CLM CLM Goal Setting & Performance Measurement 2 — Questions and Answers
Question 1: The Balanced Scorecard, developed by Kaplan and Norton, measures organizational performance across which four perspectives?
- People, Process, Technology, Finance
- Financial, Customer, Internal Processes, Learning & Growth (Correct answer)
- Strategy, Operations, Culture, Innovation
- Revenue, Costs, Efficiency, Satisfaction
Correct answer: Financial, Customer, Internal Processes, Learning & Growth
Kaplan and Norton's Balanced Scorecard measures performance across Financial, Customer, Internal Business Processes, and Learning & Growth perspectives.
Question 2: When a CLM mentor helps a leader conduct a performance review conversation, which approach is most effective for maintaining employee motivation?
- Focus the review entirely on weaknesses and improvement areas
- Balance recognition of strengths with constructive development feedback, focusing on behaviors rather than personality (Correct answer)
- Avoid discussing weaknesses to maintain a positive relationship
- Deliver all feedback in written form to avoid emotional reactions
Correct answer: Balance recognition of strengths with constructive development feedback, focusing on behaviors rather than personality
Effective performance reviews balance recognition of strengths with specific, behavioral development feedback to motivate growth without damaging relationships.
Question 3: A leader sets quarterly goals but rarely reviews them with the team. As a CLM mentor, what would you recommend?
- Replace quarterly goals with annual goals to reduce review frequency
- Implement regular check-ins (weekly or biweekly) to track progress, remove obstacles, and adjust goals as needed (Correct answer)
- Allow employees to self-manage goal progress without leader involvement
- Set fewer goals so reviews are less time-consuming
Correct answer: Implement regular check-ins (weekly or biweekly) to track progress, remove obstacles, and adjust goals as needed
Regular check-ins ensure goals remain relevant, obstacles are removed promptly, and progress is acknowledged—critical factors in goal achievement.
Question 4: In performance management, what is the primary purpose of a 'developmental goal' as distinct from a 'performance goal'?
- Developmental goals measure current job output; performance goals focus on future capabilities
- Developmental goals focus on building future skills and capabilities; performance goals focus on current job expectations (Correct answer)
- Developmental goals are set by employees only; performance goals are set by managers only
- Developmental goals replace performance goals in high-performing teams
Correct answer: Developmental goals focus on building future skills and capabilities; performance goals focus on current job expectations
Developmental goals focus on building capabilities for future roles or growth, while performance goals address current role expectations and deliverables.
Question 5: A CLM mentor is coaching a leader on giving performance feedback. The SBI (Situation-Behavior-Impact) model is recommended because it:
- Allows leaders to give feedback anonymously without attribution
- Structures feedback around specific observable behaviors and their impact, reducing defensiveness (Correct answer)
- Focuses on the employee's attitude and mindset rather than actions
- Replaces the need for formal performance reviews
Correct answer: Structures feedback around specific observable behaviors and their impact, reducing defensiveness
The SBI model (Situation, Behavior, Impact) grounds feedback in specific observations and consequences, making it objective and actionable rather than personal.
Question 6: Which CLM principle best describes why goal alignment between individual, team, and organizational objectives is critical?
- It reduces the number of goals employees must track
- It ensures individual efforts contribute to shared organizational outcomes, driving coherence and reducing conflicting priorities (Correct answer)
- It eliminates the need for performance reviews
- It allows managers to monitor employee activity more closely
Correct answer: It ensures individual efforts contribute to shared organizational outcomes, driving coherence and reducing conflicting priorities
Goal alignment ensures that individual and team efforts are strategically coherent, avoiding wasted effort on activities that don't advance organizational priorities.
The Balanced Scorecard, developed by Kaplan and Norton, measures organizational performance across which four perspectives?