CBC Performance Measurement & KPIs 3

Question 1

Which perspective is NOT one of the four in Kaplan and Norton's Balanced Scorecard?

Accepted Answer

Competitor benchmarking

Answer

The Balanced Scorecard uses financial, customer, internal process, and learning and growth perspectives, not competitor benchmarking.

Question 2

A client sets a KPI target of "increase repeat purchase rate from 18% to 25% within six months." Which SMART element is most clearly demonstrated?

Accepted Answer

Time-bound specificity with a measurable target

Answer

The target states a precise metric, values, and deadline, satisfying the specific, measurable, and time-bound criteria.

Question 3

During a quarterly review, a coach helps a client compare KPI results against industry averages. This practice is called what?

Accepted Answer

Benchmarking

Answer

Benchmarking compares an organization's performance metrics against industry standards or peers.

Question 4

A service business wants one KPI that captures long-term customer relationship value. Which is most appropriate?

Accepted Answer

Customer lifetime value (CLV)

Answer

CLV estimates total revenue a customer generates over the entire relationship, capturing long-term value.

Question 5

A coach's client reviews KPIs only once a year. What is the main risk of this cadence?

Accepted Answer

Problems are detected too late to make timely corrective adjustments

Answer

Infrequent KPI review delays detection of negative trends, preventing timely course correction.

(CBC) Certified Business Coach Practice Test