SPP Performance Measurement & Evaluation 5

Question 1

Which evaluation design provides the strongest evidence of causation when assessing a strategic initiative's impact?

Accepted Answer

Randomized controlled trial with a true control group

Answer

Randomized controlled trials provide the strongest causal evidence by randomly assigning participants to treatment and control groups, eliminating selection bias.

Question 2

A strategic planner identifies that a division's KPI scores improved dramatically after the measurement methodology was changed mid-year. This situation MOST likely represents:

Accepted Answer

A measurement artifact rather than real performance improvement

Answer

Mid-year methodology changes break time-series comparability and can produce apparent performance improvements that reflect measurement differences rather than real organizational gains.

Question 3

In performance management, 'management by exception' means:

Accepted Answer

Focusing leadership attention on metrics that deviate significantly from targets

Answer

Management by exception directs limited leadership bandwidth toward metrics that show significant variance from targets, preventing information overload from reviewing all indicators equally.

Question 4

An organization's strategic performance report shows high scores on 'customer acquisition' but declining scores on 'customer retention.' What strategic insight does this pattern suggest?

Accepted Answer

The value proposition may be failing to meet post-purchase expectations

Answer

High acquisition paired with low retention suggests the value proposition, product quality, or customer experience is not delivering on promises made during the sales process.

Question 5

The SMART criteria for setting performance targets require that targets be Specific, Measurable, Achievable, Relevant, and:

Accepted Answer

Time-bound

Answer

The 'T' in SMART stands for Time-bound, meaning every target must have a defined deadline or time horizon to create accountability and enable meaningful progress tracking.

(SPP) Strategic Planning Professional Practice Test

(SPP) Strategic Planning Professional Practice Test

SPP Performance Measurement & Evaluation 5