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Question 34/86
You were tasked with preparing the Service Level Agreement and Key Performance Indicators for a contract.
What key characteristics should you consider when writing the Key Performance Indicators (KPIs)?
What key characteristics should you consider when writing the Key Performance Indicators (KPIs)?
Correct Answer: D
Key Performance Indicators (KPIs) must beclear and understandableto ensure they are measurable, actionable, and aligned with organizational goals. The characteristics of effective KPIs include:
* Clarity:KPIs should be easy to interpret by all stakeholders.
* Relevance:They must align withstrategic objectivesandservice level agreements (SLAs).
* Measurability:They should bequantifiableto track progress effectively.
* Why the other options are incorrect:
* (A) Tying KPIs strictly to the budgetmay limit performance insights.
* (B) Easily attainable KPIsmay not drive improvement.
* (C) Not all outcomes are equally important; KPIs must focus on critical factors.
* Clarity:KPIs should be easy to interpret by all stakeholders.
* Relevance:They must align withstrategic objectivesandservice level agreements (SLAs).
* Measurability:They should bequantifiableto track progress effectively.
* Why the other options are incorrect:
* (A) Tying KPIs strictly to the budgetmay limit performance insights.
* (B) Easily attainable KPIsmay not drive improvement.
* (C) Not all outcomes are equally important; KPIs must focus on critical factors.
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