=Paper= {{Paper |id=Vol-1128/intro12 |storemode=property |title=Choice Navigation: Towards a Methodology for Performance Assessment |pdfUrl=https://ceur-ws.org/Vol-1128/paper12.pdf |volume=Vol-1128 |dblpUrl=https://dblp.org/rec/conf/confws/StorbjergNB13 }} ==Choice Navigation: Towards a Methodology for Performance Assessment== https://ceur-ws.org/Vol-1128/paper12.pdf
Simon Haahr Storbjerg, Kjeld Nielsen, Thomas Ditlev Brunoe                                                                       87




         Choice Navigation: Towards a Methodology for Performance Assessment

                           Simon Haahr Storbjerg, Kjeld Nielsen and Thomas Ditlev Brunoe
                   Department of Mechanical and Manufacturing Engineering, Aalborg University, Denmark
                                                  shs@m-tech.aau.dk



                           Abstract                                and maximizes the customer value. Several researches and
                                                                   practitioners in the industry have adopted the three
 Based on the increased demand for product customization
                                                                   fundamental capabilities, and continued this line of research,
 and the intensified competition, manufacturing companies
                                                                   defining and developing a more comprehensive
 are today more than ever required to deliver product variants     understanding of what characterises and constitutes a
 in an efficient manner. Research on mass customization has,
                                                                   successful mass customizer [Fogliatto et al., 2012; Lyons et
 up until now, primarily focused on clarifying the                 al., 2012; Piller & Tseng, 2010; Walcher & Piller, 2011].
 organizational capabilities defining successful mass              However, recent studies report that experience in industry
 customizers. Choice navigation is identified as one of the
                                                                   adopting and building these capabilities, is for many
 three fundamental capabilities. The process of building this
                                                                   companies an unsuccessful quest, leading to in worst cases
 capability does not occur as a discrete event, it is a change     company closures [Piller et al., 2012b]. Based on this
 process. Based on literature review and analysis, this paper
                                                                   knowledge, we argue that the industry lacks more detailed
 addresses the change process in relation to implementation
                                                                   and comprehensive guidance, on how to undertake the
 of the choice navigation capabilities. A framework for            transition from conventional approaches at manufacturing,
 performance assessment, supporting implementing of the
                                                                   to mass customization as a manufacturing strategy.
 choice navigation capabilities, is forwarded.                     Research on mass customization has also lately increasingly
                                                                   focused on the “how to” of mass customization, in order to
 1    Introduction                                                 provide improved guidance for companies in the
 A broadly recognized trend of today’s markets is the              organisational transition, when following a mass
 demand for customized products and services meeting the           customization strategy, e.g. [Partanen & Haapasalo, 2004;
 individual customer’s needs. Simultaneously today’s               Pollard et al., 2011].
 manufacturers are faced with demands for delivering               The same situation holds true when focusing on choice
 products faster and cheaper. These market trends happen in        navigation. Significant amount of research and valuable
 concurrence with the increased saturation and globalization       knowledge have been generated on what choice navigation
 of markets. Consequently, today’s manufacturers are on top        is about, including how to develop product configuration
 of the demand for customization, also faced with increasing       systems. However, the topics of how to support the
 demands for operating in an effective & efficient manner.         transition towards MC, and additionally the process of
 Perfectly suited to this challenge, mass customization arose      building the choice navigation capabilities, have thus so far
 as a concept and an operations strategy in the late 80’s,         only been scarcely addressed.
 combining the ability to deliver products that meet the           An alternate method of supporting organisational change,
 individual customers’ needs, as well as having an efficiency      which is often addressed in other streams of literature, is the
 similar to mass production [Davis, 1989]. Since then,             use of performance management. In relation to this, Nielsen,
 research has focused on clarifying the fundamental, or            Brunø and Jørgensen [Nielsen et al., 2012] have introduced
 defining, characteristics of the firms that successfully adopts   an overview of metrics and a framework for measuring a
 the mass customization strategy. This has led to the              company’s performance as a mass customizer. However, as
 introduction of three fundamental dimensions in enabling          the metrics only focus on solution space assessment or mass
 the mass customization ability. The three dimensions are by       customization in general, no guidance is given in regard to
 [Salvador et al., 2009] framed as the three fundamental mass      choice navigation.
 customization capabilities; Solution space development,           The purpose of this paper is based on this shortcoming in
 robust process design and choice navigation.                      the existing literature on mass customization to answer the
 This paper focuses on the process of building the choice          following research questions:
 navigation capability. This capability, or rather set of          How can performance assessment support the
 capabilities, refers to the ability to support customers in the   implementation of the choice navigation capabilities? What
 process of selecting the solution or variant that fulfils the     performance assessment methodologies are appropriate?
 customer requirements out of a pre-defined solution space,        In order to answer this, the choice navigation capability is




                                                                                     Michel Aldanondo and Andreas Falkner, Editors
                                                                        Proceedings of the 15th International Configuration Workshop
                                                                                                  August 29-30, 2013, Vienna, Austria
88                                                                     Simon Haahr Storbjerg, Kjeld Nielsen, Thomas Ditlev Brunoe


 further detailed in the following section by the use of central   navigation in the perspective of [Heiskala et al., 2010]
 literature In section 3, a model is introduced describing the     primarily relates to the configuration system, its features,
 dimensions along which performance assessment is relevant         user interface layout and ability to configure a variety of
 in the context of choice navigation. Based on this model,         products as well as undertake data migration.
 relevant performance assessment methodologies are based           Instead of arguing for or against these different views, the
 on the literature review introduced in section 4. In              choice navigation capability has more recently by e.g.
 conclusion, the results of the literature review are discussed,   [Forza & Salvador, 2007] also been described from a more
 and direction for potential further research is given.            holistic perspective. Building on this, the implementation of
                                                                   the choice navigation capability is more than just
 2    Choice Navigation - What is it about?                        implementing a configuration system, it is about managing
                                                                   organizational change, which involves both changes in
 What performance assessment methodology is appropriate            systems and people. Following this, we suggest that this
 depends on the object or artefact of measurement, as this         process should be viewed from a socio-technical perspective
 defines what is relevant to measure, and how measurement          [Trist, 1981].
 can be done. As the fundamental capabilities of mass
 customization are defined at a rather abstract level, it is       2.1 Choice Navigation from a Socio-Technical
 challenging to relate this to specific activities, or activity-       System Perspective
 areas, in a firm. Based on the aforementioned premise, the
 principal questions are: What is choice navigation really         Viewing this concept from a socio-technical point of view,
 about? What does the choice navigation capability mean in         it is implied that a company’s capability to perform choice
 an industrial context? Which activities, systems and human        navigation does not rely entirely on the technical systems,
 competencies does this abstract and high level capability         but to some extent also on the people using the system,
 refer to?                                                         whether internal sales people or external customers.
 The choice navigation capability is by [Salvador et al.,          Based on the above, we argue that choice navigation as
 2009] defined as, the capability of “supporting customers in      depicted on Figure 1, consists of both social assets, such as
 identifying their own solutions, while minimizing                 behaviour, routines and skills of e.g. sales personnel, as well
 complexity and the burden of choice”. By this definition it       as technical assets such as information systems, tools etc.
 is revealed that, the concept of the choice navigation            Based on this, we argue that the choice navigation capability
 capability, builds on assuming a causal relation between the      is to be viewed as a higher level abstract capability, which is
 efforts required of the customer to identify the solution, and    constituted by a set of more concrete capabilities.
 the customer satisfaction. Consequently when customers
 e.g. are exposed to an assortment of too many choices, the
 cognitive cost of evaluation outweighs the value of
 increased variety [Huffman & Kahn, 1998; Piller et al.,
 2012a]. Based on this knowledge, companies are required to
 simplify the navigation of their product assortment.
 It could seem as if MC-scholars are more or less in
 agreement on the underlying phenomena of choice
 navigation. However, if the literature on mass customization
 and choice navigation is reviewed, it is revealed that the
 conception of the choice navigation capability varies.            Figure 1 Choice navigation as a socio-technical system capability
 Some authors, e.g [Da Silveira et al., 2001; Fogliatto et al.,                    with multiple abstraction levels.
 2012] describes choice navigation as a customer                   Another argument for taking a more holistic and socio-
 manufacturer communication, involving the transfer of             technical system perspective on the choice navigation
 knowledge from manufacturer to customer, and vice versa.          capability, is found in the following definition of
 Hence a knowledge transferring process done by so-called          capabilities, which both encompasses human assets, and
 agents of information transfer, which in this connection are      technical assets. According to [Boer et al., 2001],
 described as the manufacturer and its customers. In contrary      capabilities can be described as “Integrated stocks of
 to this, other authors, e.g. [Franke & Piller, 2003; Heiskala     resources that are accumulated over time through learning,
 et al., 2010; Mortensen et al., 2008; Trentin et al., 2013]       or established through deliberate decisions. These stocks of
 describe choice navigation, as a configuration system             resources include internalised behaviours, technical skills,
 involving the use of dedicated IT support, in the form of a       organisational routines, and corporate assets such as
 product configurator, also referred to as choice board, or        information systems, databases, libraries, tools, and
 customer design system.                                           handbooks”.
 Investigating the underlying view of the choice navigation
 capability in these cases, it is evident that in both [Da         3    Transition Towards Choice Navigation
 Silveira et al., 2001; Fogliatto et al., 2012] the choice         Mass customization calls for a transformed company
 navigation capability is described as primarily relating to the   [Boynton et al., 1993]. As highlighted by [Salvador et al.,
 agents of information transfer, whereas the view on choice        2009], this transformation is not something that can be




Michel Aldanondo and Andreas Falkner, Editors
Proceedings of the 15th International Configuration Workshop
August 29-30, 2013, Vienna, Austria
Simon Haahr Storbjerg, Kjeld Nielsen, Thomas Ditlev Brunoe                                                                              89


 realized in a single event, it is an on-going or continuous               3) The output performance of the choice navigation process
 improvement activity.                                                    In addition to these three performance dimensions, it is also
 The purpose of this paper is to clarify performance                      relevant to describe the performance of the mass
 assessment methodologies, that can give valuable feedback                customization process. This is however not included as an
 on the implementation of the choice navigation capabilities,             additional dimension, as it is believed to be hard to
 so that corrective actions can be taken.                                 distinguish between the performance of choice navigation,
 Based on the viewpoint that the choice navigation capability             and the performance of the mass customization process.
 is comprised of both social and technical capabilities, key              According to the three aforementioned dimensions, as well
 questions in relation to this are: How to understand and                 as literature review, relevant performance assessment
 model the process of building the choice navigation                      methodologies are introduced in the subsequent section.
 capabilities? Which performance constructs can be
 identified, i.e. along which dimensions can performance of               4   Performance Assessment Methodologies
 this socio-technical configuration system be described?
 In relation to the first question [Boer et al., 2001] has                It has for long been recognized that performance assessment
 introduced the model depicted in Figure 2, which describes               has an important role to play in the efficient and effective
 the central constructs in the process of building capabilities           management of organizations [Kennerley & Neely, 2003].
 for continuous innovation.                                               This topic has, as reckognized by among others [Folan &
                                                                          Browne, 2005], also gained focus in an ever-increasing
                            Capabilities                                  number of academic fields.
                                                                           The research on performance assessment was initiated in
             Levers          Behaviour           Performance
                                                                          management accounting in the beginning of the 20th
                                                                          century, and later gained a broader role into non-financial
                                                                          disciplines, such as operations management, marketing, and
                           Contingencies                                  human resource management [Chenhall & Langfield-Smith,
      Figure 2 CIMA behavioural model by [Boer et al., 2001].             2007]. Organisational performance is as highlighted by
 As the model in Figure 2 links elements such as capabilities,            [Cameron, 1986] among others, by no means a simple
 performance and levers, we have chosen to take point of                  phenomenon; rather, it is a complex and multidimensional
 departure in this, in modelling of the central elements                  concept. There are several purposes of conducting
 involved in implementing the choice navigation capabilities.             performance assessment, [Melnyk et al., 2004] highlights
 The outcome, which is depicted at Figure 3, shows how the                one which quite accurate defines the purpose of
 choice navigation process, which consists of interplay                   performance assessment in this context;
 between behaviour of the technical system and the social                 “closed-loop deployment of organizational strategies,
