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Improving performance - Coggle Diagram
Improving performance
Importance performance matrix
Successful organisations will match their capabilities to market requirements
No good to strive in ways that customer does not care
Troublesome to underperform in things that matter to customers
Has a lot of information on markets, market segments and operations performance
Can analyse capabilities and match them with market requirements
Positively influence other aspects of performance
Deliver quickly
Deliver reliably
Slacks' (1994) ‘importance-performance’ matrix
Four stage process
spots gaps between
market requirements
organisations actual performance
Stage 1
judge the importance of performance measures to customers
specific to each market segment
often assessed through market research
existing market knowledge
other company information
organisations can assess which measures might provide a competitive
advantage
importance scale 1- 10
Operations
strategy
Clear link longer term
improvement activities
Spot gaps between
market requirements
How important?
improvement activites
market requirements
Stage 2
Judge the performance against competitors
assessed relative to their competition
importance scale 1- 10
Stage 3
Match performance against characteristics
once the importance and performance has been established of each priority
can create the importance- performance matrix
Four zones
'Improve' zone
shows some scope to improve an operation
Competitors could be slightly better
impact on market share
impact on repeat levels of customer
Urgent action
operation underperforms in
areas of importance to the customer
business is lost so needs to improve the following
performance to gain customers
and improve competitiveness
'Appropriate' zone
importance matched to the relative performance market
no current need to make improvements or changes
'Excess' zone
high performance but not important to customers
trade better performance elsewhere
spend less resource
Stage 4
can be used to direct improvement
activity
shows when urgent action is needed
or where the operations performance can
be deliberately lowered to save on resource
Performance objectives
Devise a list based on the market
Then create an importance scale with a ratings number from 1- 7 for example
and then a performance scale with a ratings
Significantly leverage cost