introduction to benchmarkingfinal0726

7/29/2019 Introduction to BenchmarkingFINAL0726

http://slidepdf.com/reader/full/introduction-to-benchmarkingfinal0726 1/25

Introduction to

BenchmarkingImproving Performance Based

on External Assessment

LuAnn Stokke

F2 Administration/

Strategy Management

July 27, 2010



Today’s Agenda

What is benchmarking? Why do people do it?

Why should we do it?

How is it done? What do you do with the data or

information you get?

What’s “benchmarking protocol”?

Is there any ongoing commitment topartners?



Benchmarking?



Benchmarking Defined

“Benchmarking is the process of comparing one’s business processes and

performance metrics to industry bests

and/or best practices from otherindustries. Dimensions typically

measured are quality , time , and cost.

Improvements from learning mean doingthings better, faster, and cheaper.” en.wikipedia.org/wiki/Benchmarking

http://www.google.com/url?q=http://en.wikipedia.org/wiki/Benchmarking&sa=X&ei=OoZETPueNI2CsQPnvKz-DA&ved=0CBYQpAMoAA&usg=AFQjCNHjQPi905tUon8-EecBHo0b3yUbdw

http://www.google.com/url?q=http://en.wikipedia.org/wiki/Benchmarking&sa=X&ei=OoZETPueNI2CsQPnvKz-DA&ved=0CBYQpAMoAA&usg=AFQjCNHjQPi905tUon8-EecBHo0b3yUbdw



All Benchmarking is

not Created Equal… Forms:

◦ “results ”—comparative performance

within and between organizations

(efficiency/effectiveness)◦ “process ”—analysis of activities and

tasks that turn resources inputs into

outputs and outcomes

◦ “best-practice standards ”—take the

form of goals and benchmarks to which

orgs aspire, as part of planning and

continuous improvement



All Benchmarking is

not Created Equal… Methods:

◦ Internal —compares across branches or units (e.g., one GCA customer teambenchmarks budget set-up time toanother team)

◦ External —compares one aspect acrosssimilar or different businesses, productsor services (e.g., F2’s personnel; ITsystems)

◦ Generic —external across organizationswith very different products or services(e.g., client mgmt across diverse private-sector companies)



When Should you Consider

Benchmarking?

You need to know more about how your cost and

quality levels compare to best practice

Budget resources are under pressure and

necessary investments for growth in demand have

to be financed

Program revenue or client demand is under

pressure

Client service standards are being created, or

require improvement



Group Exercise:Where are your

obviousopportunities?

You either want to maintain your product/service/customer leadership position, or youwant to meet or beat the front-runner.



Where Does Benchmarking “Fit”

in F2’s Strategy?

Efficient

Processes

Strategic Plans

Quality Improvement SystemTrained Staff Recognition Data Analysis

Customer Focus Empowered Staff Problem Solving

Teamwork Quality Processes Measurement Systems

Vision

Delighted

Customers

Leaders Staff Trustworthy Trustworthy

Trusting of Others Trusting of Others

Approachable, Inspiring Collaborative, Committed




in OR’s Strategy?

Add Value to the Overall Research Experience

Provide exceptional research administrative services while effectively

managing risks and opportunities

Develop strategies and a plan for open and clear communication

Improve access to key information

Improve researcher productivity and satisfaction by reducing

administrative burden

Decrease barriers to collaboration

Achieve Operational ExcellenceStreamline business processesDevelop effective relationships with process partners and the campus

research community

Identify and adapt best practicesPromote a culture of continuous process improvementEmbrace a culture of transparency and accountability

Strategically analyze risks and benefits




in OR’s Strategy? (OR)

Attract & Retain Top, Diverse StaffCultivate an environment that stimulates, challenges and grows staffknowledge, skills and competencies through continuous learning

Encourage staff engagement and participation at all levels of process

improvement and achievement of OR goalsDevelop OR leaders and career paths for promoting upward mobilitywithin the organization.

Add Value to the UWWork within the campus community and at a national and international

level to impact UW-wide strategic initiatives, strategic research directionsand policiesImprove recruitment and retention of top faculty

Improve integration of research and educationImprove translation of research into the public benefitPromote and enhance cross-cutting research initiatives

Increase and diversify external research funding



Audit…Analyze…ID…Improve…Asse

ss



“Hey…That Looks Sort of

Familiar!”



Benchmarking at a Process or

Project Level



Copying? “Industrial

Tourism”?

“old-school” benchmarking, UK style



What is it Like Now?Remote Research/AnalysisLEAN, CPI, BSC

“Contact Us”

Process Mapping; partnering

BSC



What is our Performance Level?

