BBRT Online Knowledge

Abstract: Activity-based costing (ABC) models enable managers to understand product and customer net profitability by providing better methods of allocating overheads. But few challenge the need for these costs in the first place many of which are caused by the controlling bureaucracy. More enlightened managers use ABC’s big brother, activity-based management (ABM), to see whether costs should be incurred at all, but as this paper explains its implementation can be complicated and expensive.

Abstract: Corporate performance management (CPM) systems have the potential to enable leaders to devolve more decision-making to front line teams while keeping themselves informed and in control. But everything depends on how these systems are used. If it is to reinforce top-down control then little will be gained. But if it is used to empower front line teams then CPM will provide a real source of competitive advantage. This paper looks at these issues and how some organizations are maximizing their value from CPM

Abstract: ERP systems have cost large organizations huge sums of money over recent years. But few have delivered the promised benefits. Some of this is down to over hyped expectations and some is down to poor implementation. But the main problem is that too few leaders have spent time getting their organizations ready for these systems in terms of moving to a process-driven structure. Consequently, many ERP systems have simply automated the old hierarchical reporting systems.

Abstract: Benchmarking is a popular tool to drive process improvement by showing managers that they can do better. While learning from others makes sense, managers need to be careful that what they are learning can be applied in their own cultural setting and that they are comparing like-with-like. This paper looks at some of the positives and negatives of benchmarking and advises managers to be wary about adopting this approach with too much enthusiasm.

Abstract: Outsourcing and offshoring, whether we like it or not, are here to stay. While many firms have had problems and some have reversed the process many more are learning how to manage this change well. Outsourcing contractors are also getting their act together and improving their performance. This paper looks at the current state of outsourcing and offers a number of guidelines that managers can follow to generate more value.

Six Sigma is an extension of total quality management (it has been described as TQM on steroids). It refers to a goal of 3.4 defects per million units produced and promises lower costs, higher quality and a more capable workforce. The management focus is on training ‘green belts’, ‘black belts’ and ‘master black belts’. These people learn a whole box full of tools that enable them to implement Six Sigma procedures.

ISO 9000 (and its subsequent series of numbers) is the successor to total quality management. It promises better quality products and more satisfied customers. Most governments and large organizations now demand that their suppliers are ‘ISO9000 certified’ before they will deal with them. However, it has a reputation for being bureaucratic and lacking practical application as it imposes rigid standards (‘one size fits all’ models) not just on product development but also on a company’s business management processes.

Loyalty management is the process of managing and measuring customer loyalty and ultimately improving the long-term performance of the business. But loyalty is often confused with satisfaction. Recent research has exposed the “customer satisfaction” industry with the huge sums it spends on research and satisfaction surveys as a sham. Recent research into measuring loyalty offers companies’ new opportunities to turn loyalty management into a winning formula. But few companies have heard the message or reaped the benefits.

Large organizations worldwide have spent billions on CRM systems over the past decade or so on the assumption that knowing more about customer behaviour will help them to increase loyalty and profitability. But too many of these systems have delivered disappointing results (many have become glorified customer databases). This paper looks at the reasons for these failures and discusses how managers can learn from them.
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Knowledge sharing and better collaboration is high on every CEO’s wish list of organizational improvements and many organizations have made significant investments in technology to enable this to happen. But most leaders have been disappointed with the results. The trouble is that many of the barriers are connected less with technology and more with the command and control mindset and the management systems that support it.