So have many companies just as sports teams have increasingly relied on extensive quantitative investigations. (In this informative article, the writers use the term "balanced benchmarking" to denote DEA.) The technique enables businesses to benchmark and locate best practices that are not observable through other commonly used management methodologies. Balanced benchmarking may be used by anyone with Microsoft Excel now, but it was not always so easy. Balanced benchmarking was an academic instrument for handling and measuring relative efficiency of peer organizations, when it was initially introduced in the 1980s. Balanced benchmarking concurrently considers the multiple resources used to produce multiple services, along with the quality of the services supplied.
It also provides managers using a complex mechanism to measure the performance of service providers that are different -comparing, for example, the Tokyo and London offices of a worldwide advertising agency -by going well beyond petroleum metrics and ratios such as account and profitability billings per employee. A company can identify its least efficient offices or business units, and it can evaluate the size of ineffectiveness and explore potential trajectories for improvement. Furthermore, executives can evaluate the top-performing units, evaluate the most effective practices and transfer that knowledge that is valuable throughout the organization. Balanced benchmarking empowers businesses to test their premises, particularly before implementing initiatives that might mistakenly be counterproductive.
PUBLICATION DATE: July 01, 2013 PRODUCT #: SMR455-HCB-ENG
This is just an excerpt. This case is about LEADERSHIP & MANAGING PEOPLE
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