CFM Exam Dumps | You were tasked with preparing the Service Level Agreement and Key Performance Indicators for a contract.

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Question 22/122

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)?

A. The KPIs must be tied to the budget.

B. The KPIs must be easily attainable.

C. The KPIs must measure all outcomes equally.

D. The KPIs must be clear and understandable.

Correct Answer: D

Key Performance Indicators (KPIs) must be clear and understandable to 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 with strategic objectives and service level agreements (SLAs).
* Measurability: They should be quantifiable to track progress effectively.
* Why the other options are incorrect:
* (A) Tying KPIs strictly to the budget may limit performance insights.
* (B) Easily attainable KPIs may not drive improvement.
* (C) Not all outcomes are equally important; KPIs must focus on critical factors.

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