 system, determines the choice navigation performance.                    allowing relevant information to feed back to the
 Furthermore, the choice navigation process is affecting the              appropriate points facilitating decision and control
 choice navigation capabilities, by e.g. development of                   processes”.
 routines based on repeated behaviour.           The choice               Assessment of organisational performance, in order to
 navigation process is in turn affected by the capabilities of            provide control information, has split into two main streams
 the company, and the levers brought in use, e.g. IT systems,             in literature; one stream focusing on metrics, performance
 etc. Finally the levers utilized are based on feedback or                measures, performance measurement systems, and
 control information from the performance of the process.                 approaches to performance management, e.g. [Folan &
                                                                          Browne, 2005; Melnyk et al., 2004; Neely et al., 2005]. The
                         CN Capabilities
                                             1
                                                                          other stream of literature, which is dominatantly within
                        Technical   Social
                                                 Mass Customization       quality management literature, focuses more on the use of
                                                    Performance
                                                                          capability maturity frameworks, in the assessment of
                                                                          organisational capabilities, e.g. [Maier et al., 2012].
                            CN Process
                                                        CN
                                                                          Despite different approaches and focus, the two streams of
         Levers                                                           literature both provide methodologies for feedback,
                        Technical   Social          Performance
                                                                          recommendations and control information enabling
                                                                      3
                                             2                            assessment of an improvement effort. In order to clarify
                             Feedback
                                                                          what performance assessment methodologies are
 Figure 3 Behavioural model of the socio-technical CN system,             appropriate, central contributions within each of these
 outlining the three dimensions of performance assessment. Model          streams are reviewed in the following, and reference is
 is based on modifications to model of [Boer et al., 2001].               given to the three performance dimensions identified in
 Based on the constructs of this process in building the                  above.
 choice navigation capabilities, three dimensions have, as                The performance measurement methodologies are assessed
 depicted at Figure 3, been identified potential in describing            agains three criterias:
 the performance of this process:                                         1) What is measured? Do the methodology encompass
  1) The degree to which the capabilities have been built                      performance assessment by quantitative performance
  2) The choice navigation process performance                                 measures or assessment of organizational capabilities?




                                                                                            Michel Aldanondo and Andreas Falkner, Editors
                                                                               Proceedings of the 15th International Configuration Workshop
                                                                                                         August 29-30, 2013, Vienna, Austria
90                                                                   Simon Haahr Storbjerg, Kjeld Nielsen, Thomas Ditlev Brunoe


