Embed Size (px)
Citation preview
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall.6- 1
Chapter 6
The Voice of the Market
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall.6- 2
Strategic Quality PlanningThe Voice of the MarketChapter 6
What do we mean by “The Voice of the Market?”Gaining insight through benchmarkingPurposes of benchmarkingDifficulties in monitoring and measuring performanceCommonly benchmarked performance MeasuresBusiness Process BenchmarkingLeading and Managing the Benchmarking EffortBaselining and EngineeringProblems with Benchmarking
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall.6- 3
Strategic Quality PlanningThe Voice of the MarketWhat do we mean by the Voice of the Market?
Strategic Quality Planning Model
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall.6- 4
Strategic Quality PlanningThe Voice of the MarketWhat do we mean by the Voice of the Market?
One of our best sources of information can be other companies.
By understanding our competitors we begin to understand the marketplace better…
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall.6- 5
Strategic Quality PlanningThe Voice of the MarketGaining insight through benchmarking
A Benchmark is an organization recognized for its exemplary operational performance.
Benchmarking is the sharing of information between companies so that both can improve.
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall.6- 6
Strategic Quality PlanningThe Voice of the MarketGaining insight through benchmarking
Benchmarking Relationship
Initiator Firm
Target Firm
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall.6- 7
Strategic Quality PlanningThe Voice of the MarketGaining insight through benchmarking
Process BenchmarkingFinancial BenchmarkingPerformance BenchmarkingProduct BenchmarkingStrategic BenchmarkingFunctional Benchmarking
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall.6- 8
Strategic Quality PlanningThe Voice of the MarketPurposes of Benchmarking
1. Learning from success
2. Borrowing ideas
3. Best-in-firm
4. Beating industry standards
5. Best-in-class
6. National leadership
7. Best-in-world
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall.6- 9
Strategic Quality PlanningThe Voice of the MarketPurposes of Benchmarking
Benchmarking Purpose and Quality Maturity
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall.6- 10
Strategic Quality PlanningThe Voice of the MarketDifficulties in Monitoring and Measuring Performance
Limitations of accounting systems Computing productivity Comparisons between US firms
with foreign companies
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall.6- 11
Strategic Quality PlanningThe Voice of the MarketCommonly Benchmarked Performance Measures
Financial ratios Productivity rations Customer-related results Operating results Human resource measures Quality measures Market share data Structural measures
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall.6- 12
Strategic Quality PlanningThe Voice of the MarketCommonly Benchmarked Performance Measures
“Data and analysis support a variety ofcompany purposes, such as planning,reviewing company performance withcompetitors or with “best practices”
benchmarks.” Malcolm Baldridge criteria
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall.6- 13
Strategic Quality PlanningThe Voice of the MarketCommonly Benchmarked Performance Measures
Key business factors (KBFs) are important attributes of a business that influence its operations and decision making.Example of KBFsMissionVisionValuesKey customer segmentsCore capabilitiesCultureGovernanceOther facets of a business
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall.6- 14
Strategic Quality PlanningThe Voice of the MarketBusiness Process Benchmarking
Business Process Benchmarking is based on 5w2h
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall.6- 15
Strategic Quality PlanningThe Voice of the MarketBusiness Process Benchmarking
5w2h
Who?
What?
Where?
When?
Why?
How?
How much?
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall.6- 16
Strategic Quality PlanningThe Voice of the MarketBusiness Process Benchmarking
Robert Camp’s 10 Step Process to Benchmarking
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall.6- 17
Strategic Quality PlanningThe Voice of the MarketBusiness Process Benchmarking
Robert Camp’s 10 steps
1. Decide what to benchmark
2. Identify whom to benchmark
3. Plan and conduct the investigation
4. Determine the current performance gap
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall.6- 18
Strategic Quality PlanningThe Voice of the MarketBusiness Process Benchmarking
Robert Camp’s 10 steps
5. Project future performance levels
6. Communicate benchmarking findings and gain acceptance
7. Revise performance goals
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall.6- 19
Strategic Quality PlanningThe Voice of the MarketBusiness Process Benchmarking
Robert Camp’s 10 steps
8. Develop action plans
9. Implement specific actions and monitor progress
10. Recalibrate the benchmarks
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall.6- 20
Strategic Quality PlanningThe Voice of the MarketLeading and Managing the Benchmarking Effort
Benchmarking is a managed process
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall.6- 21
Strategic Quality PlanningThe Voice of the MarketLeading and Managing the Benchmarking Effort
Managing the process involves establishing, supporting and sustaining the benchmarking process
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall.6- 22
Strategic Quality PlanningThe Voice of the MarketLeading and Managing the Benchmarking Effort
Management sets expectations for performance relating to the benchmarking process
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall.6- 23
Strategic Quality PlanningThe Voice of the MarketLeading and Managing the Benchmarking Effort
Training is the key to success… this is especially true for benchmarking
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall.6- 24
Strategic Quality PlanningThe Voice of the MarketBaselining and Reengineering
Baselining
Reengineering
Baselining Process
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall.6- 25
Strategic Quality PlanningThe Voice of the MarketProblems with Benchmarking
1. Cooperation from other firms2. Functional benchmarking with firms
in non-competing industries makes it difficult to benchmark these firms
3. Fully understand your own process before you benchmark someone else
4. Benchmarking is time consuming and costly
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall.6- 26
Strategic Quality PlanningThe Voice of the MarketSummary
What do we mean by “The Voice of the Market?”Gaining insight through benchmarkingPurposes of benchmarkingDifficulties in monitoring and measuring performanceCommonly benchmarked performance MeasuresBusiness Process BenchmarkingLeading and Managing the Benchmarking EffortBaselining and EngineeringProblems with Benchmarking
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall.6- 27
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or
otherwise, without the prior written permission of the publisher. Printed in the United States of America.
