Exam 3: Business Performance Management

The effectiveness of a campaign is measured by ________.

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.

DMAIC is a ________ business improvement model.

A comprehensive framework for monitoring performance should address two key issues: what to monitor and how to monitor.

Unlike BPM, DMAIC is an open-loop business improvement model that encompasses the steps of defining, measuring, analyzing, improving, and controlling a process.

A data mart forms the base of a closed-loop marketing system that enables Harrah's to define the objectives of its marketing campaigns, to execute and monitor those campaigns, and to learn what types of campaigns provide the highest return for particular types of customers.

A ________ is the quantification of an objective for a designated period of time. For example, if an organization has an objective of increasing profitability, that objective is turned into quantified targets.

Describe or sketch the BPM cycle.

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

Six Sigma is a performance management methodology aimed at reducing the number of defects in a business process to as close to zero DPMO (defects per million opportunities) as possible.

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

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

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:

The Palladium Group found that 75 percent of organizations tied their budgets to their strategic plans.

A number of surveys have highlighted the gap that routinely exists in organizations between their strategic plans and the execution of those plans. What are the reasons for this strategy gap?

An effective performance measurement system should not change measurements even when the underlying processes and strategies change.

An operational plan translates an organization's strategic objectives and goals into a set of well-defined tactics and initiatives, resource requirements, and expected results for some future time period, usually, but not always, a month.

________ refers to both the logical and physical design of a system.

________ is a framework for organizing, automating, and analyzing business methodologies, metrics, processes, and systems to drive the overall performance of the enterprise.

Explain three of the drawbacks or limitations of using financial data as the core of a performance measurement system.