Turban09_tif - Chapter 9 Business Performance Management...

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97 Chapter 9 Business Performance Management True-False Questions 1. Effective business performance requires an organization to model and monitor not only their tactics but also their strategies and the assumptions on which those strategies are built. Answer : True Difficulty : Easy Page Reference : 386 2. It is very easy to evaluate alternative course of actions without having a set of specific goals or objectives. Answer : False Difficulty : Easy Page Reference : 388 3. During the strategic planning process, the time horizon is determined by the stability of the market; product life cycles; structure of the organization; rate of technological innovation; and capital intensity of the industry. Answer : False Difficulty : Moderate Page Reference : 389 4. For a low-cost provider such as Wal-Mart, distribution capabilities are a critical success factor. Answer : True Difficulty : Easy Page Reference : 389 5. A strategic plan that fails to provide clear directions for the operational and financial planning process is incomplete. Answer : True Difficulty : Easy Page Reference : 389 6. The key to successful operational planning is integration. Answer : True Difficulty : Easy Page Reference : 391 7. There are three types of operational planning. Answer : False Difficulty : Easy Page Reference : 391 8. Conventional planning requires a business to envision what is unknown, uncertain, and not yet obvious to the competition. Answer : False Difficulty : Moderate Page Reference : 394 9. Partnering assesses the level of collaboration among different constituencies inside the organization only. Answer : False Difficulty : Moderate Page Reference : 397
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98 10. Hackett’s benchmarking results indicate world-class companies are significantly more efficient than their peers at managing costs. Answer : True Difficulty : Easy Page Reference : 397 11. An effective performance measurement system should not change measurements even when the underlying processes and strategies change. Answer : False Difficulty : Easy Page Reference : 402 12. Both balanced Scorecards and Six Sigma are performance management tools and methodologies. Answer : True Difficulty : Easy Page Reference : 402 13. Six Sigma is a performance management methodology aimed at reducing the number of defects in a business process to as close to zero DPMO (defects per million opportunities) as possible. Answer : True Difficulty : Easy Page Reference : 405 14. The physical design features the functional elements of a system and their interactions. Answer : False Difficulty : Moderate Page Reference : 409 15. The BPM architecture proposed by the BPM Standards Group is a physical architecture which can be physically deployed in a variety of ways. Answer
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Turban09_tif - Chapter 9 Business Performance Management...

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