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Introduction to
BenchmarkingImproving Performance Based
on External Assessment
LuAnn Stokke
F2 Administration/
Strategy Management
July 27, 2010
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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?
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Benchmarking?
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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
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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
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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)
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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
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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.
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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
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Where Does Benchmarking “Fit”
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
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Where Does Benchmarking “Fit”
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
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Audit…Analyze…ID…Improve…Asse
ss
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“Hey…That Looks Sort of
Familiar!”
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Benchmarking at a Process or
Project Level
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Copying? “Industrial
Tourism”?
“old-school” benchmarking, UK style
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What is it Like Now?Remote Research/AnalysisLEAN, CPI, BSC
“Contact Us”
Process Mapping; partnering
BSC
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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
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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?”
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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?
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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)
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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
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“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
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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.
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“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 ”
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Conclusion: Impacting Value
to the Customer
MARKET NEEDS ORGANIZATIONALCAPABILITIES
MARKET SPACE
BENCHMARKINGAND CONTINUOUS
IMPROVEMENT
MARKET NEEDS ORGCAPABILITIES
MARKET SPACE