CMM Strategic Planning & Performance Management 2 — Questions and Answers
Question 1: A city manager implements a system where department heads receive quarterly reports showing actual performance against established targets. This management approach is known as:
- Management by exception
- Performance-based management (Correct answer)
- Zero-based budgeting
- Continuous quality improvement
Correct answer: Performance-based management
Performance-based management ties decision-making, accountability, and resource allocation to measured outcomes, with regular reviews of actual versus target performance.
Question 2: Which federal act requires state and local governments to measure performance and report outcomes as a condition of receiving certain federal grants?
- Government Performance and Results Act (GPRA) (Correct answer)
- Single Audit Act
- Chief Financial Officers Act
- American Recovery and Reinvestment Act
Correct answer: Government Performance and Results Act (GPRA)
The Government Performance and Results Act (GPRA) of 1993 established performance planning and reporting requirements for federal programs, influencing how grantees must also track outcomes.
Question 3: A 'logic model' in program planning illustrates the relationship between:
- Budget allocations and department staffing levels
- Inputs, activities, outputs, and outcomes (Correct answer)
- Elected officials and administrative staff roles
- Tax rates and service fee schedules
Correct answer: Inputs, activities, outputs, and outcomes
A logic model graphically maps how a program's inputs (resources) lead to activities, which produce outputs, which in turn lead to intended outcomes.
Question 4: When a municipality conducts a 'citizen satisfaction survey,' it is primarily collecting which type of performance data?
- Efficiency data
- Customer/quality data (Correct answer)
- Workload data
- Cost-effectiveness data
Correct answer: Customer/quality data
Citizen satisfaction surveys capture customer or quality data — perceptions of service quality, responsiveness, and overall satisfaction from the public's viewpoint.
Question 5: In performance management, a 'leading indicator' differs from a 'lagging indicator' because it:
- Measures results after a program has ended
- Predicts future performance before outcomes are final (Correct answer)
- Counts the total volume of services provided
- Compares current performance to prior year results
Correct answer: Predicts future performance before outcomes are final
Leading indicators predict future performance or outcomes (e.g., pothole repair response time predicts infrastructure condition), while lagging indicators measure results after the fact.
Question 6: Which approach to budgeting requires each department to justify every expenditure from a zero base each year, rather than using the prior year's budget as a starting point?
- Incremental budgeting
- Zero-based budgeting (Correct answer)
- Program budgeting
- Capital budgeting
Correct answer: Zero-based budgeting
Zero-based budgeting (ZBB) requires departments to justify all expenditures from scratch each budget cycle, rather than automatically rolling forward prior-year funding levels.
Question 7: A city manager uses a 'dashboard' to present key performance indicators to the city council. What is the PRIMARY advantage of this reporting format?
- It eliminates the need for departmental reports
- It provides a visual summary of critical metrics at a glance (Correct answer)
- It replaces the annual audit process
- It allows the public to set performance targets
Correct answer: It provides a visual summary of critical metrics at a glance
A performance dashboard provides decision-makers with a concise visual summary of key metrics, enabling quick identification of trends, achievements, and problem areas without reading lengthy reports.
CMM Strategic Planning & Performance Management 2
A city manager implements a system where department heads receive quarterly reports showing actual performance against established targets.
This management approach is known as: