Marketing Led Organisations
Ken Roberts (Forethought)
Darren Stein (Optus)
This paper centres on the various performance-measurement orientations a firm might adopt. Should an organisation's measurement focus have a production orientation, a customer orientation, a market orientation or a combination of these?
In reality, production, customer and market orientation are not mutually exclusive. Indeed, many organisations simultaneously engage in all three orientations. For example, in an organisation's manufacturing operations a production orientation might be applied in the form of the Six Sigma mantra. In the contact centres, a customer orientation might be applied in the form of customer satisfaction measurement and within the marketing and sales team, a market orientation might be applied in the form of customer value analysis.
Intuitively the primary orientation should be linked to the primary objective of the business. Faultless production, retention of customers or the acquisition of new business determines the principal orientation. All too often however, the authors have observed organisations incorrectly matching their business objectives with their measurement programmes. Perhaps the most common folly is applying Six Sigma or the Net Promoter Score (NPS) hoping to increase market share. The objective of this paper is to provide some clarity in selecting an appropriate performance-measurement orientation.
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