8.2. Activity-based techniques
Over the past decade, activity-based techniques have gained a high profile as methods that can potentially help managers understand their firm’s cost structures and hence redress the alleged shortcomings of traditional costing methods. However, the success of these techniques has been largely anecdotal, and some commentators have questioned their ability to deliver the promised benefits (Johnson, 1992 and Player & Keys, 1995). There are several noteworthy findings in 8.3. Performance measurement and benchmarking
For the total sample, balanced performance measures were ranked as providing the second highest benefits and employee-based measures ranked fourth (see Table 3). A possible association between these two techniques and team-based structures is apparent from the cluster analysis, where C1 and C5 had relatively high rankings for these variables. In C1 these combined with other variables to effect high performance. However, in C5 this combination was not related to high performance, possibly as other management techniques (apart from quality systems and team-based structures) provided low benefits.
Benchmarking has been proposed as a mechanism to identify and encourage best practice in a wide range of areas. Across the sample, benchmarking was ranked as providing the third greatest benefits. The analysis indicated that in C1 and C3, benchmarking ranked first and second. For the relatively poor performing C5, benchmarking ranked fifth across clusters. This suggests that benchmarking can assist in successfully developing strategies emphasizing either customer service or low price. Also, in C3, benchmarking may have helped in attaining relatively high benefits, compared with C5, from improving existing processes, manufacturing