CBC Performance Metrics 2

Question 1

A business coach wants to measure whether a client's team is improving output relative to hours worked. Which metric is most appropriate?

Accepted Answer

Labor productivity ratio

Answer

Labor productivity compares output produced to labor hours invested, directly measuring efficiency gains.

Question 2

Which characteristic distinguishes a leading indicator from a lagging indicator in coaching engagements?

Accepted Answer

It predicts future performance rather than confirming past results

Answer

Leading indicators forecast future outcomes, while lagging indicators confirm what has already happened.

Question 3

A client's sales rose 20% but net profit fell. Which metric should the coach examine first to diagnose the disconnect?

Accepted Answer

Operating expense ratio

Answer

Rising costs relative to revenue, shown by the operating expense ratio, commonly erode profit despite sales growth.

Question 4

In the SMART framework for goal setting, what does the 'M' require of a performance goal?

Accepted Answer

It must be measurable with quantifiable criteria

Answer

The 'M' in SMART stands for Measurable, requiring quantifiable criteria to track progress.

Question 5

A coaching client tracks 45 different KPIs and feels overwhelmed. What is the best coaching recommendation?

Accepted Answer

Prioritize a small set of critical KPIs aligned to strategic goals

Answer

Effective performance management focuses on a limited number of KPIs directly tied to strategic objectives.

(CBC) Certified Business Coach Practice Test