DOCSLIB.ORG

The Customer Differential

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
The Customer Differential Concentrated Knowledge™ for the Busy Executive • www.summary.com Vol. 23, No. 11 (3 parts) Part 3, November 2001 • Order # 23-28 FILE: MANAGEMENT STRATEGIC ® The Complete Guide to Implementing CRM THE CUSTOMER DIFFERENTIAL THE SUMMARY IN BRIEF One company took 12 months and 12 employees to institute a data warehousing project as part of a corporate-wide customer relationship man- agement (CRM) effort, without any appreciable results. Another company By Melinda Nykamp was stymied by the incredible complexities of the processes needed in its CRM effort and had to put the effort on hold almost a year before the right data collection and storage systems were in place. Any company that has CONTENTS begun to implement a CRM plan knows it can be a time-consuming task Defining Customer involving a multitude of business processes and infrastructure dependen- Relationship Management cies; much broader organizational change than initially thought; and exten- Pages 2, 3 sive learning of customer-centric and data-driven marketing concepts. CRM: An Integrated Nevertheless, although it might be easy to dismiss CRM as just another Approach management fad, there are some compelling reasons to take another look at Page 3 this trend. CRM Requires Complete First, customers — aided by the technology of the Internet, in particular Transformation — have much more power and influence than ever before. Customers today Of the Company Pages 3, 4 have higher expectations on service, price and delivery. Second, advances in computer systems are giving companies the ability The Case for CRM to collect and analyze specific, up-to-the-minute customer data. Page 4 In this summary, you will learn how to transform the five fundamental Implementing CRM areas of your company — business focus, organizational structure, business Pages 5, 6 metrics, customer interactions and technology — from a production orienta- CRM and Technology tion to a customer-focused orientation. Page 6 You will also learn how to: Internal Development vs. ✓ Recognize the four stages of CRM. Outsourcing Page 6 ✓ Measure the effectiveness of your CRM program. Changing Your Metrics ✓ Calculate the ROI of CRM. Pages 6, 7, 8 ✓ Identify barriers to successful CRM implementation. The Lifetime Value The Customer Differential is about differentiating your company by Of Your Customer meeting the stringent expectations of today’s customers. Page 7 Here’s how. Measuring the ROI of CRM Page 8 Published by Soundview Executive Book Summaries, 10 LaCrue Avenue, Concordville, Pennsylvania 19331 USA ©2001 Soundview Executive Book Summaries • All rights reserved. Reproduction in whole or part is prohibited. THE CUSTOMER DIFFERENTIAL by Melinda Nykamp — THE COMPLETE SUMMARY Defining Customer To have a successful relationship with customers, you must understand what services are important to your Relationship Management customers, which products they want to buy and how Although the term “customer relationship manage- and when they prefer to interact with you (e-mail, direct ment” (CRM) is often equated with the old saying, “the mail, telephone, in-person). You can gather this infor- customer is always right,” it is much broader. True CRM mation in the following ways: is a revolutionary, enterprise-wide refocusing of how you ● Perform Customer Profiling. Gather demographic develop and maintain dialogues with your customers. It and geographic information for consumers; for busi- requires a careful focus on providing the best value to nesses, gather information such as number of employees your customers based on how you communicate with and company revenues. them, how you market to them and what levels of serv- ● Segment Customer Groups. This is a practical ice you can provide—without forgetting the traditional place to begin one-to-one marketing. Identify unique areas of product, price, promotion and distribution. groups of customers through similar characteristics rela- Most important, CRM is not just a technology solu- tive to the purchase and use of your products. As you tion. While the Internet and other advances in technolo- continue to narrow segments of customers, you get clos- gies have enabled companies to obtain vast amounts of er to actual one-to-one marketing. customer data, these same technologies also have given ● Conduct Primary Research. You gain insight into more power to consumers, who now demand much your customers’ needs and attitudes toward your compa- higher levels of service, greater choice in product fea- ny’s products and services and about your organization tures and the lowest prices. Businesses need to know as a whole. which data are the most important to collect and how to ● Rank Each Customer’s Value to Your Company. best assimilate and utilize this information while at the No customer is created equal. Using the type of infor- same time providing personal “mass customization” to mation listed here, you can more specifically identify individual customers. This new paradigm calls for a which customers or groups of customers offer the most new way of looking at and interacting with customers. profitability for your company. Four Stages of the CRM Process Develop and Customize CRM is a continual process that involves four inter- In the product-oriented 20th century, manufacturers linked stages: built products, defined distribution networks and then 1. Acquire and Retain. searched for customers. In the customer-focused 21st 2. Understand and Differentiate. century, companies must let the customer drive the 3. Develop and Customize. choice of product and distribution channel. The most 4. Interact and Deliver. successful organizations are those that base products As this process evolves, you will be able to add levels (continued on page 3) of sophistication to your customer strategies. This ongo- ing, enterprise-wide effort yields unique sustainable competitive advantages that can help increase customer loyalty that will improve your company’s bottom line. The author: Melinda Nykamp is the founder, president and CEO of Nykamp Consulting Group, a professional Understand and Differentiate services firm with offices throughout North America. Although business starts with the acquisition of cus- Copyright© 2001 by Melinda Nykamp. Summarized by tomers, any successful CRM initiative is dependent on a permission of the publisher, AMACOM, 1601 Broadway, solid understanding of customers. Therefore, the first New York, NY. 212 pages. $25.00. 