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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA APM Exams › KPI Evaluation
Dear Ken,
Where a question requirement is to “Evaluate the appropriateness of KPIs in relation to the organization’s objectives/CSFs”, is it enough to just state the pros and cons of the KPI and move on or is it always necessary to add a suggested alternative/better KPI after writing the pros and cons?
Thank you.
The most important thing is to evaluate the KPI given. However, if you can easily say how it might be modified or enhanced, I would think that will often bring you marks because it can add more explanation to your points about the original KPI.
So if the KPI was based on production volume, the criticism is that this takes no account of quality and can encourage shoddy production. I would then say that KPIs including both volume and quality measures are needed to overcome that problem
Ok, got it.
Thanks so much.