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ACCA Strategic Professional · Advanced Performance Management · Performance hierarchy

Harbourline Foods lists a performance objective: 'Improve customer satisfaction.' A manager complains that managers cannot tell whether it has been achieved. Which change would most directly convert it into a well-formed performance objective?

Adding a deadline and a measurable target, such as an 85% satisfaction score within 12 months, best fixes the objective. Well-formed objectives are specific, measurable and time-bound, allowing managers to judge whether the objective has been achieved, unlike vague statements or mission-style wording.

  1. AAdd a deadline and a measurable target, such as reaching a satisfaction score of 85% within 12 monthsCorrect
  2. BRephrase it as a mission statement to make it more inspiring
  3. CLink it to the share price so it becomes a financial objective
  4. DRemove it and rely on managers' judgement

Explanation

Effective objectives are specific, measurable and time-bound. Adding a score target and deadline makes achievement assessable. A mission statement is broader and less measurable, and linking to share price adds noise outside managers' control.

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