True or False: In order to enable performance improvement, performance objectives must be traceable to business objectives.

The statement is true because aligning performance objectives with business objectives is essential for meaningful performance improvement. When performance objectives are traceable to the overall goals of the organization, it ensures that efforts and resources are being directed toward initiatives that support the organization’s mission and strategic plans. This alignment facilitates a clear understanding of how individual or team performance contributes to the larger organizational goals, allowing for more focused and effective improvement initiatives.

Moreover, having traceable performance objectives enables organizations to measure progress effectively and adjust strategies as necessary to ensure that the desired outcomes are achieved. This connection helps foster accountability and motivation among employees, as they can see the direct impact of their efforts on the organization's success. Without this traceability, performance improvements might not have the desired effect on the organization's overall performance or enable informed decision-making based on a comprehensive understanding of how various aspects of performance influence business results.