A programme for benchmarking.[check] This checklist is for managers new to benchmarking or for those wishing to review their current benchmarking practice. Benchmarking is a powerful tool for organisations seeking continuous improvement. It is an essential part of many change programmes, including total quality management and business process re-engineering See reengineering. (business) Business Process Re-engineering - (BPR) Any radical change in the way in which an organisation performs its business activities. BPR involves a fundamental re-think of the business processes followed by a redesign of business activities to . It is a challenging technique to use and requires careful management and a high level of commitment. Used effectively, it can provide organisations with a continuous competitive advantage. Various types of benchmarking exist, including: * Internal benchmarking--the measurement and comparison of practices with similar practices in other parts of the organisation. * Industry or competitive benchmarking--industry-specific comparisons made either between direct competitors or with target companies making dissimilar products in the same industry. * Functional or non-competitive benchmarking--the direct comparison of a function in two or more organisations, which may or may not be in the same industry. * Generic or best practice/world class benchmarking--benchmarking of the best practice of recognised world class organisations. Most organisations can use either one or a mixture of these. Definition Benchmarking is the ongoing structured process of identifying, understanding and adapting outstanding practices of industry leaders to help an organisation improve its performance and achieve and sustain competitive advantage. Advantages of benchmarking * Aids the setting or stretching of performance goals. * Focuses on and accelerates change. * Motivates staff by showing what is possible. * Provides an early warning of competitive disadvantage. Disadvantages of benchmarking Benchmarking can fail for a number of reasons, including a lack of commitment, focus or resources However there are no substantial disadvantages to benchmarking. Action checklist 1. Plan your study Identify the critical performance factors at which you wish to excel and from these select the broad areas in which to benchmark. Focus on those activities which are of real importance to your organisation, avoiding the irrelevant, or those activities chosen simply because they are easy to measure. Select a small number of related processes to benchmark. Do not be too ambitious at this stage, particularly if this is the first benchmarking project your organisation has undertaken. When selecting processes to benchmark remember the critical success factors--benchmarking must have the support of senior management, be part of organisational strategy, and be based upon a sound understanding of your own processes. Consider the legal and ethical issues of competitive benchmarking. Confidentiality and data security are important issues for benchmarking partners and groups. 2. Identifying personnel Select a benchmarking team and a team leader. Most benchmarking is done by teams to take advantage of the range of skills and knowledge that they can offer--either use an intact work group, a cross-functional team In business, a cross-functional team is a group of people with different functional expertise working toward a common goal. It may include people from finance, marketing, operations, and human resources departments. or a functional team (six members is an average team size). Although much work will be carried out by the benchmarking team, it is advantageous to encourage the participation of all staff, as benchmarking may identify gaps in performance which may require radical change anywhere within the organisation. The involvement of process owners The process owner is the person who co-ordinates the various functions and work activities at all levels of a process. This person might have the authority or ability to make changes in the process as required, and manages the entire process cycle to ensure performance ensures they are part of the evaluation process and can become the champions of change. 3. Examine the process(es) to be benchmarked Document the process(es) to be benchmarked to gain an understanding of the activities involved. Simple flow charts can be useful aids to help define the inputs to, and outputs from, the process. It is possible that a number of elements could be measured, so it is important determine those which are true indicators of performance. 4. Data collection Data are required in order to make a comparison between organisations or parts of an organisation. This may be in the form of statistics, ratios or detailed case studies and descriptions. As the key to the success of benchmarking projects the data collection process should be carefully planned. Only collect the data required for the decision making process: collecting too much data can be as bad as collecting the wrong data. 5. Identify benchmarking partners Consider internal sources (different departments, divisions or companies within the organisation) and external partners (competitors, similar industries or best practice/world class performers). Sources that can help in identifying partners include trade and industry journals, market research reports, government studies, databases, suppliers, customers, corporate networks and study tours. Consider contacting a benchmarking clearing house or a joint interest group. Organisations interested in benchmarking are listed under "Useful addresses". Solicit the participation of partners. Organisations are often willing to become involved if they can see that they will also benefit from benchmarking--it should after all be a two-way process. You must be willing to share data and findings as well as respecting confidentiality if requested. 6. Plan and implement the comparison exercise Identify the hard and soft issues which need to be measured. Hard issues include ratios, time and costs. Soft issues might include management style, communications, or customer focus. Prepare an action plan. Identify who will collect the data, from where and when. An appropriate survey or interview guide should be developed by the benchmarking team. Questionnaires can be sent by post, completed over the telephone or via site visits. Decide which is the most appropriate for your requirements. Collect the data. It is easy to underestimate the time needed to collect the data--err on the side of caution when arranging fact-finding fact-find·ing n. Discovery or determination of facts or accurate information. adj. Of, relating to, or used in the discovery or determination of facts: a fact-finding committee; a fact-finding tour. interviews 7. Collate the data from your organisation and its benchmarking partners. Draw up a matrix of performance indicators from your benchmarking partners (the use of spreadsheets The following is a list of spreadsheets. Freeware/open source software Online spreadsheets