      2) Non domain-specific? Are the methodology non             Business Process Reengineering process. The framework
          specific for a particual domain, i.e. are the           consists of three dimensions:
          methodology more generally applicable.                    • Business processes: customer order fulfilment, vendor
      3) Operationalizable?        Are     the    methodology         supply, engineering, manufacturing, etc.
          operationalizable, i.e. not only conceptual.              • Competitive priorities: time, cost, quality, flexibility,
 Only the performance measurement methodologies meeting               environment
 the three requirements are introduced in the following.            • Order-delivery type: make-to-stock, assemble-to-order
                                                                      make-to-order, engineer-to-order.
 4.1 Performance Measurement and Management                       With regard to these three dimensions, combinations of
 Performance measurement has its roots in early accounting        different strategic performance indicators (SPI’s) can be
 systems, the first financial ratios and budgetary control        generated. Each of these strategic performance indicators
 procedures was developed in DuPont and General Motors            can be broken down into lower level indicators. This
 during the early 1900s [Neely et al., 2005]. Since then the      breakdown is done context specific, and the performance
 demands from managers, to assess the effectiveness and           indicators are thus customised to the context of application.
 efficiency of specific areas, have resulted in a proliferation   In addition to the structural framework [Bradley, 1996] also
 of approaches to performance measurement [Chenhall &             introduce a procedural framework for PM system design.
 Langfield-Smith, 2007]. Today, basically all areas of an         This describes how to link the performance indicators with
 organisation are in the scope of performance measurement         the company’s strategy statement and business processes.
 and management, each with distinct perspectives and              Balanced Score Card (BSC) [2,3]
 purposes.                                                        One of the most recognized and broadly applied
 The research on performance measurement can according to         performance systems or frameworks is the BSC, which was
 [Folan & Browne, 2005], be said to give recommendations          developed by [Kaplan & Norton, 1992]. The BSC approach
 on four different levels or dimensions. Recommendations          gives a holistic view of the organization by simultaneously
 for:                                                             looking at four different perspectives on performance; (1)
  1) Individual performance measures                              Financial, (2) internal business, (3) customer, (4) innovation
  2) Structural frameworks (set of performance measures)          and learning. BSC is based on this a good example of a
  3) Procedural     frameworks     (process     of    building    performance assessment system that employs a balanced set
      performance measures systems)                               of financial and non-financial measures. The BSC approach
  4) Performance measurement systems (the integration of          is based on the principle that a performance system should
      the above)                                                  provide managers with sufficient information to address the
 The term performance framework refers, as stated in [Folan       following questions:
 & Browne, 2005], to the active employment of particular            • How do we look to our shareholders (financial
 sets of recommendations. What is in common for most of               perspective)?
 the performance measurement frameworks and systems are,            • What must we excel at (internal business perspective)?
 that the performance measurement boundaries, dimensions            • How do our customers see us (customer perspective)?
 and relations in between the measures are given.                   • How can we continue to improve and create value
 Rather than giving an extensive review on literature on              (innovation and learning perspective)?
 performance measurement and management, the objective            The performance measures to be utilized in the BSC system
 of this paper is more to clarify performance assessment          is initially to be formulated during the system development
 methodologies relevant for choice navigation.                    process, according to the BSC system design methodology..
 Based on this focus, the literature review concentrates on       Based on this, no performance measures are explicitly pre-
 performance measurement systems and structural                   defined by the approach.
 frameworks. Literature on individual metrics and literature
 on procedural frameworks are thus omitted. For a review of       Comparative Business Scorecard [2,3]
 individual performance measures we refer to [Chenhall &          With point of departure in the balanced scorecard, [Kanji,
 Langfield-Smith, 2007] . Similarly, for a more extensive         1998] introduced the Comparative Business Scorecard. This
 review of the available performance measurement                  framework is based on adaption of TQM principles to
 frameworks we refer to [Folan & Browne, 2005; Neely et           monitor progress and performance toward towards
 al., 2005; Pun & White, 2005].                                   excellence. To enable this the performance measures
 The performance measurement methodologies found                  focuses on the drivers of success; delight the stakeholders,
 relevant based on the criterias listed in the following. For     ensure stakeholder value, process excellence and
 each method, it is in brackets indicated, which of the           organisational learning.
 performance assessment dimensions, depicted at Figure 3,         As noted in [Kanji, 1998] this framework is merely an
 the metholody is supporting.                                     attempt to go a step further and extend the understanding of
                                                                  the four BSC perspectives. The framework is in
 AMBITE performance cube [2,3]                                    methodology and structure, thus not radically different than
 The structural performance framework introduced by               the BSC.
 [Bradley, 1996] is specifically designed to suit a so called




