CS CS Performance Measurement & KPIs 2

Question 1

Benchmarking a KPI against industry peers serves what primary strategic purpose?

Accepted Answer

It provides external context to judge whether performance is genuinely competitive

Answer

External benchmarks reveal whether strong-looking internal performance is actually competitive, preventing complacency when absolute results look good but trail the industry.

Question 2

Objectives and Key Results (OKRs) differ from traditional KPIs in that OKRs:

Accepted Answer

Set ambitious qualitative objectives paired with measurable, time-bound results to drive stretch performance

Answer

OKRs intentionally set aspirational objectives (often only 60-70% achieved) to encourage bold thinking, whereas traditional KPIs typically aim for full achievement of realistic targets.

Question 3

A performance dashboard is most effective for strategy execution when it:

Accepted Answer

Shows a focused set of strategically relevant KPIs with trend context and exception highlighting

Answer

Effective dashboards surface the most critical performance signals with trend context, enabling rapid identification of deviations requiring management attention.

Question 4

Net Promoter Score (NPS) is a strategic customer KPI that measures:

Accepted Answer

The likelihood that customers will recommend the company to others, reflecting loyalty and growth potential

Answer

NPS asks a single recommendation question and segments customers into promoters, passives, and detractors, with the score predicting organic growth driven by word-of-mouth.

Question 5

Vanity metrics in performance management refer to:

Accepted Answer

Measures that look impressive but do not correlate with strategic success or decision-making

Answer

Vanity metrics — like raw page views or social media followers — can create a false impression of success without revealing whether the organization is achieving its strategic goals.

(CS) Certified Strategist Practice Test

(CS) Certified Strategist Practice Test

CS CS Performance Measurement & KPIs 2