1. Benchmarking Presented by: Darya Balyasnikova

2. What is Benchmarking? Comparative method for firms based on best practices in the industry Reference point used in order to bring superior results

3. Benchmarking Targets Prime competitors –Benefit: high level of granularity –Possible drawback: competitors not willing to share their best practices

4. Benchmarking Targets (cont.) The organization itself –Division to division –Spread by training –Benefits: Cost effective Easy to get information –Drawback: May miss the bigger picture

5. Benchmarking Targets (cont.) Best in Industry –Finding industry leader and learning what they do that is so much better than you –Getting close to the competitor and learning from them –Drawback: competition for information

6. Benchmarking Targets (cont.) World Class –Comparing against the best in the world –Drawback: very high competition for information

7. Types Performance Benchmarking –Comparison of one’s own performance with another organization’s performance Involves comparing products and services with other firms

8. Types (cont.) Best Practice Benchmarking –Observation and investigation of business processes Benchmarks cost and efficiency

9. Types (cont.) Strategic Benchmarking –Compares long-term decisions and actions Functional Benchmarking –Compares functions regardless of the industry

10. Types (cont.) Financial Benchmarking –Examines overall competitiveness Generic Benchmarking –Comparison against best practices in any type of organization

11. Types of Benchmarking (cont.) Product Benchmarking –Leads to designing new products/upgrades to existent products –May involve reverse engineering Xerox Corporation

12. The Benchmarking Process: Planning Identify what is to be benchmarked Identify comparative companies Determine data collection method Collect data

13. The Benchmarking Process: Analysis Determine current performance gaps Project future performance levels

14. The Benchmarking Process: Integration Communicate benchmark findings and gain acceptance Establish functional goals

15. The Benchmarking Process: Action Develop action plans Implement specific actions and monitor and report progress

16. The Benchmarking Process: Maturity Leadership position attained Practices fully integrated into processes

17. Cost of Benchmarking Moderately expensive process: –Travel costs –Time costs –Database costs

18. Some Stats Global Benchmarking Network survey (2008) –450 organizations from over 40 countries –77% used mission and vision statements/customer surveys –72% used SWOT analysis –68% used Informal Benchmarking –49% used Performance Benchmarking –39% used Best Practice Benchmarking

19. Advantages Minimizes costs Saves time Initiates formulation of strategic goals and objectives Facilitates organizational learning Forces organization to think “outside the box” Brings improvement in critical areas

20. Top Benchmarking Companies of 2011 APQC HCL Expense Management Alpine Access TechCaliber Consulting BPA International AOTMP PSS Product Support Solutions A1 Electronics Inc. DEVEO

21. Conclusion Benchmarking = good learning opportunity –Stimulates creativity –Stretches cognitive abilities Possibilities of bringing about useful changes “Seeing is believing”

22. Thank You Presented by: –Darya Balyasnikova DEM Program at UTM CCT355 November 21, 2011 Questions? –E-mail me: darya.ova@gmail.com