BENCHMARKING

For Best Practices

What is Benchmarking

◼ A method for identifying and importing best practices in order to improve performance

◼ The process of learning, adapting, and measuring outstanding practices and processes from any organization to improve performance

Why Benchmark

◼ Identify opportunities to improve performance

◼ Learn from others’ experiences

◼ Set realistic but ambitious targets

◼ Uncover strengths in one’s own organization

◼ Better prioritize and allocate resources

◼ Citizens demand effective and responsive government

◼ Voters resent waste of tax dollars

◼ People ask for greater accountability of government

◼ Weak economy forces government to provide more services with less resource

Public Sector Benchmarking

Types of Benchmarking: 1

◼ Strategic Benchmarking

How public, private, and nonprofit organizations compare with each other. It moves across industries and cities to determine what are the best strategic outcomes.

Types of Benchmarking: 2

◼ Performance Benchmarking

How public, private, and nonprofit organizations compare themselves with each other in terms of product and service. It focuses on elements of cost, technical quality, service features, speed, reliability, and other performance comparisons.

Types of Benchmarking: 3

◼ Process Benchmarking

How public, private, and nonprofit organizations compare through the identification of the most effective operating practices from many organizations that perform similar work processes.

When not to Benchmark

◼ Target is not critical to the core business functions

◼ Customer’s requirement is not clear

◼ Key stakeholders are not involved

◼ Inadequate resources to carry through

◼ No plan for implementing findings

◼ Fear of sharing information with other organizations

Benchmarking Process

Planning

CollectingData

Analysis

ImprovingPractices

1. Planning

◼ Determine the purpose and scope of the project

◼ Select the process to be benchmarked

◼ Choose the team

◼ Define the scope

◼ Develop a flow chart for the process

◼ Establish process measures

◼ Identify benchmarking partners

2. Collecting Data

◼ Conduct background research to gain thorough understanding on the process and partnering organizations

◼ Use questionnaires to gather information necessary for benchmarking

◼ Conduct site visits if additional information is needed

◼ Conduct interviews if more detail information is needed

3. Analysis

◼ Analyze quantitative data of partnering organizations and your organization

◼ Analyze qualitative data of partnering organizations and your organization

◼ Determine the performance gap

4. Improving Practices

◼ Report findings and brief management

◼ Develop an improvement implementation plan

◼ Implement process improvements

◼ Monitor performance measurements and track progress

◼ Recalibrate the process as needed

A term (Greek) used in statistics to representstandard deviation from mean value, an indicator of the degree of variation in a set of a process.

Sigma measures how far a given process deviates from perfection. Higher sigma capability, better performance

14

Six Sigma - A highly disciplined process that enables organizations deliver nearly perfect products and services.

The figure of six arrived statistically from current average maturity of most business enterprises

A philosophy and a goal: as perfect as practically possible.

A methodology and a symbol of quality.

15

Contd…

A statistical concept that measures a process in terms of defects – at the six sigma level, there 3.4 defects per million opportunities.

16

Contd…

But, it is much more!

Six Sigma is not:

•A standard

•A certification

•Another metric like percentage

Rather!•It is a Quality Philosophy and the way of improving performance by knowing where you are and where you could be.

Methodology to measure and improve company’s performance, practices and systems

17

WHAT IS SIX SIGMA

Six Sigma emerged as a natural evolution in business to increase profit by eliminating defects

The Current business environment now demands and rewards innovation more than ever before due to:

➢ Customer Expectations

➢ Technological Change

➢ Global Competition

➢ Market Fragmentation

18

Sigma Level ( Process

Capability)

Defects per Million

Opportunities

2 308,537

3 66,807

4 6,210

5 233

6 3.4

19

Six Sigma is in use in virtually all industries around the world. Some of companies can be listed as:

Motorola Ericsson General Electric Sony Ford Motor Co. CITI bank

20

BPMS

➢ Business Process Management System

DMAIC

➢ Six Sigma Improvement Methodology

DMADV

➢ Creating new process which will perform at Six Sigma

21

BPM strategies emphasize on process improvement and automation to derive performance

Combining BPM strategies with sigma six is most powerful way to improve performance

Both strategies are not mutually exclusive but some companies produced dramatic results by combining them.

