Presented By:Mriganka Chakraborty(46) Saurav Dey(66)

Introduction
While service concept defines the nature of

service to be provided, the performance objectives define the competitive or strategic priorities for the operations. Performance objectives are also the basis for development of performance measurement systems and a key way of linking operations performance measures to strategy.


Competitive organizations have to compete on many different criteria which might include: Price Quality Availability Reliability Speed of service Flexibility Range of services New service development Uniqueness


Two dimensions importance and performance can be used to help operations manager prioritize these objectives so that they know where it is appropriate to spend time, effort and money.

Importance
The importance of a factor can be assessed in terms of its importance to customers(internal or external). Three categories of importance are: Qualifiers Order Winners Less Important Factors

Qualifiers
May not win business but play an important part in retaining business, by which we mean customers or sources of fundings. If performance falls below a certain point compared to other organizations, business may be lost. An internet service provider may lose customers if access to its network is slower or more difficult than through its competitors.

Order Winners
They maintain and win new business, funds or customers for the organization. These are special qualifiers that the organization has chosen as part of its strategy to use as a means of securing an advantage, or a point of differentiation, over other organisations. An ISP may choose price as its order winner, for example. By making its service free to its customers or even providing free phone access to its network, an ISP may gain a significant advantage over its competitors and increase its customer base.

Less Important Factors

These are relatively unimportant but should not be ignored because they may become as source of advantage at some future point.

Order Winners(Attractors)

Strong Medium Weak

1 2 3 1 2

Crucially important to attract business Important to attract business Useful for attracting new business Vital for retention Important for retention Useful for retention Not usually important Rarely considered important Not at all important

Qualifiers(retainers)

Strong Medium

Weak Less Important Strong

3 1

Medium

Weak

Performance
It is the second dimension for assessing performance objectives, is concerned with the performance of each objective against other or competing organizations. A nine point scale can be used to assess relative performance of any of the factors

Better than others

Strong Medium Weak

1 2 3 1 2 3 1

Considerably better than others Clearly better than others Somewhat better than others Marginally better than others The Same as Others Marginally worse than others Somewhat Worse than others Usually Worse than others Considerably Worse than others

The Same as Others

Strong Medium Weak

Worse than others

Strong

Medium

Weak

The Importance Performance Matrix


By applying the importance performance matrix operations managers can translate strategic into clear priorities for the operation, identifying where limited resources may best be spent to support the organizations strategic intentions.

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