ACCA Applied Skills · Performance Management · Performance analysis
A company calls its helpline and measures the average time to answer calls. Management wants to use this single non-financial indicator to assess customer service. Which limitation is MOST relevant?
The main limitation is dysfunctional behaviour: staff may rush or end calls early to improve the time measure, reducing the quality of resolution. The measure is quantifiable and timely, so the other options are incorrect.
- AIt may encourage staff to end calls quickly, harming resolution qualityCorrect
- BIt cannot be quantified and so cannot be compared over time
- CIt is only available after the year-end financial statements are prepared
- DIt measures only past financial results
Explanation
Focusing on a single speed metric can lead to dysfunctional behaviour such as rushing or cutting off callers, reducing quality. Such measures are quantifiable, available promptly and non-financial, so the other options are wrong.
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