4.2.10 - KPI

Question 1

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Answer 1

• KPI allow a business to collect data that it can use to objectively quantify the relative success of its business transformation
• A business typically undertakes change to achieve an objective and improve its performance
• KPI’s can be used to identify whether a business change has achieved the desired objectives or if further changes are required to improve that area of performance

Question 2

By reviewing KPI’s, a business can evaluate the effectiveness of its transformation by;

Answer 2

• Analysing the size and extend of its change
• Identifying whether the change has successfully achieved its objectives
• Identifying whether the change has negatively impacted another area of performance
• Determining whether more effort and time are required for the change to achieve desired objectives
• Considering alternative management strategies to achieve the desired result or improve areas that were negatively impacted by change