Management Learning Not Management Control: The True Role of Performance Measurement SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Management Learning Not Management Control: The True Role of Performance Measurement
The true role of performance measurement is to provide a means of management learning, rather than simply a means of management control. It is widely believed performance measures are essential if managers are to track progress and establish whether their organization is moving in the desired direction. In essence, this is the basic philosophy that underpins ideas of management control. However, the power of measurement extends far beyond simply tracking progress to three other areas. First, the act of deciding what to measure helps clarify the organization's strategy. Second, clear measures, underpinned by an explicit theory of how the business works, assist in the process of communicating strategy and achieving organizational alignment. Third, measurement data can be used to generate performance insights. These, in turn, can be used to challenge the tacit or explicit assumptions that are held about how the business operates. Makes explicit the hidden potential of performance measurement by highlighting how measurement systems can contribute to the organization's systems for management learning as well as management control. Also illustrates how more value can be extracted from the data that exist in organizations than has traditionally been recognized.
Swot Analysis of "Management Learning Not Management Control: The True Role of Performance Measurement" written by Andy Neely, Mohammed Al Najjar includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Measurement Explicit facing as an external strategic factors. Some of the topics covered in Management Learning Not Management Control: The True Role of Performance Measurement case study are - Strategic Management Strategies, Corporate governance, Managing people, Performance measurement and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Management Learning Not Management Control: The True Role of Performance Measurement casestudy better are - – banking and financial system is disrupted by Bitcoin and other crypto currencies, geopolitical disruptions, increasing government debt because of Covid-19 spendings, increasing household debt because of falling income levels, there is increasing trade war between United States & China, challanges to central banks by blockchain based private currencies, increasing inequality as vast percentage of new income is going to the top 1%,
customer relationship management is fast transforming because of increasing concerns over data privacy, there is backlash against globalization, etc
Introduction to SWOT Analysis of Management Learning Not Management Control: The True Role of Performance Measurement
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Management Learning Not Management Control: The True Role of Performance Measurement case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Measurement Explicit, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Measurement Explicit operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Management Learning Not Management Control: The True Role of Performance Measurement can be done for the following purposes –
1. Strategic planning using facts provided in Management Learning Not Management Control: The True Role of Performance Measurement case study
2. Improving business portfolio management of Measurement Explicit
3. Assessing feasibility of the new initiative in Leadership & Managing People field.
4. Making a Leadership & Managing People topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Measurement Explicit
Strengths Management Learning Not Management Control: The True Role of Performance Measurement | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Measurement Explicit in Management Learning Not Management Control: The True Role of Performance Measurement Harvard Business Review case study are -
Diverse revenue streams
– Measurement Explicit is present in almost all the verticals within the industry. This has provided firm in Management Learning Not Management Control: The True Role of Performance Measurement case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Effective Research and Development (R&D)
– Measurement Explicit has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study Management Learning Not Management Control: The True Role of Performance Measurement - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Cross disciplinary teams
– Horizontal connected teams at the Measurement Explicit are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Learning organization
- Measurement Explicit is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Measurement Explicit is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Management Learning Not Management Control: The True Role of Performance Measurement Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Innovation driven organization
– Measurement Explicit is one of the most innovative firm in sector. Manager in Management Learning Not Management Control: The True Role of Performance Measurement Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Training and development
– Measurement Explicit has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Management Learning Not Management Control: The True Role of Performance Measurement Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Operational resilience
– The operational resilience strategy in the Management Learning Not Management Control: The True Role of Performance Measurement Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Superior customer experience
– The customer experience strategy of Measurement Explicit in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Strong track record of project management
– Measurement Explicit is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Ability to recruit top talent
– Measurement Explicit is one of the leading recruiters in the industry. Managers in the Management Learning Not Management Control: The True Role of Performance Measurement are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Analytics focus
– Measurement Explicit is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Andy Neely, Mohammed Al Najjar can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Ability to lead change in Leadership & Managing People field
– Measurement Explicit is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Measurement Explicit in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Weaknesses Management Learning Not Management Control: The True Role of Performance Measurement | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Management Learning Not Management Control: The True Role of Performance Measurement are -
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Measurement Explicit is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Management Learning Not Management Control: The True Role of Performance Measurement can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
High cash cycle compare to competitors
Measurement Explicit has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Management Learning Not Management Control: The True Role of Performance Measurement, is just above the industry average. Measurement Explicit needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
High bargaining power of channel partners
– Because of the regulatory requirements, Andy Neely, Mohammed Al Najjar suggests that, Measurement Explicit is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Low market penetration in new markets
– Outside its home market of Measurement Explicit, firm in the HBR case study Management Learning Not Management Control: The True Role of Performance Measurement needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Management Learning Not Management Control: The True Role of Performance Measurement HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Measurement Explicit has relatively successful track record of launching new products.
