performance benchmarking (measuring success) validate/diagnose/improve presentation to: municipal...

Performance Benchmarking(Measuring Success)

Validate/Diagnose/Improve

Presentation to:Municipal Waste Management Association

2005 Fall SummitThursday, October 20, 2005

Presented By:William Schoen & Sam Chandler

R3 Consulting Group Inc.

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Benchmarking

“That which cannot be measured cannot be managed”

- Peter Drucker; Management Consultant

“That which is not measured is not managed” - R3

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Presentation Outline

• What is Benchmarking• Why Use Benchmarking• Who Uses Benchmarking• Types of Benchmarking

• Validation vs. Diagnostic• Internal vs. External

• Organizing Benchmarking Efforts• Cultivating a Relationship with Safety

[End of R3 formal presentation]

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Presentation Outline (continued)

• Open Discussion / Sharing of Ideas• Questions• What Benchmarks Are You Tracking (Internal / External)• What Additional External Benchmarks Would be of Value to

You

• MWMA Benchmarking Project• Identify Interested Member Agencies• Development of Qualified External Benchmarks• Identification of Best Management Practices

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What is Benchmarking?

A Process Involving Some or All of the Following Steps:

1. Define Operational Characteristics

2. Identifying Operational & Financial Benchmarks

3. Documenting Current Baselines

4. Documenting Historical Trends for Benchmarks

5. Ongoing Tracking of Performance vs. Baselines

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What is Benchmarking?

A Process Involving Some or All of the Following Steps:

6. Comparing Performance to Industry Standards (External Benchmarks)

7. Targeting / Prioritizing Areas for Improvement

8. Identifying Best Management Practices (BMPs)

9. Incorporating BMPs into Operations

10. Review / Refine / Repeat

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Why Use Benchmarking?

Simply stated, Benchmarking is one of the most powerful tools for initiating and sustaining continuous improvement!

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Who Uses Benchmarking?

• Bank of America• Xerox• U.S. Army• NASA• Your Colleagues• Your Competition (WMI / Allied / Republic)

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Types of Benchmarking

• Validation Big Picture “How are we doing?”

• Diagnostic Fine Print “Where and How can we improve?”

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Types of Benchmarking

• Internal• How does Current Performance Compare to

Historical Performance

• External• How does Our Performance Compare to Others

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Organizing Benchmarking Efforts

• Safety

• Customer Service

• Productivity

• Cost

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Safety

Cultivating a Relationship with Safety

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Safety

To paraphrase one of the greats:

“A community cannot buy its way to Safety”- W. Edward Deming

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Safety

Key Elements of an Enduring Benchmarked Safety System• Leadership• Commitment• Resources• Patience• Vision

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Safety

Measurable Positive Outcomes

• Elimination of Wasted Time and Motion• Work Flow Optimization• Standardization of the Work Flow• Continuously Improving Customer Services• Improved Bottom Line for the Cost Center or Public

Business Unit

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Safety

Benchmarking is a Safety Tool

• Measurement – To Improve and Control Outcomes

• Measurement – To Design and Verify Outcomes

• Measurement – To Complete Accident Reviews

(Lookbacks) and Develop New Processes

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Safety

BenchmarkingAccident Records by:

• Type• Equipment Type• Staff Member• Location• Resolution Time• Severity (Cost)• Frequency• Detection Time

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Safety

Benchmarking• On-the-Job Injuries by:

• Type• Frequency• Severity (Cost)• Resolution Time

• Accident Review History (Lookbacks)

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Safety

Management Systems

• Safety Standards• Administrative Controls• Scheduling• Deficiencies• Incentives• Hiring Practices

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Safety

Administration

• Workplace Layout Records

• Risk Assessment Records

• Training Records

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Safety

System Maintenance

• Collect Baseline Data

• Create Preliminary Quantification

• Set Up Tracking Logs

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Safety

Some Long-Term Keys• Asset Analysis• Safety Work Plans• Staff Capabilities or Knowledge• Opportunities• Motivation• Reward Success

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Benchmarking

Open Discussion / Sharing of Ideas

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Closing Thoughts

• If You Are Not Benchmarking Get Started! Safety Customer Service Productivity Cost

• If You Are An Experienced Benchmarker Take the Next Step Dig deeper Keep Measuring Success!