0-8144-0622-X. stage of the continual process that we will examine is how to understand and differentiate customers. Published by Soundview Executive Book Summaries (ISSN 0747-2196), 10 LaCrue Avenue, Concordville, PA 19331 USA, a division of Concentrated Knowledge Corporation. Publisher, George Y. Clement. V. P. Publications, Maureen L. Solon. Editor-in-Chief, Christopher G. Murray. Published monthly. Subscriptions: $195 per year in U.S., Canada & Mexico, and $275 to all other countries. Periodicals postage paid at Concordville, PA and additional offices. Postmaster: Send address changes to Soundview, 10 LaCrue Avenue, Concordville, PA 19331. Copyright © 2001 by Soundview Executive Book Summaries. Available formats: Summaries are available in print, audio and electronic formats. To subscribe, call us at 1-800-521-1227 (1-610-558-9495 outside U.S. & Canada), or order on the Internet at www.summary.com. Multiple-subscription discounts and Corporate Site Licenses are also available. Soundview Executive Book Summaries® 2 The Customer Differential — SUMMARY Defining Customer Relationship Management CRM: (continued from page 2) An Integrated Approach and services and distribution channels on customer ✓ CRM is not exclusively a marketing initiative. But needs and wants. CRM can involve customer-facing and data-driven For example, financial services providers now offer marketing and can result in more effective market- ATM and electronic banking, which benefits both the ing campaigns. provider and the customer. In the travel industry, wire- ✓ CRM is not exclusively a sales initiative. Sales is less-based reservations and electronic ticketing offer just one piece of the CRM puzzle, and a CRM customers flexibility. focus can improve sales strategies, account man- Interact and Deliver agement and SFA efforts. ✓ CRM is not exclusively a service initiative. Rather, Companies now have many different customer touch- service is merely one functional area of a CRM points—from retail stores to catalogs to Web sites — effort. and creating a common look and feel and assuring supe- ✓ rior service at each site is an essential step in CRM. CRM is not exclusively a technology initiative. Most of these touchpoints have been built around the While IT and IS are big parts of CRM, it is impor- tant to remember that they are simply the tools concept of efficiency for the company, not for creating that allow a company to focus more narrowly on two-way interaction with customers. In fact, although its customers. the term “interactive” is usually associated with online initiatives, most Web sites are less interactive than a bricks-and-mortar store staffed by salespeople. To foster relationships with customers at the various CRM Requires Complete customer touchpoints, companies must make sure: Transformation of the Company ● that all departments have ready access to relevant CRM is an enterprise-wide effort, involving nothing customer information; and less than the transformation of your company from the ● that all employees are trained how to use this infor- traditional product/transaction
Load more

Recommended publications
  • Employee Management Techniques Transient Fads Or Trending Fashions
    Employee-management In this theory development case study, we focus on the Techniques: Transient relations across recurrent waves in the amount and kind of language promoting and diffusing, and then demoting Fads or Trending and rejecting, management techniques—techniques for Fashions? transforming the input of organizational labor into organi- zational outputs. We suggest that rather than manifesting Eric Abrahamson themselves as independent, transitory, and un-cumulative Columbia University fads, the language of repeated waves cumulates into Micki Eisenman what we call management fashion trends. These trends are protracted and major transformations in what man- Baruch College agers read, think, express, and enact that result from the accumulation of the language of these consecutive waves. For the language of five waves in employee-man- agement techniques—management by objectives, job enrichment, quality circles, total quality management, and business process reengineering—we measure ratio- nal and normative language suggesting, respectively, that managers can induce labor financially or psychologically. The results reveal a gradual intensification in the ratio of rational to normative language over repeated waves, sug- gesting the existence of a management fashion trend across these techniques. Lexical shifts over time, howev- er, serve to differentiate a fashion from its predecessor, creating a sense of novelty and progress from the earlier to the later fashions. Scholars have recognized for a long time now that so-called fads or fashions affect management techniques (Sumner, 1959), those linguistic prescriptions for how to transform organizational inputs into organizational outputs (Ghaziani and Ventresca, 2005). The “balanced score card” label, for exam- ple, denotes language prescribing behaviors necessary to transform certain financial and non-financial results into multi- dimensional measures of organizational performance.