Products dominated business model
– Even though Measurement Explicit has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Management Learning Not Management Control: The True Role of Performance Measurement should strive to include more intangible value offerings along with its core products and services.
Slow to strategic competitive environment developments
– As Management Learning Not Management Control: The True Role of Performance Measurement HBR case study mentions - Measurement Explicit takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Increasing silos among functional specialists
– The organizational structure of Measurement Explicit is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Measurement Explicit needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Measurement Explicit to focus more on services rather than just following the product oriented approach.
Skills based hiring
– The stress on hiring functional specialists at Measurement Explicit has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Lack of clear differentiation of Measurement Explicit products
– To increase the profitability and margins on the products, Measurement Explicit needs to provide more differentiated products than what it is currently offering in the marketplace.
Opportunities Management Learning Not Management Control: The True Role of Performance Measurement | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Management Learning Not Management Control: The True Role of Performance Measurement are -
Creating value in data economy
– The success of analytics program of Measurement Explicit has opened avenues for new revenue streams for the organization in the industry. This can help Measurement Explicit to build a more holistic ecosystem as suggested in the Management Learning Not Management Control: The True Role of Performance Measurement case study. Measurement Explicit can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Using analytics as competitive advantage
– Measurement Explicit has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study Management Learning Not Management Control: The True Role of Performance Measurement - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Measurement Explicit to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Buying journey improvements
– Measurement Explicit can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Management Learning Not Management Control: The True Role of Performance Measurement suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Developing new processes and practices
– Measurement Explicit can develop new processes and procedures in Leadership & Managing People industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Measurement Explicit is facing challenges because of the dominance of functional experts in the organization. Management Learning Not Management Control: The True Role of Performance Measurement case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Measurement Explicit to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Better consumer reach
– The expansion of the 5G network will help Measurement Explicit to increase its market reach. Measurement Explicit will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Leadership & Managing People industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Measurement Explicit can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Measurement Explicit can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Measurement Explicit in the consumer business. Now Measurement Explicit can target international markets with far fewer capital restrictions requirements than the existing system.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Leadership & Managing People industry, but it has also influenced the consumer preferences. Measurement Explicit can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Measurement Explicit in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Leadership & Managing People segment, and it will provide faster access to the consumers.
Leveraging digital technologies
– Measurement Explicit can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Loyalty marketing
– Measurement Explicit has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Threats Management Learning Not Management Control: The True Role of Performance Measurement External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Management Learning Not Management Control: The True Role of Performance Measurement are -
Stagnating economy with rate increase
– Measurement Explicit can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Easy access to finance
– Easy access to finance in Leadership & Managing People field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Measurement Explicit can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Measurement Explicit will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Increasing wage structure of Measurement Explicit
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Measurement Explicit.
Consumer confidence and its impact on Measurement Explicit demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Measurement Explicit.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Measurement Explicit with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Measurement Explicit in the Leadership & Managing People sector and impact the bottomline of the organization.
Shortening product life cycle
– it is one of the major threat that Measurement Explicit is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Management Learning Not Management Control: The True Role of Performance Measurement, Measurement Explicit may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Leadership & Managing People .
Technology acceleration in Forth Industrial Revolution
– Measurement Explicit has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Measurement Explicit needs to keep up with the evolution of technology in the Leadership & Managing People sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Weighted SWOT Analysis of Management Learning Not Management Control: The True Role of Performance Measurement Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Management Learning Not Management Control: The True Role of Performance Measurement needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Management Learning Not Management Control: The True Role of Performance Measurement is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Management Learning Not Management Control: The True Role of Performance Measurement is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Management Learning Not Management Control: The True Role of Performance Measurement is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Measurement Explicit needs to make to build a sustainable competitive advantage.
Feel free to connect with us if you need business research.
You can download Excel Template of Case Study Solution & Analysis of Management Learning Not Management Control: The True Role of Performance Measurement