Michel Aldanondo and Andreas Falkner, Editors
Proceedings of the 15th International Configuration Workshop
August 29-30, 2013, Vienna, Austria
Simon Haahr Storbjerg, Kjeld Nielsen, Thomas Ditlev Brunoe                                                                       91


 General Motors Integrated Performance Measurement                 Results and Determinants Matrix [2,3]
 System [2,3]                                                      The performance measurement framework introduced by
 This integrated performance measurement system is an              [Fitzgerald et al., 1991] is especially developed for the
 outcome of significant investments within General Motors          services businesses. The framework employs a distinction
 in the early 90’s, in the design of a performance                 between measures of results, and measures of the
 measurement and feedback system, consisting of 62                 determinants of the results. The frame work involves several
 measures [Gregory, 1993]. The framework is, in order to           measures, e.g. competitiveness, liquidity, capital structure
 provide valuable input in a complex organisation, designed        and market ratios, that according to the author do not vary
 to be applied at various organisational levels, with specific     across the three generic service types, which is identified.
 measures for each level. The measures can generally be split
                                                                   Strategic Measurement Analysis and Reporting
 in measures of results, e.g. quality and responsiveness, and
 measures of the process of strategy implementation. The           Technique (SMART) [2,3]
                                                                   The Strategic Measurement Analysis and Reporting
 measures ensures that employees retain their focus on
                                                                   Technique (SMART) system, also known as the
 continuous improvement through teamwork in the key
 business activities.                                              Performance Pyramid, is designed by [Lynch & Cross,
                                                                   1992]. The system is designed with the intent of creating a
 Integrated Performance Measurement Framework [2,3]                management control system of performance indicators, that
 Similarily to the approach of General Motors, the Integrated      can assist in defining and sustaining organisational success.
 Performance Measurement System of [Medori & Steeple,              The framework employs a hierarchical view of business
 2000], encompasses multiple measures. The structural              performance measurement, in the sense that it is modelled
 performance framework is composed of five sub-systems             as a pyramid with four hierarchical levels of objectives and
 each with distinct purposes of performance measurement,           measures. The SMART system includes a 10 step
 and each with different performance measures. The five            procedural framework describing the performance
 sub-systems of the performance framework interact and co-         assessment process.
 ordinate in a controlled fashion. The integrated performance
                                                                   Structural Performance measurement matrix [2,3]
 framework does not include any procedural elements,
                                                                   [Keegan et al., 1989] have proposed a structural
 besides a set of principles that should be considered
 alongside the framework.                                          performance measurement framework which seeks to
                                                                   integrate different dimensions of performance. The
 Performane Prism [1,2,3]                                          framework is modelled as a 2x2 performance measurement
 The Performance Prism framework introduced by [Neely et           matrix, that categorises performance measures based on two
 al., 2002] offers a new approach to measuring organisational      dimensions; financial versus non-financial and internal
 performance in that it integrates strategy, capabilities and      versus external.
 performance measures. The framework is built upon the
 argument that one of the greatest fallacies of measurement        In addition to the performance measurement systems
 design is that performance measures should be derived from        described in above, a number of more conceptual
 strategies.                                                       performance measurement systems have been identified;
 The performance framework includes five inter-related and         Dynamic Performance Measurement Systems (DPMS)
 weighted aspects;                                                 Integrated Performance Measurement Systems (IPMS),
  1) Stakeholder satisfaction; who are the organization's key      Framework for multinational companies, and the ICAS
      stakeholders and what do they want and need?                 performance measurement framework. Furthermore, a
  2) Stakeholder contribution; what contributions does the         number of more procedural focused performance
      organization require from its stakeholders?                  measurement systems or frameworks have been identified,
  3) Strategies; what strategies does the organization have to     for an overview of these we refer to [Browne et al., 1988].
      put in place to satisfy the wants and needs of these key
      stakeholders?                                                4.2 Capability Assessment Methodologies
  4) Processes; what critical processes does the organization      The assessment of organisational capabilities, is another
      need to operate and enhance these strategies?                promising way of providing feedback and control
  5) Capabilities; what capabilities does the organization         information in process improvement initiatives. The
      need to operate and enhance these processes?                 purposes or drivers for adopting a capability based approach
 To each of the aspects of the framework specific                  to performance assessment are however, as highlighted by
 performance measures are given, accompanied by their              [Maier et al., 2012], other than process improvement. Some
 results, trends, targets, standards, initiatives and action       might adopt capability assessment based on imposed
 plans. These data-sets are included in scorecards to facilitate   conformance requirements. In other cases customers may
 the performance management. The measurements are                  explicitly require compliance with certain frameworks, or
 furthermore connected with each other through sets of             the competition on the market place may implicitly require
 hypothetical relationships called "success map". Together         compliance.
 the five viewpoints provide a comprehensive and integrated        Capability assessment frameworks are generally designed to
 framework for managing organisational performance.                assess the maturity of either the entire organization, or a




