Strategy and Performance 3 volume set

Citation

Narasimhan, K. (2003), "Strategy and Performance 3 volume set", Measuring Business Excellence, Vol. 7 No. 1. https://doi.org/10.1108/mbe.2003.26707aae.010

Strategy and Performance 3 volume set

Strategy and Performance 3 volume set

M. Bourne, J. Mills, A. Neely, K. Platts, and H. Richards,Cambridge University Press,ISBN 0 521 75032 6 (paperback),2002, £75.00, $120.00

This three-volume set on Strategy and Performance is the outcome of research funded by the Engineering and Physical Sciences Research Council and a number of industrial organizations. The set is authored by two staff (Mike Bourne and Andy Neely) based at the Centre for Business Performance at the Cranfield School of Management, and three (John Mills, Ken Platts, and Huw Richard), who work at the Institute for Manufacturing at the University of Cambridge.

The first volume (ISBN 0-521-75029-6) entitled "Creating a Winning Business Formula", and written by Mills, Platts, Neely, Richards and Bourne, comprises four sections covered in 115 pages. In this volume, the authors clearly explain how to review current processes and procedures and then develop, present and implement new manufacturing strategies both at the organizational and operational levels. In Section 1, the authors define the scope and levels of strategy, and describe how to recognize an organization's strategy and the decision areas for developing effective manufacturing strategy. Finally, with the aid of a flow diagram, outline the six-part process developed by the authors. In Section 2, they touch upon the role of a facilitator and summarize the pros and cons of using external and in-house facilitators. In Section 3 a methodology for comparing market requirements and achieved performance on key criteria such as delivery, product features, quality, and flexibility is given.

In Section 4, an explanation is given of the following six steps of the practical approach: Identifying customer-product groups; Agreeing a balanced set of business objectives; Identifying current manufacturing strategy; Assessing current strategy; Aligning actions with business objectives; and Embedding strategy-making into the culture. The balanced set of objectives are based on a modified balanced score card which includes a suppliers perspective, in addition to financial, customer, internal, and innovation and learning perspectives. For each of the six steps, aims and objectives are spelt out and reasons as to why they are important are listed and how they can be effected are explained with the aid of examples. Supporting material is provided on a CD included with this volume.

Neely, Bourne, Mills, Platts, and Richards have authored the second volume ("Getting the Measure of Your Business"). In this volume (ISBN 0-521-75031-8, 143 pages), the attention is turned to the key topic of designing and implementing performance measurement systems, such as the balanced scorecard, covered in four sections. In Section 1 are addressed issues such as what is involved in the new process, how long will it take, the amount of resources consumed, and the benefits accrued. Sections 2 and 3 are very short ones, which respectively provide guidance on the selection of a facilitator and launching the process. Section 4 (102 pages) is the workbook on "Getting the measure of your business". First the authors explain in five parts how to identify, design and implement the top-level performance measures of a business; and then in the next five parts describe how to cascade the measures derived through the organization and develop action plans and local performance measures. In each part a number of aims are stated and for each aim its importance and how to achieve it are explained with the aid of diagrams, where necessary; and finally tips for effective implementation are provided using blank and completed worksheets (which are also available on the CD).

The third volume (179 pages) is devoted to dealing with "Competing Through Competencies" (ISBN 0-521-75030-X) and Mills, Platts, Bourne and Richards have written this volume. When and how to use this volume is explained first and then the authors explain in nine chapters how to identify an organization's strengths and weaknesses by conducting a resource analysis, to identify the firm's unique resources that would give it a more sustainable competitive advantage. As the authors point out at the outset, this is not a textbook dealing with theory but a book that explains the resource-based theory and tools developed and tested by the authors.

In Chapter 1, the resource-based ideas and the definitions used are explained. In Chapter 2, resource and competence analysis using management teams is explained. The pros and cons of the methodology explained in Chapter 2 are reviewed in Chapter 3, and the need for a more detailed bottom-up method to get a detailed "insight" is explained. Chapters 4 to 6 are devoted to explaining in detail the three steps of the new approach termed the "Insight approach". In each of the chapters 4 to 6, questions are posed, tools to address the questions are provided supported by illustrative examples and insights into the development of the tools. In Chapter 7, the authors succinctly explain how to build a resource and competence base and provide a toolkit to decide on the type of improvement required, to identify appropriate mechanisms for improvement, and select the improvement mechanism to be used and how to implement the decision.

A new competence-based performance measurement framework to overcome the drawbacks of conventional performance measurement systems forms the subject of Chapter 8. How this new framework is used in practice is illustrated using three case studies: "Measuring an order winning competence", "Measuring support processes – recruitment and development", and "Measuring the order fulfillment competence". In the concluding chapter the authors summarize and discuss four topics: health warnings on using this approach; situational factors that are suited to the adoption of this approach; the possible impact of fall in stock-market forcing managers to adopt resource-based strategies; and the future role of resource-based ideas.

This well written series based on extensive research is a valuable addition to the new area of business performance measurement, in pursuit of excellence.

K. NarasimhanLearning and Teaching Fellow Bolton Institute, UK