Change Management Business Revision 2 — Questions and Answers
Question 1: Which business revision strategy involves systematically eliminating non-value-adding activities from processes?
- Benchmarking
- Lean process redesign (Correct answer)
- Balanced scorecard
- SWOT analysis
Correct answer: Lean process redesign
Lean process redesign focuses on identifying and eliminating waste (non-value-adding steps) to improve efficiency.
Question 2: During a business revision, a company discovers its customer service response time is twice the industry average. This finding is best addressed using which approach?
- Downsizing
- Benchmarking-driven improvement (Correct answer)
- Mergers and acquisitions
- Dividend restructuring
Correct answer: Benchmarking-driven improvement
Benchmarking-driven improvement uses industry comparisons to set performance targets and close gaps.
Question 3: A business revision team wants to understand employee sentiment before restructuring. Which tool is most appropriate?
- Gantt chart
- Employee engagement survey (Correct answer)
- Network diagram
- Earned value analysis
Correct answer: Employee engagement survey
Employee engagement surveys capture workforce sentiment, concerns, and readiness for change prior to restructuring.
Question 4: When revising a business model, the 'value proposition' element refers to:
- The cost structure of the organization
- The unique benefit a company offers to its customers (Correct answer)
- The channels used for product delivery
- The revenue streams generated annually
Correct answer: The unique benefit a company offers to its customers
The value proposition defines the unique value a company promises to deliver to customers, distinguishing it from competitors.
Question 5: A company undergoing business revision reduces its number of management layers. This is known as:
- Diversification
- Delayering (Correct answer)
- Franchising
- Joint venturing
Correct answer: Delayering
Delayering removes middle management tiers to flatten the hierarchy, speed decision-making, and reduce costs.
Question 6: Which financial metric is most commonly used to evaluate the success of a business revision initiative?
- Gross margin percentage
- Return on investment (ROI) (Correct answer)
- Days sales outstanding
- Price-to-earnings ratio
Correct answer: Return on investment (ROI)
ROI measures the net benefit of a change initiative relative to its cost, making it the primary success metric.
Question 7: In a business revision scenario, 'quick wins' are important because they:
- Eliminate the need for long-term planning
- Build momentum and demonstrate early value of the change (Correct answer)
- Replace the need for stakeholder communication
- Guarantee full project success
Correct answer: Build momentum and demonstrate early value of the change
Quick wins provide visible early results that build confidence, sustain momentum, and justify continued investment in the change effort.
Change Management Business Revision 2
Which business revision strategy involves systematically eliminating non-value-adding activities from processes?