                                                                                     Michel Aldanondo and Andreas Falkner, Editors
                                                                        Proceedings of the 15th International Configuration Workshop
                                                                                                  August 29-30, 2013, Vienna, Austria
92                                                                        Simon Haahr Storbjerg, Kjeld Nielsen, Thomas Ditlev Brunoe


 selected domain, e.g. process or functional area. The                Communciation Grid [1]
 capability assessment is typically conducted by appraisal of         Based on the stand that effective communication is key to
 the activities done, against a predefined set of criteria’s,         avoid problems within engineering design, the
 which most often is gathered in a framework. Process                 communication maturity grid has been developed by [Maier
 improvement is a central Total Quality Management (TQM)              et al., 2006]. The purpose of this framework is to assess the
 concept, and much of the research on capability maturity             maturity of the communication of the engineering design
 assessment, has been done within quality management. The             activities. The grid measures the maturity within 5 process
 use of capability maturity assessment frameworks has since           areas against four generic maturity levels.
 the concept of measuring maturity was introduced in the
                                                                      Design Process Audit Grid [1]
 early 90’s proliferated across a multitude of domains.
                                                                      A good design is key for company success. Based on this
 The work on capability framework can generally be split up
 into capability maturity models, and capability grids, which         [Moultrie et al., 2007] has developed the design process
                                                                      audit grid. The grid is developed to assess the maturity of
 according to [Maier et al., 2012] can be distinguished on
                                                                      the design processes within SME’s. Based on 24 process
 three aspects; work orientation, mode of assessment and
 intent.                                                              areas the activities in design from requirements capture to
 As with the performance measurement frameworks, the aim              introduction in manufacturing are asessed against four
                                                                      maturity levels.
 of this paper is not to conduct an extensive review, due to
 this only the grids and maturity models that are identified as       Innovation Audit Maturity Grid [1]
 relevant in this context, are addressed in the following. For a      The innovation audit maturity which is introduced by
 more comprehensive review of capability assessment                   [Chiesa et al., 1996], focuses on the product development
 frameworks we refer to [Maier et al., 2012].                         processes through which innovation and innovation
 Based on an extensive literature search [Maier et al., 2012]         management is performed. The grid consists of 8 process
 have identified 61 maturity grids. Before conducting the             areas each with 2-4 sub-questions. The audit methodology
 review, the number of methodologies for review have been             uses a two level approach a rapid assessment and an in-
 narrowed down to 24 based on requirement to among other              depth audit.
 things a grid-based approach. Utilizing the criterias from
 section four in the review of these grids, five grids have           Product and Cycle time Excellence Maturity Grid [1]
 been identified relevant.                                            The purpose of the Product and Cycle time Excellence
 Similarly [Kohlegger et al., 2009] review based on                   (PACE) maturity grid is to assess and improve the
 extensive literature search, and preliminary filtering, 5            progression of the new product development process
 maturity models. If the three criterias listed introductory in       [McGrath & Akiyama, 1996]. The PACE maturity grid
 section 4 are utilized in evaluation, only the CMM model is          encompasses 10 process areas related to product
 found relevant.                                                      development, and measures against four levels of maturity.
