Benchmarking and Management Control


Block 1: Introduction to benchmarking measures

1. Performance monitoring and benchmarking in competitive settings

  • Competent management matters
  • Slides Topic 1
  • Topic 1 excel template
  • Bain & Co.: Benchmarking as a top management tool

2. Profitability and productivity changes

  • Review material
  • Review material template
  • Slides Topic 2

Block 2: Multidimensional benchmarking and applications

3. Benchmarking in multidimensional settings

  • Slides Topic 3
  • Productivity measurement in business
  • Topic 3 excel template

4. Business applications of benchmarking

  • Slides Topic 4
  • Software options
  • Data examples (reformat for R)
  • Illustration: Identifying gains from mergers and acquisitions
    • Activity: Assessing M&As of Spanish Savings Banks
    • Practice task on M&A analysis
    • ME’s homework
  • Additional: Technology hardware and equipment industry

Group activity: Presentation of articles

  • Articles to present
  • Guidelines and schedule

Block 3: Organizational architecture and performance control

5. Designing organizational architecture

  • Slides Topic 5
  • Cannibalization example
  • Google’s organizational architecture
  • Activity: Governance and Corporate Social Responsibility
    • Practice task
    • CSR analysis example1; example2; extra_slides
  • Cases Topic 5
  • Additional: Hierarchy and managers matter more than ever

6. Divisional performance evaluation and control

  • Slides Topic 6
  • Cases and numerical problems
  • Blockbuster’s double marginalization problem
  • Rules of the road – double marginalization in Indonesia

7. Measuring internal business processes and employee performance

  • Slides Topic 7
  • Cases and numerical problems; On managers
  • Compensation for performance and control Excel
  • On the folly of rewarding A, while hoping for B
  • AI Chatbot for performance control and evaluation
  • Additional: Seven Myths of Executive Compensation

8. Assessing management practices across the world

  • Slides Topic 8
  • Revisit Topic 1 reading/video: Competent management matters
  • Illustrative data
  • Codebook for dataset
  • Stata code to replicate appendix slides

Schedule for the presentation of final reports


Software resources

R package 1: Benchmark and frontier analysis using DEA and SFA
R package 2: Nonparametric Methods for Measuring Efficiency and Productivity


Interesting websites

World Management Survey
Interactive Benchmarking


Optional bibliography

American Productivity and Quality Center.
Bain and Company “Management Tools and Trends”
*Balk, B.M., 2003. The residual: On monitoring and benchmarking firms, industries, and economies with respect to productivity. Journal of Productivity Analysis 20(1), 5-47.
Bogetoft P., Otto, L., 2011. Benchmarking with DEA, SFA and R. Springer, New York.
*Brickley, J.A., Smith Jr., C.W., Zimmerman, J.L., 2016. Managerial Economics and Organizational Architecture. 6th ed., McGraw-Hill.
Camp, R.C. Benchmarking: The Search for Industry Best Practices That Lead to Superior Performance. Productivity Press, 2006.
Kaplan, R.S., Atkinson, A.A., 2000. Advanced Management Accounting. 3th ed., Prentice Hall, Upper Saddle River.