Question 1

An organization's strategic objectives and key metrics should serve as ________ drivers for the allocation of an organization's tangible and intangible assets.
A) bottom-up
B) top-down
C) company wide
D) revenues

Accepted Answer

The term "strategic objectives" implies a top-down approach, as these objectives are typically developed by top management and cascade down throughout the organization. Key metrics are also typically set at the strategic level and used to measure progress towards achieving those objectives. Therefore, a top-down approach is the best choice for driving the allocation of an organization's assets.

Question 2

Saxon Group's benchmarking results indicate that best practice organizations:
A) focus on competition instead of on cause-and-effect relationships between tactics and objectives.
B) develop better predictions or plans.
C) are far better equipped to quickly identify changes or problems, diagnose the root causes, and take corrective action.
D) are historic and internally focused.

Accepted Answer

The benchmarking results suggest that best practice organizations are better equipped to quickly identify changes or problems, diagnose the root causes, and take corrective action. This implies that they have a strong focus on cause-and-effect relationships between tactics and objectives, as opposed to just focusing on competition or being historic and internally focused. They also develop better predictions or plans, but this is not the main focus of the benchmarking results.

Question 3

What was the most important service provided by Harrah's Total Rewards program?
A) It provided Harrah's with a vast collection of high volume, real-time transaction data about its customers and their behaviors.
B) The program served to reward customers with cash for their gaming.
C) The program served to reward customers with comps for their gaming.
D) Opulent accommodations and surroundings for loyal customers.

Accepted Answer

The most important service provided by Harrah's Total Rewards program was the vast collection of high volume, real-time transaction data about its customers and their behaviors. This data allowed Harrah's to personalize its marketing campaigns, improve customer satisfaction, and increase revenue.

Question 4

Which of the following is the best-known and most widely used performance management system?
A) Dashboard
B) Performance reengineering
C) Balanced scorecard (BSC)
D) Total quality management

Accepted Answer

The balanced scorecard (BSC) is the best-known and most widely used performance management system. It is a strategic planning and management tool that helps organizations to align their goals, objectives, and strategic initiatives with their vision and mission. The BSC framework provides a comprehensive and integrated view of an organization's performance by measuring its financial, customer, internal processes, and learning and growth perspectives. This helps organizations to identify their strengths and weaknesses and take timely corrective actions to improve their performance.

Question 5

A ________ delineates the process of value creation through a series of cause-and-effect relationships among the key organizational objectives for all four BSC perspectives--financial, customer, process, and learning and growth.
A) balanced scorecard
B) strategic theme
C) strategy map
D) KPI

Accepted Answer

A strategy map is a visual representation of the key objectives, initiatives, and performance measures required to achieve an organization's strategy. It links the four perspectives of a balanced scorecard to provide a cause-and-effect model for value creation. A balanced scorecard (A) is a performance management tool that measures an organization's success or failure in relation to its strategic objectives. A strategic theme (B) is a high-level objective that aligns with an organization's overall strategy. KPI (D) stands for key performance indicators, which are metrics used to measure progress toward achieving specific objectives.

Question 6

Which of the following is not a part of a cybernetic system?
A) Inputs
B) Standard
C) Feedback channel
D) Diagnostic mechanism

Accepted Answer

The answer of Which of the following is not a...

Question 7

Which of the following is not what an effective performance measurement system should do?
A) Align top-level strategic objectives and bottom-level initiatives.
B) Identify opportunities in a timely fashion.
C) Determine priorities and allocate resources based on those priorities.
D) Maintain measurement when the underlying processes and strategies change.

Accepted Answer

An effective performance measurement system should be flexible and adaptable to changes in underlying processes and strategies. Hence, maintaining measurement when the underlying processes and strategies change is an important aspect of an effective performance measurement system. Therefore, option D is not what an effective performance measurement system should do. Options A, B, and C are important aspects of an effective performance measurement system as they help in aligning strategic objectives, identifying opportunities, determining priorities, and allocating resources based on those priorities.

Question 8

Sigma, σ, is a Greek alphabet letter used by statisticians to measure the ________ in a process.
A) variance
B) mean
C) inconsistency
D) variability

Accepted Answer

Sigma, σ, is used to represent the standard deviation, which is a measure of variability in a process. Therefore, the best choice is D) variability.

Question 9

Which of the following about Six Sigma is not true?
A) Six Sigma focuses on the elimination of waste activities, whereas lean focuses on reducing the variation or improving the consistency of a process.
B) Most companies use Six Sigma as a process improvement methodology that enables them to scrutinize their processes, pinpoint problems, and apply remedies.
C) Six Sigma is a performance management methodology aimed at reducing the number of defects in a business process to as close to zero DPMO as possible.
D) Six Sigma uses DMAIC, a closed-loop business improvement model that involves the steps of defining, measuring, analyzing, improving, and controlling a process.

Accepted Answer

This statement is not entirely true. While Six Sigma does focus on reducing variation or improving consistency of a process, it also places a significant emphasis on eliminating waste activities. Therefore, the statement that Six Sigma solely focuses on waste elimination is inaccurate.

Question 10

A(n) ________ plan translates an organization's strategic objectives and goals into a set of well-defined tactics and initiatives, resources requirements, and expected results for some future time period.
A) business
B) operational
C) tactical
D) strategic

Accepted Answer

The answer of A(n) ________ plan translates an organization's strategic...

