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ACCA Strategic Professional · Advanced Performance Management · Performance hierarchy

Marlow Retail's board wants to apply the 'SMART' criteria when setting a KPI for the CSF of 'superior store availability'. Which KPI wording best meets the criteria, particularly that it is specific, measurable and time-bound?

The best KPI is reducing out-of-stock incidents on the top 200 lines to below 2% of shelf checks by a stated date. It is specific in scope, measurable by shelf checks, and time-bound, whereas the alternatives are vague aspirations or describe effort rather than a measurable result.

  1. AReduce out-of-stock incidents on the top 200 product lines to below 2% of shelf checks across all stores by 31 December next yearCorrect
  2. BImprove stock availability as much as possible
  3. CEnsure customers are generally happy with product ranges
  4. DMake sure the supply chain team works harder on replenishment

Explanation

The first option defines the scope (top 200 lines), a measurable target (below 2% of shelf checks) and a deadline. The others are vague, unmeasurable or describe effort rather than results.

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