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Introduction to Benchmarking Improving Performance Based on External Assessment LuAnn Stokke F2 Administration/ Strategy Management December 8, 2010.

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Presentation on theme: "Introduction to Benchmarking Improving Performance Based on External Assessment LuAnn Stokke F2 Administration/ Strategy Management December 8, 2010."— Presentation transcript:

1 Introduction to Benchmarking Improving Performance Based on External Assessment LuAnn Stokke F2 Administration/ Strategy Management December 8, 2010

2 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 to benchmarking partners?

3 Benchmarking?

4 Benchmarking Defined “Benchmarking is the process of comparing one’s business processes and performance metrics to industry bests and/or best practices from other industries. Dimensions typically measured are quality, time, and cost. Improvements from learning mean doing things better, faster, and cheaper.” en.wikipedia.org/wiki/Benchmarking en.wikipedia.org/wiki/Benchmarking

5 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

6 Benchmark Forms: Results (or performance)

7 Benchmark Forms: Results

8 Benchmark Forms: Process

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10 Benchmark Forms: Best-practice

11 All Benchmarking is not Created Equal… Methods: ◦ Internal—compares across branches or units (e.g., one GCA customer team benchmarks budget set-up time to another team) ◦ External—compares one aspect across similar or different businesses, products or services (e.g., F2’s personnel; IT systems) ◦ Generic—external across organizations with very different products or services (e.g., client mgmt across diverse private-sector companies)

12 Methods: Internal

13 Methods: External

14 Methods: Generic

15 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

16 Group Exercise: Where are your obvious opportunities? You either want to maintain your product/service/customer leadership position, or you want to meet or beat the front-runner.

17 Where Does Benchmarking “Fit” in F2’s Strategy? Efficient Processes Strategic Plans Quality Improvement System Trained Staff Recognition Data Analysis Customer FocusEmpowered StaffProblem 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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19 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 Excellence Streamline business processes Develop effective relationships with process partners and the campus research community Identify and adapt best practices Promote a culture of continuous process improvement Embrace a culture of transparency and accountability Strategically analyze risks and benefits

20 Where Does Benchmarking “Fit” in OR’s Strategy? (OR) Attract & Retain Top, Diverse Staff Cultivate an environment that stimulates, challenges and grows staff knowledge, skills and competencies through continuous learning Encourage staff engagement and participation at all levels of process improvement and achievement of OR goals Develop OR leaders and career paths for promoting upward mobility within the organization. Add Value to the UW Work within the campus community and at a national and international level to impact UW-wide strategic initiatives, strategic research directions and policies Improve recruitment and retention of top faculty Improve integration of research and education Improve translation of research into the public benefit Promote and enhance cross-cutting research initiatives Increase and diversify external research funding

21 Audit…Analyze…ID…Improve…Assess

22 “Hey…That Looks Sort of Familiar!”

23 Benchmarking at a Process or Project Level

24 Copying? “Industrial Tourism”? “old-school” benchmarking, UK style

25 What is it Like Now? Remote Research/AnalysisLEAN, CPI, BSC “Contact Us” Process Mapping; partnering BSC

26 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 and FTE) Customer Feedback

27 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 & Data Mgmt. Peer contacts Marketing materials/annual reports Customized web searching …All to determine, “what is our performance gap?”

28 How Did They Get There? (primary data) Ask them! , 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?  Who do they benchmark?

29 TABLE EXERCISE Your unit is responsible for processing spending reports for gifted funds 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, , live) What would your questions be? (4-5 interview questions)

30 Benchmarking Protocol (business etiquette) Allow plenty of time for partners to set up visits/call arrangements Do your homework—know something about them (can’t emphasize 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 (unless they 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

31 “Creative Adaptation” Compare primary data (immediate) and secondary (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”— , memos, meetings vs. cultural norms Select high-leverage improvements and/or adjusted targets

32 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.

33 “Breakthrough Performance” and Beyond 1. Determine ROI/feasibility of alternatives— select short- and long-term 2. Coordinate and secure approvals 3. Sufficient Cooperation? Plan communication & change-management, as needed (denial— resistance—exploration—acceptance) 4. Involve the work group to maximum extent 5. Implement training, as needed 6. Remeasure/rebaseline (as needed) 7. Communicate linkage to business/strategic plan (“case for change”)

34 Conclusion: Impacting Value to the Customer MARKET NEEDS ORGANIZATIONAL CAPABILITIES MARKET SPACE BENCHMARKING AND CONTINUOUS IMPROVEMENT MARKET NEEDSORG CAPABILITIES MARKET SPACE


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