CBAP · Question #513
A company is reconfiguring its business processes 10 improve The quality of its products and lower operational costs. This includes defining metrics that will be used to evaluate the effectiveness…
The correct answer is B. financial analysis. Financial analysis produces quantitative metrics such as cost reduction ratios and return on investment that directly measure whether a change strategy achieved its operational efficiency and quality goals.
Question
A company is reconfiguring its business processes 10 improve The quality of its products and lower operational costs. This includes defining metrics that will be used to evaluate the effectiveness of future change strategy. Which of the following techniques achieves this goal?
Options
- ADecision modeling
- Bfinancial analysis
- CBusiness case
- DBalanced storecard
How the community answered
(44 responses)- A5% (2)
- B77% (34)
- C11% (5)
- D7% (3)
Why each option
Financial analysis produces quantitative metrics such as cost reduction ratios and return on investment that directly measure whether a change strategy achieved its operational efficiency and quality goals.
Decision modeling is a technique for representing and analyzing how decisions are made within business processes; it does not produce performance metrics for evaluating the outcomes of an implemented change strategy.
Financial analysis examines costs, benefits, and value outcomes of business changes through measurable metrics such as operational cost reduction percentages, cost-benefit ratios, and return on investment calculations. Because the company's objectives are specifically to lower operational costs and improve product quality, financial analysis generates the concrete performance indicators needed to evaluate whether the implemented change strategy delivered its intended results.
A business case is a justification document created before a project begins to gain approval for investment; it is not an analytical technique for defining ongoing metrics to measure post-implementation effectiveness.
A balanced scorecard is a strategic management reporting framework that organizes existing performance data across multiple perspectives; it is not an analytical technique used to define and derive the specific metrics for evaluating a change strategy's effectiveness.
Concept tested: Financial analysis for change strategy effectiveness metrics
Source: https://www.iiba.org/career-resources/a-business-analysis-professionals-foundation-for-success/babok/
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