WGU D469 – Quality, Continuous Improvement, and Lean Six Sigma
Performance Assessment Study Guide (August 2026)
PERFORMANCE MEASUREMENT &
ORGANIZATIONAL EFFECTIVENESS
Key Performance Indicators (KPIs): A measurable value that
demonstrates how effectively an organization is achieving key objectives.
Characteristics of Effective KPIs:
- Directly aligned with strategy
- Specific, Measurable, Achievable, Relevant, Time-bound (SMART)
- Actionable (organization can influence the metric)
SMART Goals:
- Specific
- Measurable
- Achievable
- Relevant
- Time-bound
Ex. of SMART KPI:
> "Increase average customer satisfaction survey score from 4.2 to 4.5 out
of 5 by end of Q3"
,Leading vs. Lagging Indicators
Leading Indicators:
- Predict future performance
- Proactive
- Allow corrective action before problems occur
Ex.) Training completion rate, qualified leads in pipeline, timely antibiotic
administration
Lagging Indicators:
- Measure past results
- Reactive
- Evaluate after actions have occurred
Ex.) Annual profit, customer satisfaction score, defect rate reported at
month-end
Organizational Effectiveness vs. Efficiency
- Effectiveness: Achievement of strategic objectives (doing the right things)
- Efficiency: Input-to-output ratios (doing things right)
BALANCED SCORECARD FRAMEWORK
Purpose: Translates strategy into a balanced set of performance measures
across four perspectives:
1. Financial: ROI, revenue growth, cost reduction
2. Customer: Satisfaction, retention, market share
3. Internal Processes: Cycle time, defect rate, process efficiency
, 4. Learning & Growth: Employee skills, organizational culture, information
systems
Scorecard vs. Dashboard
Scorecard:
- Tracks progress against strategic goals
- Longer-term focus
Dashboard:
- Provides real-time operational data
- Immediate focus
QUALITY MANAGEMENT FUNDAMENTALS
Key Contributors to Quality Management
W. Edwards Deming: Father of modern quality management; PDCA cycle;
14 Points
Philip Crosby: "Zero defects"; "Quality is free"
Joseph Juran: Quality trilogy (planning, control, improvement)
Kaoru Ishikawa: Fishbone diagram; quality circles
Total Quality Management (TQM)
The main goal of TQM is to achieve long-term customer satisfaction through
continuous improvement.
Key Principles:
- Customer focus
- Employee involvement
- Continuous improvement
Performance Assessment Study Guide (August 2026)
PERFORMANCE MEASUREMENT &
ORGANIZATIONAL EFFECTIVENESS
Key Performance Indicators (KPIs): A measurable value that
demonstrates how effectively an organization is achieving key objectives.
Characteristics of Effective KPIs:
- Directly aligned with strategy
- Specific, Measurable, Achievable, Relevant, Time-bound (SMART)
- Actionable (organization can influence the metric)
SMART Goals:
- Specific
- Measurable
- Achievable
- Relevant
- Time-bound
Ex. of SMART KPI:
> "Increase average customer satisfaction survey score from 4.2 to 4.5 out
of 5 by end of Q3"
,Leading vs. Lagging Indicators
Leading Indicators:
- Predict future performance
- Proactive
- Allow corrective action before problems occur
Ex.) Training completion rate, qualified leads in pipeline, timely antibiotic
administration
Lagging Indicators:
- Measure past results
- Reactive
- Evaluate after actions have occurred
Ex.) Annual profit, customer satisfaction score, defect rate reported at
month-end
Organizational Effectiveness vs. Efficiency
- Effectiveness: Achievement of strategic objectives (doing the right things)
- Efficiency: Input-to-output ratios (doing things right)
BALANCED SCORECARD FRAMEWORK
Purpose: Translates strategy into a balanced set of performance measures
across four perspectives:
1. Financial: ROI, revenue growth, cost reduction
2. Customer: Satisfaction, retention, market share
3. Internal Processes: Cycle time, defect rate, process efficiency
, 4. Learning & Growth: Employee skills, organizational culture, information
systems
Scorecard vs. Dashboard
Scorecard:
- Tracks progress against strategic goals
- Longer-term focus
Dashboard:
- Provides real-time operational data
- Immediate focus
QUALITY MANAGEMENT FUNDAMENTALS
Key Contributors to Quality Management
W. Edwards Deming: Father of modern quality management; PDCA cycle;
14 Points
Philip Crosby: "Zero defects"; "Quality is free"
Joseph Juran: Quality trilogy (planning, control, improvement)
Kaoru Ishikawa: Fishbone diagram; quality circles
Total Quality Management (TQM)
The main goal of TQM is to achieve long-term customer satisfaction through
continuous improvement.
Key Principles:
- Customer focus
- Employee involvement
- Continuous improvement
