Benchmarking

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Benchmarking
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Introduction

• What Is Benchmarking?
• Why Benchmark?
• What Should We Benchmark?
• How Do We Benchmark?

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• Good artists initiate.
• .Great artists steal!
• 
  Picasso

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Benchmarking in the Public Sector

• The Value of Benchmarking Is That It Provides a
  Substitute for the Efficiency Boosting Effect of
  Market Forces for Organisations That Are Not
  (Normally) Exposed to Market Economies.
• Tony Bendell, Benchmarking for Competitive
  Advantage

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Key Areas in the Public Sector

• Used by Government in Purchasing
• whole life cost
• quality and reliability
• timeliness of supply
• risk and change

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Why Benchmark?

• To Obtain an External Perspective of What Is
  Possible
• To Assist in Setting Strategic Targets
• To Promote Improvements in Performance
• To Establish a Competitive Edge
• To Enhance Customer Satisfaction
• To Reduce Costs
• To Improve Employee Morale
• To Achieve Quality Awards
• To Survive

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Benchmarking in the Context of TQM

• TQM Key principles include
• Comparisons with best practice
• A Strong emphasis on meeting the needs of the
  customer (internal and external)
• The importance of efficient, effective business
  processes
• The need for continuous improvement
• Enhances a TQM programme

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What should we Benchmark?

• Performance in
• Services or products that we sell or provide to
  internal and external customers
• Key business processes
• The internal structure of the organisation

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How do we Benchmark?

• We should assess performance in terms of
• Critical Success Factors

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Critical Success Factors

• Critical Success Factors (CSFs) Are the Key
  Indicators That Inform Us That a Particular Task,
  Activity, Process, Event, Function, Service or
  Endeavour Is Successful
• CSFs Are a Feature of All Levels of Business
  Activity From the Company As a Whole Down to the
  Activities of Individuals in It
• How Will Success Feel?

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Planning a Benchmarking Exercise

• Principal Requirements for Success
• Strong Commitment From Senior Management
• Willingness to Act on Any Major Opportunities for
  Improvement Revealed by Benchmarking
• Resources
• Staff Capable of Running a Benchmarking Project
• Time for Employees to Spend on Benchmarking
  Activities

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Types of Benchmark

• Internal Non-competitive, Branch With Branch,
  Region With Region, Etc.
• Competitive Dancing With the Enemy E.G Rover
• Functional External, Non Competitive, Similar
  Activities
• Generic External , Non Competitive, Key Business
  Processes.

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Choosing a benchmarking Partner

• The Ideal Benchmarking Wil Be
• Better or Best in Class in Our Chosen Area Plus
• Focussed on Core Business
• Focussed on Improvements Rather Than Power or
  Relations
• In Control of Costs
• In Close Contact With the Customer
• In Close Contact With the Supplier
• Using State of the Art Technology

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Choosing a Benchmarking Partner

• Sources of Help and Advice
• NI Quality Centre
• British Quality Foundation
• Department of Trade industry
• Employment Department - TECs
• Trade Associations
• National Measurement Accreditation Service
• British Standards Institute (BSI)

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Making Comparisons key questions

• How Big Is the Gap Between Their Performance and
  Ours?
• Are Their Methods and Experience Applicable to
  Our Situation?
• Can We Adopt and Adapt Their Methods and Learn
  From Them?

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Implementation

• Identify New Targets for Performance
• Obtain Senior Management/board Approval
• Identify and Obtain Adequate Resources
• Design Project Plan
• Implement Project
• Report and Review Benchmark.

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What can go wrong?

• Unrealistic Assumptions
• Lack of Management Commitment
• Inadequate Planning
• Inadequate Documentation
• Inadequate Training
• A Not Invented Here Mentality
• Resistance to Change
• A Desire for a Quick Fix to a Current Problem

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What can go wrong? contd

• Team Members Not Free to Participate in the
  Project
• Lack of Contingency Plan
• Failure to Update the Plan
• Failure to Communicate the Plan
• Inadequate Project Definition
• Inadequate Process Understanding
• Team Too Insular

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Key Personnel

• Project Sponsor
• Focus on Business Process
• Select Team From Wide Range of Skills
• Involved in Visits and Lessons Learned Seminars
• Sees Project Through to Implementation
• Team Leader
• Planning and Managing the Project
• Holds Meetings Reviews Progress Against
  Plan,organises Visits Recommends Improvement
• Communicates Outside the Team
• Team Members
• Determines Customers and Suppliers
• Decides on Success Criteria and Measures
• Collates Data and Recommends Changes