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Improving Performance (Stage 1: Judge the importance of performance …
Improving Performance
Stage 1: Judge the importance of performance
measures to customer
s
organisation’s customers’ view of importance is quite specific to each market segment and is often assessed through some market research
We might exclude any restaurant that appears dirty or where the staff are really unfriendly, and then choose somewhere that is good for quality of food at a price that is reasonable.
Customers make a purchase decision based upon a range of criteria, i.e operations performance
Slack (1994) ranks this
importance on a nine-point scale
Stage 2: Judge the performance against competitors
organisation’s performance of an operation is
always assessed relative to their competition and not simply as an absolute measure.
Slack’s (1994) approach is to develop this into another nine-point scale
Stage 3: Match performance against characteristics
Four Zones: Excess / Appropriate / Improve & Urgent Action
Once an organisation has established both the importance and performance of each priority it can put them into the importance-performance matrix,
Stage 4: Develop improvement plans
The performance-important matrix can be used to direct improvement, activity. It shows where urgent action needs to be taken
Structure of the importance performance
Problematic to under perform in ways that matter to customers
Zones, appropriate = matching competitors performance, whereas Improving is the areas u need to improve, Urgent Action is were vital action is needed asap
No good to excel in areas customers do not care
Using the importance-performance matrix
Look at performance relative to the competition
Help devise improvement action plans, especially for long term.
Forces you to think about market requirements carefully
‘importance-performance’ matrix developed by
Slack (1994).