Compare your current performance against the data. Identify where your organisation misses certain elements, fails to match the targets of others and generally needs to improve. The benchmarking team should try to identify the causes of these failures and, with relevant additional staff, plan to remedy them. It is useful to research case studies of best practice, as they can form useful aids to help communicate the objectives of change. Involve process owners in setting goals to close, meet and exceed the gaps in performance. The benchmarking team should develop detailed action plans, ensuring measures of success are included. 8. Plan and action improvements When business benefits resulting from change have been identified, communicate the benchmarking findings. By demonstrating benefits, support for change will be greater. Implement the plan, making use of 'process champions' throughout the organisation as catalysts for change. It is at this stage that resources will need to be committed, so it is essential to have senior management support for the project. 9. Monitor and review Monitor whether the study met its objectives; the impact of the improvements on the organisation; the evidence of a change in the process; the value of the changes to the organisation; the willingness and the barriers to change. Evaluate the success of the project. Decide if further change is required. Select the next process to benchmark. Maintaining momentum is one of the most challenging problems in benchmarking. Dos and don'ts for benchmarking Do * Ensure senior management support. * Ensure that it is a team activity. * Understand your own processes before starting to look at those of other people. Don't don't 1. Contraction of do not. 2. Nonstandard Contraction of does not. n. A statement of what should not be done: a list of the dos and don'ts. * Be too ambitious at the start. * Underestimate the need for a willingness to change and an openness for new ideas "New Ideas" is the debut single by Scottish New Wave/Indie Rock act The Dykeenies. It was first released as a Double A-side with "Will It Happen Tonight?" on July 17, 2006. The band also recorded a video for the track. . * View benchmarking as a tool for providing short-term gains Short-term gain (or loss) A profit or loss realized from the sale of securities held for less than a year that is taxed at normal income tax rates if the net total is positive. . Useful reading Identifying best practices in benchmarking, Jacky Jack´y n. 1. Dim. or pet from Jack Holloway Holloway may refer to: Place names:
London, city (1991 pop. 303,165), SE Ont., Canada, on the Thames River. The site was chosen in 1792 by Governor Simcoe to be the capital of Upper Canada, but York was made capital instead. London was settled in 1826. : CIMA, 1999 Benchmarking best practice, Rachel Rachel, in the Bible Rachel (rā`chəl), in the Bible, wife of Jacob and mother of Joseph and Benjamin. She is one of the four Jewish matriarchs. An alternate form is Rahel. Gooch Gooch may stand for:
Effective management of benchmarking projects, Mohamed Zairi Professor Mohamed Zairi BSc MSc (Aston) PhD (CNAA) is a British academic and expert in Total Quality Management (TQM). He is Professor of Best Practice Management and Director of the European Centre for TQM at the University of Bradford School of Management in Bradford, Oxford: Butterworth Heinemann Heinemann may refer to:
Useful addresses Best Practice Club, 39 Cambridge Cambridge, city, Canada Cambridge (kām`brĭj), city (1991 pop. 92,772), S Ont., Canada, on the Grand River, NW of Hamilton. It was formed in 1973 with the amalgamation of Galt, Hespeler, and Preston, all founded in the early 19th cent. Place, Cambridge, CB2 1NS Tel: 01223 355955 www.bpclub.com Centre for Interfirm Comparison interfirm comparison a technique for assessing the financial profitability of a veterinary practice by comparing it on the basis of a number of criteria with other practices in similar situations. The practices are rated according to their performance in each area, e.g. 32 Thomas Street This article is about an English astronomer, for the street in central Dublin, Ireland, see Thomas Street. For the street in central Perth, Australia, see Thomas Street. Thomas Street (also spelled Streete) (1621—1689) was an English astronomer. , Winchester, Hampshire Hampshire, county (1991 pop. 1,511,900), 1,503 sq mi (3,893 sq km), S central England. Winchester is the county town. The terrain is undulating and is crossed by two chalk downs, rising in places to more than 800 ft (244 m). , SO23 9HJ Tel: 01962 844144 www.cifc.co.uk PIMS PIMS Pacific Institute for the Mathematical Sciences PIMS Penalty Minutes (hockey) PIMS Pakistan Institute of Medical Sciences PIMS Profit Impact of Market Strategy PIMS Project Information Management System Europe, 15 Basinghall Street, London, EC2V 5BR Tel: 020 7776 2800 www.pimsconsulting.co.uk Thought starters * Is the performance of your organisation as good as it could be? * How do you match up to the performance of competitors? * Are you focusing purely on financial measures or have you considered all your key processes? * How do your processes compare with those being run by other organisations? |
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