    [Show full text]
  • Learning Organization: a Fine Example of a Management Fad | BEH
    Learning organization: a fine example of a management fad | BEH: www.beh.pradec.eu Peer-reviewed and Open access journal BEH - Business and Economic Horizons ISSN: 1804-5006 | www.academicpublishingplatforms.com Volume 14 | Issue 3 | 2018 |pp.477-487 The primary version of the journal is the on-line version DOI: http://dx.doi.org/10.15208/beh.2018.34 Learning organization: A fine example of a management fad Slobodan Adžić Arab Open University, Kuwait corresponding e-mail: sadzic[at]aou(dot)edu{d}.kw address: Arab Open University, 6 St, Al-Ardiya, Kuwait Abstract: The management theories of no practical value are known as management fads. One of those management fads - which is the focus of this research - is learning organization. There is sufficient evidence in English literature to conclude that learning organization is a management fad. The aim of this paper is to present the ample evidence that learning organization is a management fad. The maximum number of the research paper with the subject of learning organization was made in the late 1995 and the typical bell- shaped curve of the management fad is evident. In contrast to the world trend, a content analysis of Serbian journals discovered that a typical pick of a bell-shaped curve of papers covering the topic of learning organi- zation was 17 years later. It is argued in this paper that the learning organization phenomenon, as a norma- tive or prescriptive theory, should be abandoned in the academic world altogether. The learning organization fad is a phenomenon with low practical applicability, a phenomenon of a little value for further development in the management research.
    [Show full text]
  • Customer Relationship Management
    Technical Briefing DEVELOPING AND PROMOTING STRATEGY JUNE 2001 Customer Relationship Management ompetition is forcing many companies to restructure so that customers Crather than business processes become the focus of their organisation. Whether customers use telephones, fax, e-mail or websites, each contact point allows the company to capture information that is fed into the system. The goal is to offer a personal approach, to support one-to-one marketing. IN THIS BRIEFING… ustomer Relationship Management (CRM) has emerged from the Cnetworking technology revolution of the 1990s. The CRM movement is Part 1 – based on the business truism that it is more expensive to acquire new General FAQs on CRM customers than it is to retain old ones. With this in mind, the world’s leading companies are pioneering new strategies to improve customer intimacy and establish lucrative, long-term relationships. Today’s cutting-edge CRM tactics focus on strengthening a company’s relationship with customers through better information and improved service. Part 2 – Practical guidance on he business world has moved away from the old thinking that customers using CRM Tshould accept whatever product quality and service level a vendor supplies. Powerful customer relationship management (CRM) tools allow vendors to make the most effective use of customer data. Part 3 – et most organisations do not yet know enough about their customers’ Useful websites and Yneeds and aspirations. This lack of knowledge stems partly from an references for further absence of relevant data and also from the absence of powerful modelling reading and analytical systems. CRM systems are somewhat regarded as experi- mental by many organisations, even though their utility is widely accepted.
    [Show full text]
  • Management Fads the Last Between a Management Fad and a Valid Management Practice
    Management HowFads to Tell the Next Breakthrough Innovation From a Pet Rock By James C. Galvin Editor’s note: Our reflection on CMA’s 30 years led to a discussion about the many dif- ferent management practices over the last three decades. Some worked. Others didn’t. We asked ourselves: “How can you tell the difference between a management fad and some- thing that’s going to really work?” Organizational consultant Jim Galvin looks at some past management initiatives and helps us determine what is a fad and what is a true innovation. Remember MBWA? “Management by walking around” was widely discussed in the 1980s as a way to improve organizational performance. What actually hap- pened was that out-of-touch bosses got out of their offices and started micro- managing, violating chains of command, confusing supervisors, and generally irri- tating employees. Yet this practice proved to be beneficial for executives in organizations with many layers. I know some ministry leaders who intentionally practice MBWA today as a way to stay visible and in touch with employees and volunteers. So is it a management fad or valid best practice? Perhaps at some point in your career somebody gave you a copy of the One Minute Manager. In the 1980s, people were buying the thin $15 hardcover by the case. The book was a phenomenon. But have you ever been on the receiving end of a One Minute Reprimand? Did you find it inspiring and motivational? Yet goal- setting and immediate feedback endure as powerful management tools. So was the One Minute Manager a fad, or a collection of three best practices? Let’s not forget The 7 Habits of Highly Effective People.
    [Show full text]
  • 10. Chapter 8--Managerialism, Irrationality and Authoritarianism.Wps
    Chapter Eight. Managerialism: Irrationality and Authoritarianism in the Large Organization A. The Corporate Form and Managerialism. We have already seen, in the section of Chapter Three on the corporate form, that apologists for the corporate legal form have been forced to abandon much of Mises' "entrepreneurial corporation" doctrine, and concede ground to the proponents of the managerial revolution like Berle and Means. Stephan Kinsella, for example, argued: It is bizarre that there is this notion that owners of property are automatically liable for crimes done with their property... Moreover, property just means the right to control. This right to control can be divided in varied and complex ways. If you think shareholders are "owners" of corporate property just like they own their homes or cars--well, just buy a share of Exxon stock and try to walk into the boardroom without permission. Clearly, the complex contractual arrangements divide control in various ways: the managers, etc., really have direct control; subject to oversight by the directors... etc. But even here--to get a loan, the company has to agree to various covenants w/ the bank, that condition its right to use property. Even though the law would not call the bank an "owner" praxeologically it of course has a partial right to control the property. If you have a contract allowing rentacops to patrol the building--hey, they are partial owners too. If you are leasing from a landlord--so do they. If you allow the plumber in to fix the building--he has temporary right of control too. So what?1 And in an email to the Libertarian Alliance's Sean Gabb, he "raise[d] doubts about the effective control that shareholders have over their companies, and wonder[ed] if they should not rather be placed in the same category as employees or lenders or contractors."2 He continued to develop the same argument, in his response at Mises Blog to Gabb's article on the subject: ....You conceive of a shareholder as the "natural" owner of the enterprise.
    [Show full text]
  • Defending the University? 2019:9
    Defending the university? 2019:9 What is managerialism in higher education? And how do academics react to it? In this thesis, the author tries to answer these questions. The first question is addressed through an analysis of managerialism in light of the Defending the university? history and norms of academic work. The second question is addressed through an interview-based qualitative study of how academics react to managerialism. Academics’ reactions to managerialism in Drawing on theoretical concepts like resistance, organizational misbehavior, gaming Norwegian higher education and functional stupidity, the author develops a set of academic reactions to managerialism. A central argument in the thesis states that academic resistance towards management differs from traditional workplace resistance, as it is performed Jo Ese to protect academic work from what academics see as the corrosive effects of managerial systems. By addressing these issues, the thesis contributes to the knowledge on academic work in the 21st century, with a special emphasis on how members of faculty react to contemporary developments in the management of universities. ISBN 978-91-7867-004-8 (print) ISBN 978-91-7867-009-3 (pdf) Faculty of Arts and Social Sciences ISSN 1403-8099 Working Life Science DOCTORAL THESIS | Karlstad University Studies | 2019:9 DOCTORAL THESIS | Karlstad University Studies | 2019:9 Defending the university? Academics’ reactions to managerialism in Norwegian higher education Jo Ese DOCTORAL THESIS | Karlstad University Studies | 2019:9 Defending
    [Show full text]
  • Workplace Spirituality: Another Management Fad?
