How does benchmarking improve the creation of an organizational strategy quizlet?

Works with stakeholders to define strategically aligned project objectives.

These objectives are used to create metrics that will be used to evaluate the project's results. This activity is critical. It is possible for a project to meet its objectives but not have strategic merit. The project's purpose should be clearly related to the organization's strategy.

Defines the project's deliverables. These deliverables may be broken down further into units that represent the essential work to be done to accomplish the deliverables—the work breakdown structure. The work breakdown structure will provide input into determining the required resources [e.g., time, number of team members, special skills and tools, additional expenses such as travel or training]. These will in turn be used to create the project budget.

Creates a project schedule.

The project schedule often represents the best balance of competing and interdependent interests: time, resources, and quality. If time and quality are critical, then resources must be added. If quality and resources are limited, then more time will be required. Various tools have been developed to assist in project scheduling:

Critical path analysis
to find the earliest completion date

uses information about start or mandatory end dates, the logical relationship of tasks* [e.g., whether task C must be completed before task F can begin], and the length of each task to find the earliest completion date [or latest start date].

Gantt charts
Visually represents the scheduling of tasks

primary way to communicate expectations to the team and coordinate activities.

identifies problematic conflicts in activities or gaps that can be exploited to condense the schedule.

Assembles a team

with the requisite skills and communicates to them the project's connection with the organization's strategy, its specific objectives, and their specific roles and responsibilities.

A matrix chart showing the responsibilities of each team member for each task [e.g., responsible, contributing, consulting] can be used to clarify roles and minimize misunderstandings.

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Terms in this set [47]

What is strategic control?

consists of determining the extent to which the organization's strategies are successful in attaining its goals and objectives.

[True/False]: It is during the strategic control process that gaps between the intended and realized strategies [i.e., what was planned and what really happened] are identified and addressed.

True

What two key factors is imperative for strategic control?

Knowing how well the firm is performing and supporting the need for strategic control is organizational and environmental uncertainty.

Who can exert the strategic control?

CEO, the board of directors, or even individuals outside of the top management team

What is the five-step strategic control process?

Step 1: Identify factors to serve as focus of strategic control

Step 2: Develop standards or benchmarks for the factors

Step 3: Measure actual performance both quantitatively and qualitatively

Step 4: Compare measurements with standards or benchmarks

Step 5: Take corrective action as needed to align performance with standards

What is competitive benchmarking?

the process of measuring a firm's performance against that of the top performers, usually in the same industry

What are best practices?

processes or activities that have been successful in other firms— may be adopted as a means of improving performance

Should strategic control occur constantly at various organizational levels and within various functions of the organization

Yes

What is PIMS [Profit Impact of Market Strategy] program?

A database that contains quantitative and qualitative information on the performance of more than 5,000 business units.

What is a common measure of performance for a firm?

Market Share

What is relative market share?

a firm's proportion of total revenues when only a select group of rivals are considered

What is a balanced scorecard?

An approach to measuring performance based on an array of quantitative and qualitative factors, such as ROA, market share, customer loyalty and satisfaction, speed, and innovation.

Informal organization

Interpersonal norms, behaviors, and expectations that evolve when individuals and groups come into contact with one another.

Formal organization

The official structure of relationships and procedures used to manage organizational activity.

What is business process reengineering?

the application of technology and creativity in an effort to eliminate unnecessary operations or drastically improve those that are not performing well.

Crisis

Any substantial disruption in operations that physically affects an organization, its basic assumptions, or its core activities.

Crisis Management

The process of planning for and implementing the response to a wide range of negative events that could severely affect an organization

Crisis management team

a cross-functional group of individuals within the organization who have been designated to develop and plan for worst-case scenarios and define standard operating procedures that should be implemented prior to any crisis event.

What three key points should be highlighted during crisis management planning?

First, organizational leaders should take crisis management seriously. Sooner or later, every organization will face a crisis, and survival may hinge on the organization's ability to manage the situation properly. Second, steps should be taken to prevent or reduce the likelihood of crisis events whenever such action is practicable. Finally, even when a crisis cannot be avoided, it should be handled appropriately. Managing a crisis requires an investment of time attending to specific activities before, during, and after a crisis. How a crisis is managed can have a tremendous effect on the organization in both the short and long term.

What are three inconsistencies of crisis management?

First, some executives view crisis events as largely unpredictable or unavoidable and therefore not worthy of precious managerial time and resources. Second, many managers feel that they lack the time to adequately prepare for potential crises. Third, some leaders recognize the need for crisis planning and are willing to commit the time but simply lack the expertise necessary to make the appropriate preparations.

[True/False] Strategic control should be ongoing and occur throughout the strategic management process.

True

Although strategic control is the final step in the strategic management process, it should be an ongoing process.

[True/False]: The PIMS program is a government-sponsored effort to improve strategic planning effectiveness in the United States.

False

The PIMS program is a database that contains quantitative and qualitative information on the performance of thousands of firms and more than 5,000 business units.

