Question 1

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 2

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.

Question 3

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

Business rules are not typically considered a nonfinancial objective in BSC methodology. The other three options (customers, internal business process, and learning and growth) are all commonly recognized as key areas of focus for nonfinancial objectives in BSC implementation.

Question 4

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 understand its customers better, personalize marketing efforts, and improve the overall customer experience.

Question 5

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 BPM are (1) a set of integrated, closed-loop management and analytic processes, (2) tools for defining strategic goals and measuring performance against those goals, and (3) a core set of processes linked to organizational strategy. Option B is not a component of BPM.

Question 6

Which of the following identifies and prioritizes the key customer,market,competitor,government,demographic,or actually impacting the company?
A) SWOT
B) SWAT
C) ROA
D) CSF

Accepted Answer

SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis is a framework used to identify and prioritize the internal and external factors that are favorable and unfavorable to achieving an objective, including key customer, market, competitor, government, and demographic aspects.

Question 7

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 indicate that best practice organizations are far better equipped to quickly identify changes or problems, diagnose the root causes, and take corrective action. This implies a focus on cause-and-effect relationships, rather than competition. They also likely develop better predictions or plans, but this is not the main focus of the given information. The benchmarking results are also likely focused on current practices and external factors, rather than historical or internal factors.

Question 8

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 9

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 three...

Question 10

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 true as it inaccurately describes the focus of Six Sigma and lean methodologies. Six Sigma does also aim to reduce variation and improve consistency, in addition to eliminating waste activities.

Question 11

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 outlines specific actions to be taken to implement and achieve the strategic objectives of the organization. A business policy is a set of guidelines or principles that govern the decision-making processes within an organization. A plan is a document that outlines the steps to achieve a specific goal, which can include operational plans. Business rules are a set of guidelines that define how specific business processes should be conducted.

Question 12

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

An operational 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.

Question 13

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

Strategic objectives and key metrics should be set at the top level of an organization and serve as the foundation for decision-making throughout the company. Therefore, top-down drivers are the best choice for the allocation of an organization's assets.

Question 14

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 effectiveness of a campaign is often measured by its relative profitability and net value, as these metrics indicate the financial success and overall impact of the campaign.

Question 15

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 cause-and-effect relationships between the key organizational objectives for all four BSC perspectives. It provides a clear and concise summary of the organization's strategy and how it will create value for its stakeholders. The other options are important components of the balanced scorecard and strategic management, but they do not specifically delineate the process of value creation through cause-and-effect relationships.

Question 16

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 identifying alternative tactics and initiatives to achieve a specific goal. This approach is considered a best practice because it allows organizations to be more flexible and adaptable in the face of changing circumstances. Budget-centric planning, on the other hand, focuses primarily on financial targets and constraints, while cost-centric planning focuses on minimizing costs. Revenue-centric planning is more focused on generating revenue than on defining tactics to achieve specific goals.

Question 17

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 is designed to monitor actual performance against standards or benchmarks, and to identify deviations from these standards. This encourages management by exception, where managers focus their attention and resources on the areas where there are significant deviations from the expected performance. This helps managers prioritize their efforts and resources to address the most pressing issues, and to intervene where necessary to address performance gaps or deficiencies. Strict rules, democratic rules, or elite rules may be part of the control system, but they are not the defining characteristics of a diagnostic control system that encourages effective management by exception.

Question 18

BPM helps organizations translate a unified set of objectives into plans,monitor execution,and deliver critical insight to improve financial and ________ performance.
A) strategic
B) tactical
C) operational
D) daily

Accepted Answer

The answer of BPM helps organizations translate a unified set...

Question 19

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 or σ is used to measure the variability in a process. Variability refers to the amount of deviation or spread of a set of data points from the average or mean value. Therefore, option D, variability, is the best choice.

Question 20

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 provides a comprehensive view of an organization's performance by measuring areas such as financial, customer, internal processes, and learning and growth. It is a popular tool for strategic planning and performance measurement in organizations.

Quiz 9: Business Performance Management

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

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

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:

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

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

Which of the following identifies and prioritizes the key customer,market,competitor,government,demographic,or actually impacting the company?

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

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

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

Which of the following about Six Sigma is not true?

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

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.

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

The effectiveness of a campaign is measured by ________.

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.

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.

An effective diagnostic control system encourages ________.

BPM helps organizations translate a unified set of objectives into plans,monitor execution,and deliver critical insight to improve financial and ________ performance.

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

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