Performance Metrics Flashcards

Which measurement cadence best balances responsiveness and noise for most small-business operational KPIs?

Answer: Weekly or monthly review, depending on the metric's volatility

Regular weekly or monthly reviews catch trends early without overreacting to daily noise.

A coaching client asks how to measure the success of the coaching engagement itself. Which approach is most defensible?

Answer: Compare agreed baseline metrics to results after the engagement using predefined success criteria

Pre-agreed success criteria measured against a baseline provide objective evidence of coaching impact.

What does a current ratio below 1.0 indicate about a coaching client's business?

Answer: Current liabilities exceed current assets, signaling potential liquidity risk

A current ratio under 1.0 means short-term obligations exceed short-term assets, a liquidity warning sign.

A client wants one metric to track overall customer retention. Which is the most direct choice?

Answer: Customer churn rate

Churn rate directly measures the percentage of customers lost over a period, the inverse of retention.

In OKR methodology, how do key results differ from objectives?

Answer: Key results are measurable outcomes that verify achievement of the qualitative objective

Objectives state the qualitative goal while key results quantify how achievement will be verified.

A client's revenue per employee has declined for three straight quarters while headcount grew. What should the coach investigate?

Answer: Whether new hires are ramping slowly or roles are misaligned with revenue-generating work

Falling revenue per employee amid hiring suggests slow ramp-up or headcount added to non-revenue functions.

Why should a coach encourage clients to pair an efficiency metric with a quality metric?

Answer: To prevent speed gains from being achieved by sacrificing quality

Pairing counterbalancing metrics ensures improvements in one dimension do not silently degrade another.