 The capability assessment metholodgies found relevant is             R&D Effectiveness Maturity Grid [1]
 described in the following. It is for each indicated in              The maturity grid for measuring R&D Effectiveness is
 brackets which of the performance assessment dimensions              developed by [Szakonyi, 1994] based on several decades of
 depicted at Figure 3 the metholody is supporting.                    experience and work with a number of companies. The
 Capability maturity models (CMM) [1]                                 framework measures 10 processes related to R&D.
 The Capability Maturity Models (CMM) was first
 developed at the Software Engineering Institute (SEI) at             5    Conlusion & Discussion
 Carnegie Mellon University [Paulk et al., 1993]. Where the           There seems to be general agreement between the industry
 focus of the first CMM models was to support assessment              and academia that the competition on the market place
 software development within a number of sub-processes, an            displays a trend of higher price competition combined with
 integrated capability maturity model (CMMI) has later been           the demand for customization. The requirement of
 introduced [Chrissis et al., 2003].                                  companies to meet the individual customers’ demand at a
 The integrated model consists of 22 process areas, and               reasonable price continues to characterize a central
 supports product development in general. The capability              challenge for industrial manufacturers today. Based on this,
 maturity model works as a multi-level maturity ranking               successfully managing the radical organizational change
 process, where a number of important areas, relative to an           that following it requires to follow a mass customization
 organisations’ performance, have been clarified. For each of         strategy, is still an important topic. The purpose of this
 these areas a number maturity levels has been defined, each          paper is to support clarification of a methodology for
 with distinct capabilities, i.e. practices, methods, skills, tools   assessing the performance of the choice navigation process.
 etc. By auditing the practices done in a company, the                The aim of the research is to enable an improved
 capabilities and maturity levels can be identified. Due to           management of the organizational change in the process of
 this, progressively greater levels of performance are                building the choice navigation capabilities.
 reflected, as an organisation matures in general or within           According to the conducted literature review and analysis, a
 specific areas.                                                      variety of methods for giving feedback and control
                                                                      information on performance have been clarified. In




Michel Aldanondo and Andreas Falkner, Editors
Proceedings of the 15th International Configuration Workshop
August 29-30, 2013, Vienna, Austria
Simon Haahr Storbjerg, Kjeld Nielsen, Thomas Ditlev Brunoe                                                                       93


 answering if any methods are appropriate for giving relevant      [Chenhall, R. H., & Langfield-Smith, K. 2007] Robert H.
 feedback information to the process of implementing the                 Chenhall and Kim Langfield-Smith. Multiple
 choice navigation capabilities the first step is to review and          perspectives of performance measures. European
 discuss the available methods at a typological level.                   Management Journal, 25(4), 266-282. 2007
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                                                                                     Michel Aldanondo and Andreas Falkner, Editors
                                                                        Proceedings of the 15th International Configuration Workshop
                                                                                                  August 29-30, 2013, Vienna, Austria
94                                                                 Simon Haahr Storbjerg, Kjeld Nielsen, Thomas Ditlev Brunoe


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Michel Aldanondo and Andreas Falkner, Editors
Proceedings of the 15th International Configuration Workshop
August 29-30, 2013, Vienna, Austria