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
  • 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
    • R nonparaeff
    • R Benchmarking
  • Data examples (reformat for R)
  • Illustration: Identifying gains from mergers and acquisitions
    • Activity: Assessing M&As of Spanish Savings Banks
  • Additional dataset: Technology hardware and equipment industry
    • Practice task

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 examples: paper1, paper2
  • 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: Nonparametric Methods for Measuring Efficiency and Productivity
R package 2: Benchmark and frontier analysis using DEA and SFA

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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.