【正文】 k Book value Isoquants: = constant market capitalization Specialist: control through performance Shaper: Total control Integrator: Control through size Incumbent: Possible lack of control FRAMEWORKS: STRATEGIC CONTROL MAP 30 000624FT_262414_777_v3_i 012345670 5 10 15 20 25 30Book equity Market to book Lloyds/TSB Unicredito Italiano SpA UBS/SBC BNP/Paribas Deutsche Bank (incl. BT) BSCH Hypo Vereinsbank 10 bn 30 bn 50 bn Oct. 1999 1995 Market capitalization STRATEGIC CONTROL MAP: BANKING EXAMPLE 31 000624FT_262414_777_v3_i TOOLS AND FRAMEWORKS: UNDERSTANDING THE BUSINESS SYSTEM ?Source ?Patents ?Product/ process choices ?Function ?Physical characteristics ?Aesthetics ?Quality ?Integration ?Raw materials ?Capacity ?Location ?Procurement ?Parts production ?Assembly ?Prices ?Advertising ?Sales force ?Package ?Brand ?Channels ?Integration ?Inventory ?Transport Technology Product design Manufacturing Marketing Distribution Service ?Warranty ?Speed ?Captive/ independent ?Prices Business system 32 000624FT_262414_777_v3_i MANAGEMENT CONSULTING: SELECTED METHODS ?Rankings ?Frameworks ?Benchmarking ?Balanced scorecards 33 000624FT_262414_777_v3_i BENCHMARKING Why ?Broad perspective ?Increase petitor knowledge ?Stimulate creativity Future market requirements External benchmarking (worldclass benchmarking) Internal benchmarking Define objectives and consider ?Vision ?Courage ?Culture ?Capabilities ?Acceptance 34 000624FT_262414_777_v3_i THE SYSTEMATIC APPROACH TO WORLDCLASS BENCHMARKING Establish program for change Choice of processes which have to be analyzed Choice of metrics and methods Choose parable processes for benchmarking Integrate/ analysis 35 000624FT_262414_777_v3_i EXTERNAL BENCHMARKING: ONE EXAMPLE ?The CEO of pany x thinks that his pany is not very good in dealing with its suppliers. He asks you to evaluate the supplier management through a benchmarking exercise. You should e up with suggestions for further analyses Task Hints ?What determines the success of the supply management (speed, quality, …)? ?How can you measure these relationships in order to make them parable across panies? 36 000624FT_262414_777_v3_i SUPPLIER MANAGEMENT BEST PRACTICE – EXAMPLES Benchmark Costs Percent Purchasing officer/total staff EXAMPLE Time needed in weeks Quality – supplies Percent 40502025Purchasing officer/ USD 1 billion purchase Choice of supplier 2 , 02 0 , 00 , 53 , 0Lead time supplier Delays 201022Unsatisfactory products 37 000624FT_262414_777_v3_i ADVANTAGES AND DISADVANTAGES OF SELECTED BENCHMARKING APPROACHES Future market requirements External benchmarking Internal benchmarking Advantages Disadvantages ?Forward looking ?Consistent with strategy ?Reflects customer needs ?Difficult to quantify ?Broad perspective ?Easy to convince ?Creative approach ?New ideas ?Data intensive ?Danger of imitation instead of innovation ?Comparability needs to be guaranteed ?Easy to implement ?Competition within pany ?Good results for top performing pany ?Small (biased) sample ?Internal conflicts 38 000624FT_262414_777_v3_i VORTEILE DES BENCHMARKING ?Verbesserte Einsch228。st228。terindustrie Fluggesellschaften, gehobene Hotels Versandunternehmen Kreditkartenunternehmen Beratungsfirmen Marktforschungsinstitute Telekommunikationsfirmen 40 000624FT_262414_777_v3_i BENCHMARKING INFORMATIONEN AUS SEKUND196。ffentlichungen 252。ume ? Verschiedene Verdichtungsebenen 42 000624FT_262414_777_v3_i MANAGEMENT CONSULTING: SELECTED METHODS ?Rankings ?Frameworks ?Benchmarking ?Balanced scorecards 43 000624FT_262414_777_v3_i REFINING TRADITIONAL PLANNING PROCESSES Problems with traditional planning processes ... ?Not very linked to aspirations or realistic strategies for the business。 actions ?Leverage employee knowhow in solving the problems they are best equipped 44 000624FT_262414_777_v3_i REVIEWING FOUR WELLKNOWN METHODOLOGIES – (1/2) Defining characteristics/ strengths Potential missing elements Balanced scorecard ?Measurement of performance across four balanced perspectives – financial, customers, internal business process, and learning and growth ?Linkage with strategy ?Current and longerterm perspective ?Managing process that is integrated with business cycle ?Links to individual performance evaluation 1 Total quality management ?Quality in everything we do as principal source of performance improvement ?Customerdriven plan provides direction ?Focus on key business priorities ?Stretch target philosophy 2 ?Rigorous emphasis on what actually drives performance ?Focuses management attention on the key drivers and on performance exceptions ?Formal opportunity planning and targetsetting exercises that clearly prioritize anizational efforts Key performance indicators 3 45 000624FT_262414_777_v3_i REVIEWING FOUR WELLKNOWN METHODOLOGIES – (2/2) Defining characteristics/ strengths Potential missing elements Valuedbased management ?Direct linkage to shareholder value ?Approach for addressing performance drivers that are not derived directly from quantifiable economic drivers ?Approach to measuring longerterm performance indicators (., customer satisfaction, innovation) 4 46 000624FT_262414_777_v3_i BALANCED SCORECARDS: TRANSLATING VISION AND STRATEGY – FOUR PERSPECTIVES Source: HBR January February 1996, Robert Kaplan, page 76 Financial Objective Measure Targ