How do we do it? Operational performance—what

“matters” (to strategy, customers,

bottom-line, stakeholders)

Dashboards and scorecards LEAN current-process maps

Process maps from PI projects

F2’s productivity data (widgets andFTE)

Customer Feedback



What are Others’ Performance

Levels? (secondary data)

Reports (e.g., Hackett, UBER)

Consortia and Existing Organizations (e.g.,NACUBO, AAU, IPEDS, APPA)

Media (e.g., Princeton Review, U. S. News &World Report)

UW P&B—Institutional Research & DataMgmt.

Peer contacts

Marketing materials/annual reports Customized web searching

…All to determine, “what is our

performance gap?”



How Did They Get There?

(primary data)

Ask them!

E-mail, conference call,

videoconference, or live visit (if they’re

local) Determine if their performance is “best in

class”

Investigate similarities and differences

Identify constraints What was their quality journey? (where did

they start?)

What resources did they apply to achieve

their performance level?

http://www.google.com/imgres?imgurl=http://annie8886.files.wordpress.com/2007/12/interview2.jpg&imgrefurl=http://jobs.change.org/blog/sector_switchers/interviewing&usg=__rSkUDatFsDGRsoMq2LutKTzc6oM=&h=720&w=477&sz=92&hl=en&start=33&sig2=X0qmqWX2z4dpnOi9vNUsow&itbs=1&tbnid=BFrxDRuXnrtxeM:&tbnh=140&tbnw=93&prev=/images?q=interview&start=20&hl=en&sa=N&gbv=2&ndsp=20&tbs=isch:1&ei=CdtFTIHAI4G6sQPJ7cmAAg



TABLE EXERCISE

Your unit is responsible for processing spending reports for giftedfunds and submitting them to donors, correctly and within 10 days

of the end of the quarter. Your current on-time performance is 78%,

and your error-rate averages 91% correct (9% of your reports must

be recalculated and redistributed).

You learn from one of your major (and disgruntled) donors that

Seattle Pacific University completes similar donor reports, and

according to her, they are “always on time” and “always correct.”

Who would you seek out at SPU to talk to?

How would you contact them, and what would you say?What form would your interview take? (e.g., phone,

email, live)

What would your questions be? (4-5 interview

questions)



Benchmarking Protocol

(business etiquette) Allow plenty of time for partners to set up visits/callarrangements

Do your homework—know something about them (can’temphasize this enough!)

Zone in on key questions—don’t extend the scheduled time

Listen; seek first to understand

Avoid head-to-head comparisons while in the meeting (unlessthey ask)

You’re there to inquire; not advocate

Maintain confidences; they may share sensitive information

Bring a “leave-behind” (and business cards)

Take copious notes; share them after the meeting, asking for correction or clarification

Wear comfortable shoes*

Send prompt thank-you’s

Figure out reciprocation beforehand



“Creative Adaptation”

Compare primary data (immediate) andsecondary (collected) data

Validate what’s applicable to your performance objective (may need to “chunk

out”) Assess internally: is “not-invented-here”

syndrome an issue?

Identify what enablers are necessary

Communication “hardware and software”—email, memos, meetings vs. cultural norms

Select high-leverage improvements and/or adjusted targets



Today’s Hybrid Method

(spendy, but effective)

Companies and public-

sector organizations are

relying on

consultants/vendors to: Identify peer groups Oversee peer-group “visits” or data-collection efforts (using web-

enabled, customer-fed systems)

Analyze performance data

Identify and promulgate best practices

Report out to senior management

Provide recommendations for improvement Host consortia of peers and industry leaders

(Examples: Bain, Hackett, UBER)

Or…paying membership fees to professional organizations for

detailed benchmark data.



“Breakthrough Performance” and

Beyond1.Determine ROI/feasibility of

alternatives—select short- and long-term2.Coordinate and secure approvals3.Sufficient Cooperation? Plan

communication & change-management,as needed (denial —resistance —exploration —acceptance)

4.Involve the work group to maximum

extent5.Implement training, as needed6.Remeasure/rebaseline (as needed)7.Communicate linkage to

business/strategic plan (“case for ”



Conclusion: Impacting Value

to the Customer

MARKET NEEDS ORGANIZATIONALCAPABILITIES

MARKET SPACE

BENCHMARKINGAND CONTINUOUS

IMPROVEMENT

MARKET NEEDS ORGCAPABILITIES

MARKET SPACE

introduction to benchmarkingfinal0726

Documents