Chapter 6
The Voice of the Market
Copyright
© 2010 Pearson Education, Inc. Publishing as Prentice Hall.
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Strategic Quality Planning
The Voice of the Market
Chapter 6
What
do we mean by “The Voice of the
Market?”
Gaining insight through benchmarking
Purposes of benchmarking
Difficulties in monitoring and measuring
performance
Commonly benchmarked performance
Measures
Copyright
© 2010 Pearson Education, Inc. Publishing as Prentice Hall.
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Strategic Quality Planning
The Voice of the Market
Chapter 6
Best
in Class benchmarking
Best of the Best Benchmarking
Business Process Benchmarking
Leading and managing the
benchmarking effort
Problems with benchmarking
Copyright
© 2010 Pearson Education, Inc. Publishing as Prentice Hall.
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Strategic Quality Planning
The Voice of the Market
What 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
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Strategic Quality Planning
The Voice of the Market
Gaining 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
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Strategic Quality Planning
The Voice of the Market
Purposes of Benchmarking
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Learning from success
Borrowing ideas
Best-in-firm
Beating industry standards
Best-in-class
National Leadership
Best-in-world
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Strategic Quality Planning
The Voice of the Market
Difficulties in Monitoring and Measuring Performance
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Limitations of accounting systems
Computing productivity
Comparisons between US firms
with foreign companies
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Strategic Quality Planning
The Voice of the Market
Commonly Benchmarked Performance Measures
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Financial ratios
Productivity rations
Customer-related results
Operating results
Human resource measures
Quality measures
Market share data
Structural measures
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Strategic Quality Planning
The Voice of the Market
Commonly Benchmarked Performance Measures
“Data and analysis support a variety of
company purposes, such as planning,
reviewing company performance with
competitors or with “best practices”
benchmarks.”
Copyright
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Strategic Quality Planning
The Voice of the Market
Best-In-Class Benchmarking
“Whom do we benchmark?”
•
Copyright
Best-in-class refers to firms or
organizations that have been
recognized as the best in an
industry
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Strategic Quality Planning
The Voice of the Market
Best-Of-The-Best Benchmarking
After Best-in-class?
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Outstanding global benchmark
firms.
Can lead to breakthrough
improvement by causing
individuals… to look at other
industries…
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Strategic Quality Planning
The Voice of the Market
Business Process Benchmarking
Business Process Questions
Eliminate unnecessary Tasks
Copyright
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What?
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Why?
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Strategic Quality Planning
The Voice of the Market
Business Process Benchmarking
Business Process Questions
Change the sequence or combination
Copyright
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Where?
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When?
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Who?
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Strategic Quality Planning
The Voice of the Market
Business Process Benchmarking
Business Process Questions
Simplify the task
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Copyright
How?
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Strategic Quality Planning
The Voice of the Market
Business Process Benchmarking
Business Process Questions
Select an improvement method
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How much?
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Strategic Quality Planning
The Voice of the Market
Business Process Benchmarking
Robert Camp’s 10 steps
Copyright
1.
Decide what to benchmark
2.
Identify whom to benchmark
3.
Plan and conduct the investigation
4.
Determine the current performance
gap
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Strategic Quality Planning
The Voice of the Market
Business Process Benchmarking
Robert Camp’s 10 steps
5.
Copyright
Project future performance levels
6.
Communicate benchmarking
findings and gain acceptance
7.
Revise performance goals
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Strategic Quality Planning
The Voice of the Market
Business Process Benchmarking
Robert Camp’s 10 steps
8.
Copyright
Develop action plans
9.
Implement specific actions and
monitor progress
10.
Recalibrate the benchmarks
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Strategic Quality Planning
The Voice of the Market
Leading and Managing the Benchmarking Effort
Benchmarking is a
managed process
Copyright
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Strategic Quality Planning
The Voice of the Market
Leading and Managing the Benchmarking Effort
Managing the process involves
establishing, supporting and
sustaining the benchmarking
process
Copyright
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Strategic Quality Planning
The Voice of the Market
Leading and Managing the Benchmarking Effort
Management sets expectations
for performance relating to the
benchmarking process
Copyright
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Strategic Quality Planning
The Voice of the Market
Leading and Managing the Benchmarking Effort
Training is the key to success…
this is especially true for
benchmarking
Copyright
© 2010 Pearson Education, Inc. Publishing as Prentice Hall.
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Strategic Quality Planning
The Voice of the Market
Problems with Benchmarking
1.
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4.
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There may be … difficulty obtaining
cooperation
Functional benchmarking with firms
in non-competing industries makes
it difficult to benchmark these firms
Fully understand your own process
before you benchmark someone else
Benchmarking is time consuming
and costly
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Strategic Quality Planning
The Voice of the Market
Summary
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The goal of benchmarking is to
become the best-in-class and then
the best-of-the-best.
Benchmarking is more effective for
firms that have been pursuing
quality and process improvement
over time
Baselines and the use of data and
measures can result in undesired
outcomes
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recording, or otherwise, without the prior written permission of the publisher.
Printed in the United States of America.
Copyright
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