CGEIT · Question #603
A board of directors has mandated that key performance indicators (KPIs) be developed for all IT projects that are created in support of a business objective. Which of the following MUST be reflected
The correct answer is B. Critical success factors (CSFs). For KPIs to be effective in measuring the success of IT projects supporting business objectives, they MUST reflect the critical success factors (CSFs) of those objectives.
Question
A board of directors has mandated that key performance indicators (KPIs) be developed for all IT projects that are created in support of a business objective. Which of the following MUST be reflected in the KPIs to be effective?
Options
- AFuture-state architecture
- BCritical success factors (CSFs)
- CPortfolio management principles
- DKey risk indicators (KRIs)
How the community answered
(29 responses)- B93% (27)
- C3% (1)
- D3% (1)
Why each option
For KPIs to be effective in measuring the success of IT projects supporting business objectives, they MUST reflect the critical success factors (CSFs) of those objectives.
Future-state architecture defines the target technical environment, but it is not the direct measure of a project's success in achieving business objectives like CSFs are.
KPIs must reflect Critical Success Factors (CSFs) because CSFs define the essential elements that must go right for an organization or project to achieve its strategic objectives. By aligning KPIs with CSFs, the metrics directly measure progress towards the most vital aspects of the business objective, ensuring that project performance is genuinely indicative of success.
Portfolio management principles guide the selection and management of projects, but they are not the direct content that effective project-level KPIs must reflect.
Key Risk Indicators (KRIs) measure potential risks, which are important for risk management, but KPIs are focused on measuring performance and achievement of objectives, which are linked to CSFs.
Concept tested: KPI development for project success
Source: https://docs.microsoft.com/en-us/archive/blogs/msftfield/developing-kpis-based-on-critical-success-factors
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