

(CBC) Certified Business Coach Practice Test