    University of Wollongong Research Online Faculty of Commerce - Papers (Archive) Faculty of Business and Law April 2005 Workplace spirituality: Another management fad? Mario Fernando University of Wollongong, [email protected] Follow this and additional works at: https://ro.uow.edu.au/commpapers Part of the Business Commons, and the Social and Behavioral Sciences Commons Recommended Citation Fernando, Mario: Workplace spirituality: Another management fad? 2005. https://ro.uow.edu.au/commpapers/155 Research Online is the open access institutional repository for the University of Wollongong. For further information contact the UOW Library: [email protected] Workplace spirituality: Another management fad? Abstract During the last two decades, interest in the field of workplace spirituality has continued to grow. However, will workplace spirituality be another management fad? Human Relations, Organisational Development, Total Quality Management and Quality of Working Life were all more deeply researched than spirituality at work. In this paper, I discuss the relevance of Institutional Theory to examine the faddish nature of the workplace spirituality discourse. With the increase in ‘spiritual talk’, I argue that a controversial issue is how we could ascertain the extent to which organisations are seeking legitimacy rather than a genuine commitment to an authentic spirituality. Disciplines Business | Social and Behavioral Sciences Publication Details This chapter was originally published as: Fernando, M, Workplace spirituality: Another management fad?, in M. Adams and A. Alkhafaji (eds.), Business Research Yearbook: Global Business Perspectives, Volume XII, No. 2, International Academy of Business Disciplines, 2005, (ISBN: 1-889754-090-9). The website of the International Academy of Business Discipline can be found here.
    [Show full text]
  • The Life Cycle of Academic Management Fads
    The Life Cycle of Academic earch Management Fads ifealth r \'ity Institutions of higher education are always under pressure to become more efficient and effective. In response, many have attempted (either voluntarily or under mandate) to adopt new manage- eat tIe ment systems and processes that were originally designed to meet the needs of (presumably) more efficient business or governmental organi- zations. One contemporary observer, referring to "the hum of corporate buzzwords" in the academy, has commented that "a person would be hard pressed these days to find a college that doesn't claim to be evalu- ating or reshaping itself through one of these approaches" (Nicklin, 1995, p. A33). This "hum" is not new; it has been a feature of the higher education landscape for at least the past forty years. Among the first of these processes was the Planning, Programming, and Budgeting System (PPBS), initially developed by Rand for use by the Defense Department and adopted by many higher education institu- tions in the early 1960s. Among the most recent are Business Process Reengineering (BPR), and Benchmarking. In between, business man- agement scholars have documented over two dozen management inno- vations that were proposed between 1950 and 1990 (Pascale, 1990), some of which were adopted by institutions of higher education. The de- velopment and advocacy of new management approaches in both nonacademic and academic management continues, and at an increasing pace. This article was presented at the annual meeting of the Association for the Study of Higher Education, November 5-8, 1998, Miami, Florida. It has been adapted with per- mission from Jossey-Bass from a chapter of Management Fads in Higher Education by Robert Bimbaum, to be published Spring 2000.
    [Show full text]
  • A Re-Examination of the Concept's Historical Popularity Trajectory
    administrative sciences Article Have the Reports of TQM’s Death Been Greatly Exaggerated? A Re-Examination of the Concept’s Historical Popularity Trajectory Dag Øivind Madsen Department of Business, Marketing and Law, School of Business, University of South-Eastern Norway, Bredalsveien 14, 3511 Hønefoss, Norway; [email protected] Received: 11 April 2020; Accepted: 8 May 2020; Published: 21 May 2020 Abstract: There is a vast literature on Total Quality Management (TQM), one of the most influential management concepts introduced during the twentieth century. In the TQM literature, there are multiple conflicting views on TQM’s historical popularity trajectory. In the past, commentators have debated whether TQM represents a lasting trend, or instead should be considered a more short-lived management fad or fashion. Since the 1990s, skeptics have speculated about the imminent fall, death, and burial of TQM, and even delivered eulogies. However, others claim that the level of interest has picked back up and that TQM is alive and well. Therefore, this paper attempts to synthesize and reconcile these differing views on the long-term trajectory of TQM and provide an updated picture and status report, taking into account the latest findings and developments in research and practice. The evidence reviewed in this paper suggests that, even though TQM has become much less noticeable in public management discourse compared to the heydays of the 1980s and 1990s, the concept has persisted and even to this day remains widely used by organizations worldwide. Keywords: TotalQuality Management; management concept; management fashion; origins; evolution; supply-side; demand-side; diffusion; implementation 1.
