CGEIT practice question 2 of 35

Once the strategic vision has been established, which of the following would be the BEST activity for supporting the implementation of performance measures?

Full set: 682 questions

Domain Risk Optimization

Answer options
A: Monitor service level performance.
B: Document strengths, weaknesses, opportunities, and threats.
C: Document policy requirements
D: Identify key performance indicators (KPIs). Correct answer
Correct Answer:
D. Identify key performance indicators (KPIs).
Explanation

Once a strategic vision is established, it must be translated into measurable objectives. The most effective activity to support the implementation of performance measures is to identify Key Performance Indicators (KPIs). KPIs are specific, quantifiable metrics that directly measure the achievement of strategic goals. They form the foundation of the performance measurement framework by providing clear targets and a means to track progress. This allows the enterprise to monitor how effectively it is executing its strategy and to make data-driven decisions. Without defined KPIs, any performance measurement system would lack focus and relevance to the strategic vision.

Why Incorrect

A. Monitor service level performance: This is an ongoing operational activity that occurs after performance measures (like KPIs and SLAs) have been defined and implemented.
B. Document strengths, weaknesses, opportunities, and threats: A SWOT analysis is a strategic planning tool used to formulate the strategic vision, not to implement performance measures after the vision is set.
C. Document policy requirements: While performance measures must align with policy, documenting policies is a foundational governance activity that precedes the specific task of creating metrics to measure strategic execution.

References

1. ISACA. (2020). CGEIT Review Manual

8th Edition. Domain 1: Governance of Enterprise IT

Section B: Strategic Management

pp. 45-46. The manual explains that after the IT strategy is developed

performance metrics must be defined to measure the achievement of strategic goals.

2. ISACA. (2018). COBIT 2019 Framework: Governance and Management Objectives. APO02

Managed Strategy

Key Management Practice 3 (APO02.03). This practice states

"Define the I&T strategy and road map

including the definition of key performance indicators (KPIs) and improvement actions." This directly links strategy definition to the identification of KPIs.

3. ISACA. (2018). COBIT 2019 Framework: Introduction and Methodology. Chapter 4: The COBIT Goals Cascade

p. 31. The goals cascade is the core mechanism for translating high-level enterprise goals into specific

measurable IT-related goals and metrics (KPIs)

which is the essential step after the strategy is set.

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