1. Chapter 6
The Voice of the Market

2. 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
Business Process Benchmarking
Leading and Managing the Benchmarking Effort
Baselining and Engineering
Problems with Benchmarking

3. Strategic Quality Planning The Voice of the Market What do we mean by the Voice of the Market?
Strategic Quality Planning Model

4. 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…

5. 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.

6. Strategic Quality Planning The Voice of the Market Gaining insight through benchmarking
Benchmarking Relationship
Initiator Firm
Target Firm

7. Strategic Quality Planning The Voice of the Market Gaining insight through benchmarking
Process Benchmarking
Financial Benchmarking
Performance Benchmarking
Product Benchmarking
Strategic Benchmarking
Functional Benchmarking

8. Strategic Quality Planning The Voice of the Market Purposes of Benchmarking
Learning from success
Borrowing ideas
Best-in-firm
Beating industry standards
Best-in-class
National leadership
Best-in-world

9. Strategic Quality Planning The Voice of the Market Purposes of Benchmarking
Benchmarking Purpose and Quality Maturity

10. Strategic Quality Planning The Voice of the Market Difficulties in Monitoring and Measuring Performance
Limitations of accounting systems
Computing productivity
Comparisons between US firms with foreign companies

11. Strategic Quality Planning The Voice of the Market Commonly Benchmarked Performance Measures
Financial ratios
Productivity rations
Customer-related results
Operating results
Human resource measures
Quality measures
Market share data
Structural measures

12. 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.”
Malcolm Baldridge criteria

13. Strategic Quality Planning The Voice of the Market Commonly Benchmarked Performance Measures
Key business factors (KBFs) are important attributes of a business that influence its operations and decision making.
Example of KBFs
Mission
Vision
Values
Key customer segments
Core capabilities
Culture
Governance
Other facets of a business

14. Strategic Quality Planning The Voice of the Market Business Process Benchmarking
Business Process Benchmarking is based on 5w2h

15. Strategic Quality Planning The Voice of the Market Business Process Benchmarking
How?
How much?
5w2h
Who?
What?
Where?
When?
Why?

16. Strategic Quality Planning The Voice of the Market Business Process Benchmarking
Robert Camp’s 10 Step Process to Benchmarking

17. Strategic Quality Planning The Voice of the Market Business Process Benchmarking
Robert Camp’s 10 steps
Decide what to benchmark
Identify whom to benchmark
Plan and conduct the investigation
Determine the current performance gap

18. Strategic Quality Planning The Voice of the Market Business Process Benchmarking
Robert Camp’s 10 steps
Project future performance levels
Communicate benchmarking findings and gain acceptance
Revise performance goals

19. Strategic Quality Planning The Voice of the Market Business Process Benchmarking
Robert Camp’s 10 steps
Develop action plans
Implement specific actions and monitor progress
Recalibrate the benchmarks

20. Strategic Quality Planning The Voice of the Market Leading and Managing the Benchmarking Effort
Benchmarking is a managed process

21. 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

22. Strategic Quality Planning The Voice of the Market Leading and Managing the Benchmarking Effort
Management sets expectations for performance relating to the benchmarking process

23. 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

24. Strategic Quality Planning The Voice of the Market Baselining and Reengineering
Baselining Process

25. Strategic Quality Planning The Voice of the Market Problems with Benchmarking
Cooperation from other firms
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

26. Strategic Quality Planning The Voice of the Market Summary
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
Business Process Benchmarking
Leading and Managing the Benchmarking Effort
Baselining and Engineering
Problems with Benchmarking

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Printed in the United States of America.