CIPS L4m3 Commercial Contracting · Free Practice Question Easy
Question 12
Chris is in the process of formulating the KPIs for the agreement with the primary material suppliers to oversee their performance under the contract. What is the first step in designing these KPIs?
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A
Determine the elements that require measurement
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B
Determine the criteria for awarding the contract
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C
Develop the specification
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D
Establish the measurement frequency
Reveal correct answer
Correct answer: A
Explanation
The correct answer is:
Determine the elements that require measurement.
This is typically the first step in designing KPIs, as it’s crucial to identify what specific aspects of performance need to be tracked and evaluated before you can establish how frequently they should be measured or the criteria for awarding contracts based on those measurements.
Reference: CIPS L4M3 study guide page 104 / The new syllabus 2024
LO 2, AC 2.2
Discussion
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