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By Guest Writer Dr. LM Foong:

After several articles written and distributed to subscribers of TQM Ezine Community, I have received several inquiries about what should be the right measures.  Some have requested me to give typical case study on the usage of a Right Measure.  I appreciate the request and am more than happy to share with you some of the case studies on real life application during my consulting work with several organizations.

Case Studies A Dynamic Banking corporation has the following information:

Vision : To Be A Preferred Commercial Bank

Objective : To capture 10% of the market share

From the vision and objective statement, it is obvious that the key measures established i.e. market shares is used to reflect dynamic Bank as a preferred bank.  Is the measures established represents the progress of the vision and status of the Objective?  Let us examine together.  In order to be a preferred bank, the number of customers should be substantial enough. The customer can be represented by market share but the question is that “Is 10% a substantial share” in the market?

I must point out that banking industries in this region is very competitive. Besides, having 10 local bankers, they have to compete with foreign bankers such as Citibank, HSBC, OCBC, Stanchat, UOB etc. (For Singapore & Axis Bank Home Loan Interest Rates, see that article on this site).

That make the total number of Bankers to 15.  Due to the competitive industries, would you consider the market share is substantial if Dynamic Bank can capture 10% market share? If your answer is a “yes”, you are probably right!

Dynamic Scenarios

However, let me put it to another scenario, Dynamic Bank may have capture a 10% market share, but its position is way below the mid point i.e. more than 7 placing. Would you consider such a low rating in position considered as a preferred Bank? If you answer is a “NO”, then the measure “market share” used is not as appropriate as opposed to using a measure such as “Market Position”

Then if  “Market Position” is considered as a measure, then the target should be stretched enough to indicate it is a preferred Banker.  Example: Market Position -Top 3 Banker.  One of the shareholder has reservations about using the Market Share and Market Position as the only measures. His rationale is that if the Bank meet the target set for these two measure but profitability is way behind the competitors, then it does not reflect business excellence. He recommend that Dynamic Bank Corp consider to have three measures i.e.

Market Position, Share and Profitability

This case study is a typical business I came across. You may have noted that the three measures asked almost a perfect business scenario. If you are the shareholder, would you ask for similar measures?

Although I used a bank in this case study, the scenario is applicable to many other businesses. If you want to explore the Right Measures for your business, then drop me a note. We shall exchange ideas over email or blog http://tqmcasestudies.com/blog

Reader Question

agnes.chan68 asked:

I have a pair of old aged parents if OCBC take back my house they will have not place to stay can anyone help?