CSM Performance Management & Metrics 3

Question 1

What distinguishes a strategic KPI from an operational KPI?

Accepted Answer

Strategic KPIs align with long-term organizational goals; operational KPIs track day-to-day efficiency

Answer

Strategic KPIs focus on long-term outcomes aligned with organizational mission, while operational KPIs monitor the efficiency of ongoing processes.

Question 2

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:

Accepted Answer

Efficiency

Answer

Reducing cycle time for the same output represents improved efficiency — producing results with less time and resource consumption.

Question 3

Which of the following is a characteristic of a 'vanity metric'?

Accepted Answer

It looks impressive but does not drive actionable business decisions

Answer

Vanity metrics appear favorable on paper (e.g., total page views) but don't provide actionable insights or link to business value.

Question 4

When using a Balanced Scorecard, the 'Learning and Growth' perspective primarily measures:

Accepted Answer

Employee capabilities, technology, and organizational culture that enable strategy

Answer

The Learning and Growth perspective evaluates the foundational intangible assets — human capital, systems, and culture — needed to execute strategy.

Question 5

A manager sets individual performance targets without aligning them to departmental or organizational goals. What risk does this create?

Accepted Answer

Goal displacement, where individual success diverges from organizational strategy

Answer

Goal displacement occurs when achieving individual targets conflicts with or diverts effort away from broader organizational strategic priorities.

(CSM) Certified Strategic Manager Practice Test

(CSM) Certified Strategic Manager Practice Test

CSM Performance Management & Metrics 3