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614<br />

Part Four<br />

Improvement<br />

Figure 20.9 Priority zones in the importance–performance matrix<br />

factor according to its scores or ratings on these criteria. Figure 20.9 shows an importance–<br />

performance matrix divided into zones of improvement priority. The first zone boundary is<br />

the ‘lower bound of acceptability’ shown as line AB in Figure 20.9. This is the boundary<br />

between acceptable and unacceptable performance. When a competitive factor is rated as<br />

relatively unimportant (8 or 9 on the importance scale), this boundary will in practice be low.<br />

Most operations are prepared to tolerate performance levels which are ‘in the same ballpark’<br />

as their competitors (even at the bottom end of the rating) for unimportant competitive<br />

factors. They only become concerned when performance levels are clearly below those of<br />

their competitors. Conversely, when judging competitive factors which are rated highly (1 or<br />

2 on the importance scale) they will be markedly less sanguine at poor or mediocre levels of<br />

performance. Minimum levels of acceptability for these competitive factors will usually be at<br />

the lower end of the ‘better than competitors’ class. Below this minimum bound of acceptability<br />

(AB) there is clearly a need for improvement; above this line there is no immediate<br />

urgency for any improvement. However, not all competitive factors falling below the<br />

minimum line will be seen as having the same degree of improvement priority. A boundary<br />

approximately represented by line CD represents a distinction between an urgent priority<br />

zone and a less urgent improvement zone. Similarly, above the line AB, not all competitive<br />

factors are regarded as having the same priority. The line EF can be seen as the approximate<br />

boundary between performance levels which are regarded as ‘good’ or ‘appropriate’ on one<br />

hand and those regarded as ‘too good’ or ‘excess’ on the other. Segregating the matrix in this<br />

way results in four zones which imply very different priorities:<br />

●<br />

●<br />

●<br />

The ‘appropriate’ zone – competitive factors in this area lie above the lower bound of<br />

acceptability and so should be considered satisfactory.<br />

The ‘improve’ zone – lying below the lower bound of acceptability, any factors in this zone<br />

must be candidates for improvement.<br />

The ‘urgent-action’ zone – these factors are important to customers but performance<br />

is below that of competitors. They must be considered as candidates for immediate<br />

improvement.

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