C207 - Module 6

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

Which two examples exhibit appropriate use of performance measures in business?

A hospital measure Emergency Room response time for improvement Nonprofit analyze expenses to increase the percent of funds donated NOT A Women's retail shop reviews color trends for the next fall season A school reviews number of extra-curricular activities available to students

What is a balanced scorecard?

A management tool that measures key performance indicators across all areas of an organization

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. ADVANTAGE: A net promoter score holds employees accountable for their treatment of customers.

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 ARE: Innovation and Growth Financials Internal Business Processes

A Net Promoter Score seeks to quantify which of the following?

Customer satisfaction

What are advantages of Key Performance Indicators (KPI)?

Educate management on company performance (internal bench marking) Data-driven results make it easier to quantify performance Can be used to track financial, productivity, etc. goals

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

What does KPI stand for?

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 specifically 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 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 Measure customer return rate

What is an advantage of a net promoter score system of measurement?

NPS holds employees accountable for their treatment of customers.

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 (not quantifiable) ARE QUANTIFIABLE: Fatality rate in pregnant woman Average time spent in stores Employees' amounts of sleep

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 disadvantages of a Balanced Scorecard?

Sometimes difficult to maintain momentum May not encourage desired behavior changes Requires time and effort Challenges with adoption across the company

A company process flows in the following order: Vision, Mission, Goals, _______, Tactics, and Action plans.

Strategies

According to McKinsey & Company, which one of the following is NOT an area of performance measurement that needs to be focused on in nonprofit management?

The ability to raise awareness ARE AREAS: The employee effectiveness The progress on its goals The success of mobilizing its resources

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.

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

Which one of the following is a disadvantage of balanced scorecards?

They do not illustrate a full picture of the company performance. ADVANTAGES: They do not improve organization alignment. They fail to link a company's operations with its strategy.

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.

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 two 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. When visual representation is needed to see if an organization is meeting the goals

The goals a company must reach in order to consider itself successful are called?

critical success factors - they could include such measures as quality, customer service, and 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

Who is most likely to use a company's KPI performance dashboard?

management

Which of the following could be an appropriate key performance indicator (KPI)?

return consumer rate