Performance Management & Metrics Flashcards
7 cards from real CSM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Performance Management & Metrics flashcards as text
What distinguishes a strategic KPI from an operational KPI?
Answer: Strategic KPIs align with long-term organizational goals; operational KPIs track day-to-day efficiency
Strategic KPIs focus on long-term outcomes aligned with organizational mission, while operational KPIs monitor the efficiency of ongoing processes.
A firm's cycle time for product development has decreased by 30%. In a performance management framework, this improvement is best categorized as a gain in:
Answer: Efficiency
Reducing cycle time for the same output represents improved efficiency — producing results with less time and resource consumption.
Which of the following is a characteristic of a 'vanity metric'?
Answer: It looks impressive but does not drive actionable business decisions
Vanity metrics appear favorable on paper (e.g., total page views) but don't provide actionable insights or link to business value.
When using a Balanced Scorecard, the 'Learning and Growth' perspective primarily measures:
Answer: Employee capabilities, technology, and organizational culture that enable strategy
The Learning and Growth perspective evaluates the foundational intangible assets — human capital, systems, and culture — needed to execute strategy.
A manager sets individual performance targets without aligning them to departmental or organizational goals. What risk does this create?
Answer: Goal displacement, where individual success diverges from organizational strategy
Goal displacement occurs when achieving individual targets conflicts with or diverts effort away from broader organizational strategic priorities.
Which performance metric would a CSM candidate most likely use to assess the long-term value of a customer relationship?
Answer: Customer Lifetime Value (CLV)
Customer Lifetime Value measures the total net profit a company expects to earn from a customer over the entire relationship duration.
In performance management, 'stretch goals' are best described as:
Answer: Highly ambitious targets designed to inspire breakthrough performance beyond normal expectations
Stretch goals are ambitious, challenging targets intended to push individuals and organizations beyond incremental improvement toward transformational results.