[True/False]: Corrective action should usually, but not always, be taken at all levels if actual performance is less than the standard that has been established.

True

Corrective action should be taken at all levels if actual performance is less than the standard that has been established unless extraordinary causes of the discrepancy can be identified.

[True/False]: Strategic control can be exerted through either the formal or informal organization.

True

Control can be exerted through either the official, formal organization, or through the informal organization—the norms, behaviors, and expectations that evolve when individuals and groups come into contact with one another.

[True/False]: Crisis management refers to efforts made to eliminate the possibility that the organization can be affected negatively by unforeseen events.

False

Crisis management refers to the process of planning for and implementing the response to a wide range of negative events that could severely affect an organization. Crisis management may work to reduce the likelihood of crisis events but cannot eliminate the possibility that they might occur.

[True/False]: Crisis management involves a series of steps that can be taken before a crisis occurs, while it is occurring, and after it has passed.

True

A number of steps can be taken to facilitate crisis management before, during, and after the crisis.

Strategic control is important because __________.
A. it is difficult to know how well the firm is performing without it
B. the organization's environment is uncertain and always changing
C. lower-level managers need an effective means of providing feedback to top management
D. A & B only

D. A & B only

Strategic control helps managers understand how the firm is performing and also assists in addressing changes in an uncertain environment. Strategic control has nothing to do with feedback from lower-level managers.

The strategic control process begins by __________.
A. identifying appropriate performance measures
B. establishing benchmarks
C. measuring performance
D. taking corrective action as needed

A. identifying appropriate

In the first step of strategic control, top management determines the focus of control by identifying internal factors that can serve as effective measures for the success or failure of a strategy, as well as outside factors that could trigger responses from the organization.

The process of measuring a firm's performance against that of the top performers, usually in the same industry, is known as __________.
A. competitive positioning
B. performance measurement
C. benchmarking
D. PIMS analysis

C. Benchmarking

Benchmarking is the process of measuring a firm's performance against that of the top performers—usually in the same industry.

Sources of published information for strategic control available to the public include all of the following except __________.
A. the Wall Street Journal
B. Consumer Reports
C. PIMS data
D. many trade journals

C. PIMS data

PIMS data is available only to firms participating in the PIMS project.

Benchmarks should be __________.
A. broad, not specific
B. associated with the strategy's success
C. outside the firm's control
D. all of the above

B. associated with the strategy's success

Benchmarks should be specific, associated with the strategy's success, and within the firm's control.

Which of the following approaches bases the measurement of performance on an array of quantitative and qualitative factors instead of a single quantitative measure in the organization, such as profitability?
A. balanced scorecard
B. PIMS analysis
C. competitive benchmarking
D. none of the above

A. balanced scorecard

According to the balanced scorecard approach to measuring performance, measurement is based on an array of quantitative and qualitative factors, such as ROA, market share, customer loyalty and satisfaction, speed, and innovation.

[True/False]: The balanced scorecard considers both quantitative and qualitative measures.

True

Planning for largely unpredictable and uncontrollable negative events is most closely associated with
A. strategic planning
B. strategic control
C. organizational control
D. crisis management

D. crisis management

[True/False]: Strategic control consists of determining the extent to which the organization's strategies are successful in attaining its goals and objectives

True

The first step in the strategic control process is
A. establishing standards
B. measuring performance
C. identifying factors that can serve as measures
D. none of the above

C. identifying factors that can serve as measures

Strategic control may be exerted by
A. the CEO
B. the board of directors
C. individuals outside of the top management team
D. all of the above

D. all of the above

[True/False]: Computer sabotage is an example of an organizational crisis

True

[True/False]: Performance measurement should emphasize comparisons to past performance

False

For some companies, emphasizing increases in relative market share in the strategic control process can be counterproductive

True

Which of the following is true about market share?
A. some firms seek a high market share
B. some firms seek a low market share
C. Increases in market share can enhance firm profitability
D. All of the above are true

D. all of the above are true

A possible surrogate measure of firm innovation is
A. ROA or ROE
B. Market share growth
C. Advertising as percentage of sales
D. None of the above

D. None of the above

The final step in the strategic control process is
A. establishing standards
B. measuring performance
C. taking corrective action
D. none of the above

C. taking corrective action

Which of the following is not an example of crisis event?
A. boycott
B. hurricane
C. change in consumer preferences
D. all of the above are crisis events

C. change in consumer preferences

Which of the following is not a source of competitive benchmarking?
A. data from the firm's best quarters in the previous several years
B. innovation
C. product/service quality
D. all of the above are sources

A. data from the firm's best quarters in the previous several years

Which of the following is not a valid means of evaluating firm performance?
A. examine the performance of top managers relative to those in other organizations
B. make a qualitative judgement about changes in service quality
C. compare current results with those in preceding quarters
D. all of the above

A. examine the performance of top managers relative to those in other organizations

Worst-case scenarios should be developed
A. by the crisis management team
B. during the crisis
C. with the assistance of government officials
D. None of the above

A. by the crisis management team

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