Strategic Marketing: Planning and Control, Third Edition

1 Reviewing: The performance of individuals, or groups, should be

reviewed continuously as part of normal management activity.

Additionally, there may be a formal review which summarises activity.

Try to use objective criteria as a basis of review. Such criteria should be

communicated and agreed in advance. Work and personal develop-

ment plans should be considered in tandem with set criteria.

2 Feedback: Feedback, relating to performance, is based on actual results,

or observed behaviour. Do not just focus on the negative but try to give

credit where it is due. When giving feedback, be specific and describe

rather than judge results. By reference to specific actions and behav-

iours, managers can more readily focus on key aspects of improvement.

3 Counselling: Performance appraisal should be positive in nature. In

order to build on strengths and overcome weaknesses, management

may well have to counsel staff. This is particularly relevant to areas of

underperformance. Counselling needs to consider performance, not

personality, and invite a degree of self-appraisal. Aim to identify and

agree problems then choose required actions.

■ Benchmarking

In order to be ‘the-best-you-can-be’, it pays to compare yourself with lead-

ing performers. Benchmarking provides a method of enabling such com-

parisons to take place.

Benchmarking is defined as:

A systematic and on-going process of measuring and comparing an

organisation’s business processes and achievements against acknow-

ledged process leaders and/or key competitors, to facilitate improved

performance.

However benchmarking is more than just copying. The process is about

continuous improvement and becoming a learning organisation. The

credo is one of adaptation rather than adoption. Ideas, practices and

methods have to be screened and adapted to specific business situations.

Benchmarking falls into three general areas:

1 Competitive analysis: Reviewing competitor’s activities, strategy and

operations so we can improve our performance.

2 Best practice: Determining the best way of undertaking an activity. This

could involve examining activities in unrelated areas of business or

industries. For example, a computer manufacturer could benchmark a

mail-order retail company in order to improve its stock control system.

Equally, best internal practice could be identified and spread to other

units or departments within the organisation.

3 Performance standards: Benchmarks can be performance standards.

Performance indicators become targets to be met or surpassed. As way

of illustration – if the average industry conversion of enquiries into

286 Strategic Marketing: Planning and Control