Practice question · Match the pairs
Match each control concept to its definition.
- Standard
- Variance
- Management by exception
- Goodhart’s law
- Actual result minus the standard
- Investigate only deviations beyond a threshold
- A measure made a target stops measuring
- The target performance derived from the plan
Hints
- Separate the standard from the measurement from the gap between them.
- One principle warns that a measure used as a target stops measuring well.
Show the answer
- Standard → The target performance derived from the plan
- Variance → Actual result minus the standard
- Management by exception → Investigate only deviations beyond a threshold
- Goodhart’s law → A measure made a target stops measuring
Why
The cycle’s working parts, and the law that explains why every KPI eventually needs a bodyguard.
Practise Control Systems
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