22

A logical and structured approach to problem solving and process improvement.

An iterative process (continuous improvement)

A quality tool which focus on change management style.

23

Phases of Six Sigma are:

Define specific goals to achieve outcomes, consistent with customers demand and business strategy

Measure reduction of defects

Analyze problems ,cause and effects must be considered

Improve process on bases of measurements and analysis

Control process to minimize defects

24

Acronym for:

➢ Define the project

➢ Measure the opportunity

➢ Analyze the process options

➢ Design the process

➢ Verify the performance

25

Its usage depends on the type of business. In general,

“If there are processes that generate a lot of negative customer feedback, whether that customer is internal or external, the components of Six Sigma should be considered as a means to study and rectify the problem.”

26

Generates sustained success

Sets performance goal for everyone

Enhances value for customers

Accelerates rate of improvement

Promotes learning across boundaries

Executes strategic change

27

28

When practiced as a management system, Six Sigma is a high performance system for executing business strategy.

Six Sigma is a top down solution to help organizations:

Align their business strategy to critical improvement efforts

Mobilize teams to attack high impact projects Accelerate improved business results Govern efforts to ensure improvements are

sustained

29

30

Six Sigma identifies several key roles for its successful implementation:

Executive leadership

Champions

Master Black Belts (Identify projects& functions)

Black Belts (Identify non value added activities)

Green Belts ( works on small projects )

Top

Bottom

31

7QC tools✓ Check Sheets (collect data to make

improvements)✓ Pareto Charts( define problem and frequency)✓ Cause and effect diagram (Identify possible

causes to solve problem)✓ Histogram (Bar charts of accumulated data to

evaluate distribution of data)✓ Scatter diagram (plots many data points and

pattern between two variables)✓ Flow Chart (Identify unwanted steps)✓ Control charts (Control limits around mean

value)

32

If you want to make yourself more valuable and attractive to employers then get training and certification

Option I – Certification as Six Sigma Green Belt

Option II – Certification as Six Sigma Black Belt

33

Six Sigma is methodology used for:

Aligning key business processes to achieve those requirements.

Utilizing rigorous data analysis to minimize data variation in those processes.

Driving rapid and sustainable improvement to business processes.

CONCEPT OF COMPETENCY MAPPING

Personal Characteristics

Behavior Job Performance

Motive, Trait, Self-

Concept & Knowledge

CRITERIA TO MEASURE COMPETENCY & PERFORMANCE

Competency

Effective PerformanceSuperior Performance

Performance

Threshold Competencies Differentiating Competencies

THRESHOLD V/S DIFFERENTIATINGCOMPETENCIES

Must have in the job

Distinguishes superior from average performer

NEED FOR COMPETENCY MAPPING

Long learning curves & Lack of

succession planning

High Turnover & Low

retention

Poor Performance

Unrecognized training needs

Want for Organizational

change

STEPS IN DEVELOPING A COMPETENCY BASED SELECTION SYSTEM

Develop Competency Model(s) for Target job(s)

Select / Develop Assessment Methods

Train Assessors in the Assessment Method

Assess competencies of candidates for jobs

Make job-person match decisions for selection, placement and promotion

Validate Selection System

Develop a Competency based job and person database and Matching System

PERFORMANCE MANAGEMENT SYSTEM (PMS)

Pre-requisite steps

Organization Strategy

Organization Objectives

Manager/Work Unit Objective

Performance Planning

Performance Management

Start of Period

During the Period

End of Period

▪Definition of Job Responsibilities

▪Goal Setting

Performance Appraisal

COMPETENCY BASED PMS

MIXED MODEL

Need for Competency based PMS

Unfair Appraisal System

Non-serious Performance

Appraisal

Employees rated PMS worthless

Low impact of PMS on Actual Management

Inflated Performance

Ratings

APT Situations for“MIXED MODEL” Performance + Competency PMS

Uncertain Environments

Self Managing Teams

Qualitative/Process Service Jobs

Changing Organizational Strategy or Markets

TOOLS FOR COMPETENCY MAPPING

360 degree feedback

Assessment Centres