ITPEC IP April 2024 Question 84

Source exam: ITPEC IP April 2024Topic: Business Strategy Management

ITPEC IP April 2024 — Question 84 of 100

The number of contracts concluded is the KGI, while the number of proposals is the KPI. The stated final goal is to increase completed contracts, so that outcome measures goal achievement. Making proposals is an upstream sales activity expected to influence the result, so its count is a performance indicator that can be monitored and adjusted during execution.

Answer (b)

Why not others:
- (a) sales amount does not directly measure the proposal activity described

- (c) reverses the logic by treating an activity count as the final goal and sales as its driver

- (d) also reverses KGI and KPI: contracts are the desired result, not the leading activity

Key rule: A KGI measures the final outcome to achieve; a KPI measures a controllable process or intermediate performance that contributes to that outcome.

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