ACCA Strategic Professional · Advanced Performance Management · Management reports

Corvid Retail's management report uses an on-time delivery rate of 96% as a measure of logistics performance. Investigation shows that drivers mark deliveries as 'on time' once they reach the depot area, and rewards depend on this figure. Which statement best describes the weakness in this non-financial measure and the appropriate response?

The measure is open to manipulation because drivers self-record it under a loose definition and are rewarded on it. The response is to define it precisely, verify it independently, for example by GPS or customer confirmation, and cross-check it against customer satisfaction data rather than raising targets or dropping it.

1. AThe measure is not quantifiable; replace it with a narrative description of delivery performance
2. BThe measure is open to manipulation because it is subjectively recorded and tied to rewards; define it precisely, verify it independently (e.g., GPS or customer confirmation) and corroborate it with customer satisfaction dataCorrect
3. CThe measure is too favourable; set the target at 100% so that no manipulation is possible
4. DThe measure should be dropped because non-financial measures cannot be audited