Learning and growth
Cartons processed per employee hour Employee satisfaction Employee Turnover
5
The Analytical Hierarchical Process (AHP)
1=equal importance to both elements in the matrix 3=moderate importance of one element compared with another 5=strong importance of one element compared with another
Case Study
Northlake Bookstore: Benchmarking for Performance Evaluation
1
Content
• Ⅰ.Case overview • Ⅱ.Strategic objectives of Northlake Bookstore • Ⅲ.Benchmarking analysis from four perspectives
profitability
4
From strategy to action
--on the basis of BSC
Level 0 Objectives
Strategy Objective
Level 1 Perspectives
Level 2 Indicators
Financial
Gross margin ratio Total operation expenses ratio Sales per sq.ft.of space Ratio: selling to storage space Sales per FTE employee / student
Textbook sales for this fall had decreased from the prior fall sales
In September 2004 What to do
•Employ benchmarking analysis to figure out the reasons behind the poor performance
of BSC • Ⅳ.Summary of strengths & weaknesses • Ⅴ.Three steps for improvement
2
Ⅰ.Case Biblioteka verviewWhereProblem
In Northlake Bookstore
When
Who
Wendy-Manager Chuck-Boss
To contribute to the overall profitability of the University as well as being efficient and controlling costs.
To achieve high
To attain high
customer satisfaction
Strategic Objectives
Excellent Service
To provide service excellence for the students, faculty, staff, alumni and guests of the University
A profit center
row totals by the aggregate.
Learning and growth
Total
Normalized average*
5
9.33
5
12
3
4.67
1
1.73
Aggregate 27.73
0.34 0.43 0.17 0.06 1.00
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Qualitative analysis: • Northlake Bookstore faces threat from online textbook vendors • Donations and gifts to the University were down
•Then identify how to sustain the excellence and improve the inferior performance
•Further more, determine a long-term action plan for improvement
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Ⅱ.Strategic Objectives of Northlake Bookstore
Customer
Customer satisfaction Percentage of textbooks available First Day Customer Queuing time at Registers
Internal process
Inventory turnover Textbook sell-through Days textbooks in Receiving area Number of hrs store is open per Week
Internal process
Financial
Customer
Learning and growth
Internal process
Financial
1
1/3
3
1
1/3
1/3
1/5
1/5
Customer
3 3 1 1/3
*Normalized averages are calculated by dividing the
Quantitative analysis: The result of hierarchical
analysis shows Financial is the most important measure to realize the strategy.
Thus, in a short term, we decide to pay more attention on improving the profitability of Northlake, i.e. to emphasize its role as a profit center.