everything Flashcards
What is a strategic indicator?
A strategic indicator is the measurement that controls
the organization’s long-term direction and scope.
What are examples of strategic indicators?
Customer Satisfaction
Customer loyalty
NPS
EBITDA
What is an Operational Indicator
An Operational Indicator is the measurement that controls
agents that affect the achievement of the strategic
objectives.
[T/F] An operational indicator is a sub-indicator of a strategic indicator
False
What is a KPI?
strategic measurement focused on those aspects
of an organisation’s performance that are most critical for its current and future
success.
[T/F] KPI is an early warning indicator?
True
[T/F] The goal of a Strategy Map is to link indicators with one another
False, it is linking objectives with one another
If a company handles business through strategy (or competitive advantage), it is a process-driven organization
False, it is a functional organization
If a company handles business through customers, it is a process-driven organization
True
A functional organization is one that focuses on Strategy rather than customers
True
What are the seven uses for indicatorss?
Looking Backwards and Forwards
Feedback
Benchmarking
Creating a cascade
Compensation Motivation
[T/F] We should focus on customer-satisfaction indicators because they begin the chain of interlinked indicators
True
KPI vs CPI
KPI measures how customers are performing for the company
CPI measures how customers are performing for the customers
[T/F] KPI is a strategic indicator?
True
Why is NPS a KPI?
It does not talk about customer satisfaction; it is merely a recommendation tool. It does not tell you what the company is doing wrong
