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ACCA Strategic Professional · Advanced Performance Management · Performance hierarchy

Zephyr Hotels Ltd has the mission of becoming the leading boutique hotel brand in its region. Management has identified 'consistently high guest satisfaction' as something the business must get right to achieve this mission. Which description best fits 'consistently high guest satisfaction' in this context?

Consistently high guest satisfaction is a critical success factor, because it is an area in which the hotel must perform well to achieve its mission. It is not itself a metric; a KPI such as a satisfaction score would be used to measure progress against it.

  1. AA critical success factor, because it is an area where performance must be strong for the mission to be achievedCorrect
  2. BA key performance indicator, because it is a precise numerical measure with a target
  3. CA mission statement, because it describes the overall purpose of the organisation
  4. DA budget variance, because it compares actual results with planned results

Explanation

A critical success factor (CSF) is an element of performance that must be achieved for the organisation to fulfil its mission. Guest satisfaction is an area of performance, not yet a measure. A KPI would be a specific metric such as the guest satisfaction score used to monitor the CSF.

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