Benchmarking and Management Control

Syllabus
Guidelines for final report

Block 1: Introduction to benchmarking measures

1. Performance monitoring and benchmarking in competitive settings

• Competent management matters
• Slides Topic 1
• Topic 1 excel template — Full
• 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 – FULL

4. Business applications of benchmarking

• Slides Topic 4
• Software options
  • R Benchmarking
  • R nonparaeff
• 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
• Additional dataset: 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
• How to design a winning business model
• Cannibalization example
• Google’s organizational architecture (& more)
• Activity: Governance and Corporate Social Responsibility of listed firms (or Stata dataset)
  • Practice task
  • CSR analysis example1, example2
• Cases Topic 5

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
• Seven Myths of Executive Compensation
• (additional) Pay for Performance… But Not Too Much Pay

8. Assessing management practices across the world

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

Group activity: Presentation of Final Reports

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Software resources

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

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Interesting websites

World Management Survey
Interactive Benchmarking

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Optional bibliography

American Productivity and Quality Center. www.apqc.org
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.