Which two statements are true about Key Performance Indicators (KPIs) and Critical Success Factors (CSFs)? (Choose two.)

Question

Options

• AKPIs measure outcomes.
• BCSFs compare planned and actual performance.
• CKPI are the activities which most heavily influence whether performance is strong or weak.
• DCSFs are a cause of a positive or negative result for the company.

• A
  89% (48)
• B
  7% (4)
• C
  4% (2)

Explanation

A is correct because KPIs are quantifiable metrics that measure the result of business activities - they tell you how well you performed against an objective (e.g., customer satisfaction score, revenue growth %).

D is correct because CSFs are the underlying conditions, activities, or factors that drive whether outcomes are good or bad - they are causes, not measurements (e.g., "strong supplier relationships" is a CSF that causes supply chain success or failure).

B is wrong because comparing planned vs. actual performance is what KPIs do, not CSFs. CSFs don't track variance - they identify what must go right for success.

C is wrong because it describes CSFs, not KPIs. CSFs are the influential activities; KPIs are the scoreboard that measures whether those activities paid off.

Memory tip: Flip the letters - KPI = Keep score (measure outcomes), CSF = Cause of Success/Failure (the driver behind the score). If something measures, it's a KPI; if something causes, it's a CSF.

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