Performance Measurement & KPIs Flashcards
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Read the first 7 Performance Measurement & KPIs flashcards as text
A client claims coaching "isn't working" despite hitting 8 of 10 KPI targets. What should the coach do first?
Answer: Explore whether the KPIs actually reflect the outcomes the client values
When results and perception conflict, the coach should verify that the chosen KPIs align with the client's true success criteria.
Which formula correctly calculates employee turnover rate for a period?
Answer: Number of separations divided by average headcount, multiplied by 100
Turnover rate is separations divided by average number of employees during the period, expressed as a percentage.
A coach introduces OKRs to a client. How do key results differ from KPIs in ongoing operations?
Answer: Key results measure progress toward a specific time-boxed objective, while KPIs monitor ongoing business health
Key results track achievement of a defined objective within a cycle, whereas KPIs continuously monitor steady-state performance.
A restaurant client wants to improve profitability. Which KPI gives the most direct insight into menu pricing effectiveness?
Answer: Gross profit margin per menu item
Item-level gross margin shows how pricing and cost interact for each dish, directly informing pricing decisions.
What is the main purpose of a KPI dashboard in a coaching engagement?
Answer: To provide a real-time, at-a-glance view of progress against agreed targets
Dashboards visualize current KPI status so coach and client can quickly assess progress and focus discussions.
A client's revenue KPI shows a 15% jump in one month. Before celebrating, what should the coach encourage the client to check?
Answer: Whether the spike is a sustainable trend or a one-off anomaly, such as seasonality or a single large order
Single data points can mislead, so trends should be validated against seasonality and one-time events before drawing conclusions.
Which KPI would best help a coaching client assess cash flow health?
Answer: Days sales outstanding (DSO)
DSO measures how quickly receivables convert to cash, a core driver of cash flow health.