The Management Science Behind Our Benchmarking
Combating Myopic Tendencies
authors write, "The information accessible
through an IPN is critical in counteracting myopia:
- "Participating in an IPN allows companies to enhance their capabilities
on a regular basis and achieve a better sense of their market position.
- "Members typically report that the in-depth information obtained by
the IPN is unavailable through other sources.
- "In meetings and in informal conversations with their peers, members
receive ample and, most importantly, credible information about industry
trends and the performance of comparable companies.
- Information learned "helps members build realistic expectations for
the future and correct for misperceptions about the strength of their
- "The extensive sharing of information helps companies maintain a big-picture
orientation by keeping abreast of industry trends... The open disclosure
of company-specific information in IPNs helps companies gauge industrywide
margins and evaluate with greater precision how they stack up against
their peers on key dimensions of performance."
The authors quote an IPN member as saying, "You cannot really get [the]
information from other sources... With these guys, in informal conversations
and in meetings we talk frankly about what's going on in the industry."
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