    [Show full text]
  • Sustaining the Latest Management Fad
    Sustaining the Latest Management Fad George Drops National University Abstract Management theories and fads come and go, some stay and some are forgotten. A current issue in management and leadership is sustainability, originally referring to the environment, and now the economy, but ultimately to the organization as well as individuals. Identifying sustainability is first dealt with by asking questions, such as how can you sustain your job, your work, your career, which is different than improving your performance or changing jobs and organizations. The likelihood of sustainability of this new management/leadership theory is somewhat increased due to the involvement and concern of individuals throughout the world. Ideas on establishing the concept in organizations and the workplace are reflected in this paper. The Development of Management Theories For decades management has been significantly influenced by various ideas and theories, sometimes referred to as “fads.” Such fads have included the ideas of scientific management (Taylor, 1911), management by objectives (Drucker, 1954), one minute management (Blanchard, 1982), customer service (Albrecht, 1985), total quality management (Deming, 1988), the learning organization (Senge, 1990, liberation management (Peters, 1992), process re- engineering (Hammer, 1993), open book management (Case, 1995), and an abundance of others. Many of these were based upon studies and surveys of companies by individuals focused on identifying ways for organizations to improve management and support organizational growth and development. Each of the theories contained kernels of truth that added value to management practice in both profit and non-profit organizations. Despite the effort and initial enthusiasm related to the use of such ideas, the search for excellence has continued for years looking for the one theory that will provide the best answer to all management practices and organizational concerns.
    [Show full text]
  • What Does the MOA Bring to the Consultation and Planning Process?
    What does the MOA bring to the Consultation and Planning Process? At the end of this unit, the successfui participant will 6e able to: Understand the primary concepts emphasized by the MOA to Improve efficiency and effecriveness of land use plans and associated consultations. Identify actions he or she can take to Implement these concepts. At the end of this unit, the successful participant will be able to: Identify the benefits to Implementing the MOA. Identify ways to overcome potential barriers to Implementing the MOA. Interagency Cooperation What does the MOA ask us to do differently? • People and Teams • Process • Land Use Planning and Consultations People and Teams Early Communication Early and Close Coordination Example: Action agency contacts consulting agency early in planning process. People and Teams Organized Teams Strong, organized team approach that includes consulting agency as memt>er - Working Groups. f BO LUP \ ( Team Team J Working Group Reality Check People and Teams Dispute Resolution Pre-arranged dispute resolution process - Local - Regional - National Process Consultation Agreement Capture on paper -scope of proposed action -scale of analysis, information needs -staff and responsibilities -time frames -dispute resolution -staff coordination Process Consultation Agreement Adaptive Process -Be ready to change as needed -Communicate continuously -Agree on changes Process Plan and Program Level Design plans and programs to benefit candidate, proposed and listed species so that future actions will be "no jeopardy" Future
    [Show full text]
  • Chaffee, Ellen Management Fads in Higher Education. AIR
    DOCUMENT RESUME ED 205 098 HE 014 124 AUTHOR Allen, Richard: Chaffee, Ellen TITLE Management Fads in Higher Education. AIR Forum 1991 Paper. PUB DAT? Mav 81 NOTE 35p.: Paper presented at he Annual Forum of the Association for Institutional Research (21st, Minneapolis, MN, May 17-20, 1981). FORS PRICE MF01/PCO2 Plus Postage. DESCP.IPTOPS Administrative Policy: Administrative Principles: College Administration: *College Planning: *Cost Effectiveness: *Decision Making: Financial Policy: *Higher Education: *Models: *Program Budgeting: Program Costs IDENTIFIERS *AIR Forum: Collegiality: Planning Programming Budgeting System: Strategic Planning ABSTRACT The practices of program budgeting, costing, and strategic planning in higher education are examined. It is suggested that many postsecondary administrators and other groups have viewed a particular technique as the answer to their problems and converted a valid management technique into a management fad. Program budgeting, a system whereby the oraaniz**Ion's programs or outputs,rather then its saburits, are allocated resources, is most often identified with Planning Programming Budgeting Systems (PPBS). It is claimed that PPBS was adopted by higher education soon after its first uses in crovernmen* settings without evidence to suggest its applicability and wtthou* careful consideration of its uses and limitations. Among other problems is the fac' that higher education is unable to specify 'he nature of its outputs, much less to measure them for cost-benefit or cost - effectiveness calculations that underlie the utilityof PPBS. Additionally, terms such as "cost," "benefit," and "program" were used as If they had definitive and commonly understood meanings when they did not. In regard to costing, it is suggested that the lack of a usable Production function has forcedhigher education to cost activities rather than outputs and has imposed limitations on the usefulness of the cost data.A second failure to adapt to a new set'ina is the adoption by state aaenctes of costing techniques developed for institutional use.
    [Show full text]