SHRM-CP: HR STRATEGY EXAM
QUESTIONS AND ANSWERS 2026
VERIFIED.
Lagging indicator - ANS Type of metric describing an activity or change in performance that
has already occurred.
Vision statement - ANS Description of what an organization hopes to attain and accomplish in
the future, which guides it toward that defined direction.
Organizational values - ANS Beliefs and principles defined by an organization to direct and
govern its employees' behavior.
Value drivers - ANS Actions, processes, or results that are needed to deliver a desired value.
Environmental scanning - ANS Process that involves a systematic survey and interpretation of
relevant data to identify external opportunities and threats and to assess how these factors
affect the organization currently and how they are likely to affect the organization in the future.
Benchmarking - ANS Process by which an organization identifies performance gaps and sets
goals for performance improvement by comparing its data, performance levels, and/or
processes against those of other organizations.
Balanced scorecard - ANS Performance management tool that depicts an organization's
overall performance, as measured against goals, lagging indicators, and leading indicators.
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, Systems thinking - ANS Process for understanding how seemingly independent units within a
larger entity interact with and influence one another.
Strategic management - ANS System of actions that leaders take to drive an organization
toward its goals and objectives.
Mission statement - ANS Concise outline of an organization's strategy, specifying the
activities the organization intends to pursue and the course its management has charted for the
future.
Strategic fit - ANS State in which an organization's strategy is consistent with its external
opportunities and circumstances and its internal structure, resources, and capabilities.
SWOT analysis - ANS Method for assessment of an organization's strategic capabilities
through use of the environmental scanning process, by which internal and external factors
affecting achievement of organizational goals are identified and considered.
strengths, weaknesses, opportunities, threats
Strategic planning - ANS Process of setting goals and designing a path toward a competitive
position.
Leading indicator - ANS Type of metric describing an activity that can change future
performance and predict success in the achievement of strategic goals.
Key performance indicators (KPIs) - ANS Quantifiable measures of performance used to
gauge progress toward strategic objectives or agreed standards of performance.
Strategy - ANS Plan of action for accomplishing an organization's overall and long-range
goals.
@COPYRIGHT ALL RIGHTS RESERVED PAGE 2 OF 5
QUESTIONS AND ANSWERS 2026
VERIFIED.
Lagging indicator - ANS Type of metric describing an activity or change in performance that
has already occurred.
Vision statement - ANS Description of what an organization hopes to attain and accomplish in
the future, which guides it toward that defined direction.
Organizational values - ANS Beliefs and principles defined by an organization to direct and
govern its employees' behavior.
Value drivers - ANS Actions, processes, or results that are needed to deliver a desired value.
Environmental scanning - ANS Process that involves a systematic survey and interpretation of
relevant data to identify external opportunities and threats and to assess how these factors
affect the organization currently and how they are likely to affect the organization in the future.
Benchmarking - ANS Process by which an organization identifies performance gaps and sets
goals for performance improvement by comparing its data, performance levels, and/or
processes against those of other organizations.
Balanced scorecard - ANS Performance management tool that depicts an organization's
overall performance, as measured against goals, lagging indicators, and leading indicators.
@COPYRIGHT ALL RIGHTS RESERVED PAGE 1 OF 5
, Systems thinking - ANS Process for understanding how seemingly independent units within a
larger entity interact with and influence one another.
Strategic management - ANS System of actions that leaders take to drive an organization
toward its goals and objectives.
Mission statement - ANS Concise outline of an organization's strategy, specifying the
activities the organization intends to pursue and the course its management has charted for the
future.
Strategic fit - ANS State in which an organization's strategy is consistent with its external
opportunities and circumstances and its internal structure, resources, and capabilities.
SWOT analysis - ANS Method for assessment of an organization's strategic capabilities
through use of the environmental scanning process, by which internal and external factors
affecting achievement of organizational goals are identified and considered.
strengths, weaknesses, opportunities, threats
Strategic planning - ANS Process of setting goals and designing a path toward a competitive
position.
Leading indicator - ANS Type of metric describing an activity that can change future
performance and predict success in the achievement of strategic goals.
Key performance indicators (KPIs) - ANS Quantifiable measures of performance used to
gauge progress toward strategic objectives or agreed standards of performance.
Strategy - ANS Plan of action for accomplishing an organization's overall and long-range
goals.
@COPYRIGHT ALL RIGHTS RESERVED PAGE 2 OF 5
