C207 WGU - Section 6 Improving Organizational Performance
A company is trying to determine their net promoter score. If their net promoter score is lower than the industry average, they will begin an initiative to improve customer satisfaction. The industry average net promoter score is 12 percent. 200 people respond to a survey of whether they would recommend the company to a friend. On a scale from 0 to 10, 40 people answered between 0 and 6, 105 people answered with either a 7 or 8, and 55 people answered with either a 9 or 10. What is the company's net promoter score?
7.5 (The net promoter score is the promoters minus the detractors)
Which two examples exhibit appropriate use of performance measures in business? *
A hospital measure Emergency Room response time for improvement and Nonprofit tracks expenses to increase efficiency
What is a balanced scorecard?
A management tool that measures key performance indicators across four key organization areas
What is a disadvantage of a using net promoter score in an organization?
A net promoter score system does not determine the area of dissatisfaction. (A net promoter score does not determine the area of customer dissatisfaction.)
For a balanced scorecard, about how many performance measures should be included?
A number limited to the most crucial measures
An Organization seeks to shift its business strategy to development of new products for the future while still growing sales of its current products. Which tool could help the company focus on both its financial objective and growth of new products?
Balanced Scorecard
Which of the following is NOT one of the four main perspectives examined by the balanced scorecard?
Branding
What are two advantages of Key Performance Indicators (KPI)?
Educate management on company performance and Data-driven results make it easier to quantify performance
Company A predicts 45 customer visits for the week and actually gets 50 customer visits for the week. Company B predicts a 5 percent decrease in customer visits and gets an actual decrease of 3 percent in customer visits. Is the variance for company A favorable or unfavorable? Is the variance for company B favorable or unfavorable?
Favorable, Favorable
A rural town seeks to deploy a new citizen relationship program within its Fire and EMT department. How could the citizen relationship program help the town service citizen's emergencies?
It could reduce response times
Which of the following is a disadvantage of key performance indicators (KPIs)?
KPIs are often only a rough guide.
Which of the following is an advantage of key performance indicators (KPIs)?
KPIs can be used as a tool across an entire organization.
A Pizza Chain wishes to improve sales by focusing on product quality, reducing delivery time and improving productivity. Which tool would best meet the Chain's objective of quantifying their improvement in product quality only?
Key Performance Indicator
A retail chain seeks to improve store performance by growing sales and improving customer service. Which tool would specifically meet the chain's objective of improving store sales growth?
Key performance indicator
A Manufacturer needs to closely manage product cost to maintain profit margins in a highly competitive market. Which two key performance indicators should management use to control product cost?
Measure employee productivity and Measure production waste
An Online retailer seeks to improve its Amazon customer services rating. What two key performance indicators should the retailer measure?
Measure on time delivery and Measure customer return rate
What is an advantage of a net promoter score system of measurement?
NPS is easy to calculate and understand.
A retailer wants to evaluate the strength of its customer relations to see how the company compares to others in the industry. Which analysis technique could help the retailer with this decision?
Net Promoter Score
Which of the following could NOT be an appropriate key performance indicator (KPI)?
New company goals
A net promoter score is determined from results, on a scale from 0 to 10, of a question about the customer's opinion of the company. What are the categories used in NPS?
Promoters, Passives, and Detractors
What are two disadvantages of a Balanced Scorecard?
Sometimes difficult to maintain momentum and May not encourage desired behavior changes
A Net Promoter Score seeks to quantify which of the following?
Strength of customer relations
If a company has a positive variance against its target for a performance measure, what does that mean?
The company exceeded its target performance goal. (Variance=actual performance−target performance)
A balanced scorecard usually has a list of objectives. In each objective, a variance is shown. What is the meaning of variance when used on a balanced scorecard?
The difference between the target performance and the real performance
nonprofit management should find a way to measure its success in:
The employee effectiveness The progress on its goals The success of mobilizing its resources
1. A manufacturer of running shoes is implementing lean operation concepts into their production process. Which critical success factor would assure a smooth transition into the new program?
Understand customer needs and wants
Which statements indicate when it is appropriate to use a KPI Dashboard?
When more than a single chart, graph or piece of data are integral to making business decisions. and When visual representation is needed to see if an organization is meeting the goals
Business Process
a series of steps that are followed in order to carry out some task in a business
Net Promoter Score (NPS)
an indirect word-of-mouth measure of true attitudinal loyalty
Which of the following could be an appropriate key performance indicator (KPI)?
consumer return rate
The goals a company must reach in order to consider itself successful are called?
critical success factors
Critical Success Factors (CSFs)
crucial steps companies perform to achieve their goals and objectives and implement their strategies (quality, customer service, efficiency)
Performance measures are used to evaluate the _______ of an individual or group by using data collection and _________.
efficiency, analytics
Performance measures are used to _______ the efficiency of an individual or group by using _________ and analytics.
evaluate, data collection
Operating Income
gross profit - operating expenses
strategic plan
identifies long-term directions for the organization
strategy map
visual representation of the four perspectives of the balanced scorecard that enables managers to communicate their goals so that everyone in the company can understand how their jobs are linked to the overall objectives of the organization
A company predicts 300 people to make purchases this year on Black Friday. The total number is actually 282. What is the variance? And is it favorable or unfavorable?
18, unfavorable (The variance is the actual performance minus the target performance)
Key performance indicators (KPIs)
The quantifiable metrics a company uses to evaluate progress toward critical success factors (is expensive, and can be used across the entire organization)
Which one of the following is a disadvantage of balanced scorecards
They do not involve a relatively easy process to develop a meaningful scorecard.
A company has a survey process for determining its net promoter score. 50 people responded to the survey with an answer between 6 and 10? How does NPS classify this group?
This is not a defined group. (Survey respondents who answer between 0 and 6 are detractors. Survey respondents who answer either 7 or 8 are passives. Survey respondents who answer either 9 or 10 are promoters.)
Who is most likely to use a company's KPI performance dashboard?
management
Balanced Scorecard
measurement of organizational performance in four equally important areas: finances, customers, internal operations, and innovation and learning
Economic Value Added (EVA)
the amount by which company profits (revenues, minus expenses, minus taxes) exceed the cost of capital in a given year
variance (as applied to Balanced Scorecards)
the difference between the target performance and he actual performance. A calculated variance will explain if you have failed to meet expectations or if you have exceeded expectations.
customer satisfaction
the extent to which a product's perceived performance matches a buyer's expectations