18 Questions
What is the purpose of a performance indicator system?
Performance measurement over time; internal and external benchmarking; planning.
What are the two types of performance indicator systems?
Order systems and Key figure systems.
What is the significance of automation in performance indicator systems?
It allows for more comprehensive and real-time representation of quantitative indicators.
What are the two types of indicators in a performance indicator system?
Financial and non-financial indicators.
What is the importance of congruence with corporate strategy in designing a performance indicator system?
It ensures that performance indicators align with and support the organization's overall strategy.
What is one of the criteria for designing a performance indicator system?
Content balance between performance drivers and financial indicators.
What is the primary purpose of a Balanced Scorecard (BSC) in a business?
To monitor a business' various functions and processes and resulting outcomes.
What four main aspects of a business does a Balanced Scorecard measure?
Learning and growth, business processes, customers, and finance.
How does a Balanced Scorecard operationalize corporate strategy?
By serving as a basis for monitoring target achievement.
What is the purpose of tracking BSC-related KPIs in a management information system?
To monitor target achievement and track progress towards objectives.
What is an example of a KPI related to customer retention?
Customer churn.
What is the objective of upskilling a workforce in terms of training days per employee per annum?
10 days per employee.
What is the purpose of Business Intelligence (OLAP) in a financial context?
Calculating and displaying performance indicators and ratios, such as operating margin, on company, business unit, and product level.
What are some common challenges in implementing Business Intelligence in finance?
Integrating non-regular business events, establishing automated APIs with base systems, and selecting appropriate software packages from a broad tool landscape.
What is the operating margin performance indicator?
The operating margin is calculated as (revenues - operating expenses) / revenues.
What is the purpose of special liquidity planning software packages?
To produce cash flow forecasts.
What types of financial statements are related to financial KPIs and ratios?
Balance sheet, Profit & Loss statement, and Cash Flow statement.
What is the purpose of Customer Lifetime Value (CLV) in a Performance Indicator System?
To measure the total value of a customer to a business over their lifetime.
This quiz tests your understanding of performance indicator systems, including their general characteristics, types, and purposes. Learn how to measure performance over time and improve your business strategy.
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