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ACCA Strategic Professional · Strategic Business Leader · Enabling success: performance excellence

Brightwater Utilities is restating its strategy. The directors first agree the mission and objectives, then list the areas where performance must be strong, and only then choose measures and targets for each area. Which sequence correctly describes this approach?

The correct sequence is objectives, then critical success factors, then key performance indicators. Objectives state what is to be achieved, CSFs identify what must go right to achieve them, and KPIs measure performance in those areas. Starting with KPIs risks measuring what is easy instead of what matters.

  1. AKPIs, then CSFs, then objectives
  2. BCSFs, then objectives, then KPIs
  3. CObjectives, then CSFs, then KPIsCorrect
  4. DObjectives, then KPIs, then CSFs

Explanation

Objectives come from the mission and set what the organisation wants to achieve. CSFs identify what must go right to achieve them, and KPIs are then chosen to measure performance against each CSF. Starting with KPIs risks measuring what is easy rather than what is critical.

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