Question 11

The term business performance management (BPM) encompasses three key components, which include all of the following except:
A) a set of integrated, closed-loop management and analytic processes, supported by technology, that address financial as well as operational activities
B) an enterprise-wide strategy that helps to optimize local business performance
C) tools for businesses to define strategic goals and then measure and manage performance against those goals
D) a core set of processes, including financial and operational planning, modeling, analysis, and monitoring of key performance indicators (KPIs), linked to organizational strategy

Accepted Answer

The three key components of business performance management are A, C, and D. Option B is not one of the key components of BPM.

Question 12

An effective diagnostic control system encourages ________.
A) management by exception
B) strict rules
C) democratic rules
D) elite rules

Accepted Answer

An effective diagnostic control system encourages management by exception, which means only the significant deviations from the expected performance are reported to management. This saves time and allows management to focus on critical areas that require attention. Strict, democratic, or elite rules are not necessarily encouraged by a diagnostic control system.

Question 13

Logically speaking, a BPM system consists of three basic parts, or layers. Which of the following is not one of those parts or layers?
A) BPM applications
B) Dashboards and scorecards
C) Information hub
D) Source systems

Accepted Answer

The answer of Logically speaking, a BPM system consists of...

Question 14

Characteristics of all well-designed dashboards and scorecards include all of the following except:
A) they present a static, real-world view of the data
B) they use visual components to highlight, at a glance, the data and exceptions that require action
C) they are transparent to the user and extremely easy to use
D) they enable drill-down or drill-through to underlying data sources or reports

Accepted Answer

Well-designed dashboards and scorecards do not present a static, real-world view of the data as they are meant to provide dynamic and interactive presentations of data.

Question 15

Best practice organizations tend to utilize ________ operational planning, which begins the operational planning process by defining the alternative tactics and initiatives that can be used to reach a particular target.
A) tactic-centric
B) budget-centric
C) cost-centric
D) revenue-centric

Accepted Answer

Tactic-centric operational planning focuses on defining alternative tactics and initiatives to reach a particular target. This approach allows for flexibility and innovation in achieving goals, rather than being limited by a strict budget or cost focus. Best practice organizations tend to use this approach to adapt to changing market conditions and stay ahead of competitors.

Question 16

The effectiveness of a campaign is measured by ________.
A) net cost and productivity
B) relative profitability and net value
C) gross revenue and net income
D) cost and quality

Accepted Answer

The answer of The effectiveness of a campaign is measured...

Question 17

BSC translates an organization's vision and strategy into a set of interrelated financial and nonfinancial objectives. All of the following are nonfinancial objectives except:
A) business rules
B) customers
C) internal business process
D) learning and growth

Accepted Answer

The other three choices, customers, internal business process, and learning and growth, are all nonfinancial objectives commonly included in a BSC. Business rules, while important for operations and governance, are not typically included as objectives in a BSC.

Question 18

Fundamentally, an operational plan is like a project plan that is designed to ensure that an organization's ________ is realized.
A) business policy
B) plan
C) strategy
D) business rules

Accepted Answer

An operational plan is designed to ensure that an organization's strategy is realized. It provides detailed information on how the strategy will be implemented and the specific actions that will be taken to achieve the desired outcomes. Business policy, plan, and rules are all important components of an operational plan, but they are not the primary focus.

Question 19

BPM encompasses a core set of processes, including financial and ________ planning, consolidation and reporting, modeling, analysis, and monitoring of KPIs, linked to organizational strategy.
A) strategic
B) tactical
C) operational
D) daily

Accepted Answer

The answer of BPM encompasses a core set of processes,...

Question 20

BPM is an enterprise-wide strategy that seeks to prevent organizations from optimizing ________ business at the expense of overall corporate performance.
A) corporate wise
B) global
C) regional
D) local

Accepted Answer

BPM (Business Process Management) aims to prevent organizations from optimizing local business operations in a way that could negatively impact the overall performance of the entire corporation. This approach ensures that improvements in one area do not detrimentally affect others, maintaining a balance that benefits the organization as a whole.

Quiz 3: Business Performance Management

An organization's strategic objectives and key metrics should serve as ________ drivers for the allocation of an organization's tangible and intangible assets.

Saxon Group's benchmarking results indicate that best practice organizations:

What was the most important service provided by Harrah's Total Rewards program?

Which of the following is the best-known and most widely used performance management system?

A ________ delineates the process of value creation through a series of cause-and-effect relationships among the key organizational objectives for all four BSC perspectives--financial, customer, process, and learning and growth.

Which of the following is not a part of a cybernetic system?

Which of the following is not what an effective performance measurement system should do?

Sigma, σ, is a Greek alphabet letter used by statisticians to measure the ________ in a process.

Which of the following about Six Sigma is not true?

A(n) ________ plan translates an organization's strategic objectives and goals into a set of well-defined tactics and initiatives, resources requirements, and expected results for some future time period.

The term business performance management (BPM) encompasses three key components, which include all of the following except:

An effective diagnostic control system encourages ________.

Logically speaking, a BPM system consists of three basic parts, or layers. Which of the following is not one of those parts or layers?

Characteristics of all well-designed dashboards and scorecards include all of the following except:

Best practice organizations tend to utilize ________ operational planning, which begins the operational planning process by defining the alternative tactics and initiatives that can be used to reach a particular target.

The effectiveness of a campaign is measured by ________.

BSC translates an organization's vision and strategy into a set of interrelated financial and nonfinancial objectives. All of the following are nonfinancial objectives except:

Fundamentally, an operational plan is like a project plan that is designed to ensure that an organization's ________ is realized.

BPM encompasses a core set of processes, including financial and ________ planning, consolidation and reporting, modeling, analysis, and monitoring of KPIs, linked to organizational strategy.

BPM is an enterprise-wide strategy that seeks to prevent organizations from optimizing ________ business at the expense of overall corporate performance.