Benchmarking By / Mahmoud Shaqria محمود محمد شقريه
Objectives: Introduction Define benchmark key terms Mention Benefits of Benchmarking Enumerate General Principles for benchmarking Involvement Explain types of benchmarking Discuss benchmarking process List Pitfalls of successful benchmarking
Introduction Benchmarking is a process of comparison between the performance characteristics of separate, often competing organizations intended to enable each participant to improve its own performance in the marketplace. Its objectives are to obtain a clearer understanding of competitors and of customers‘ requirements. Benchmarking will also enable innovations (either of process or product) to spread more rapidly through an industry and across industries where appropriate (Beckford, 1998).
Overall, benchmarking first requires senior management commitment, particularly to supporting actions arising from the exploration. Second , it requires staff to be trained and guided in the process to ensure that maximum benefit is obtained. Finally , it requires allocation of part of the relevant employees time to enable it to be carried out (Beckford, 1998).
Definition of benchmark • Benchmarking is a process of finding what best practices are and then proposing what performance should be in the future. The three principles of benchmarking are maintaining quality, customer satisfaction and continuous improvement.
Definition of source organization: A benchmark organization is one that is widely recognized for achieving standards of performance on key indicators that others agree to and measure themselves against .
Definition of recipitient organization المنظمة المستفيدة : organizations have embraced تبنت benchmarking as an important, systematic methodology for achieving the organization's strategic objectives.
Benefits of Benchmarking : -Helps organizations understand strengths and weaknesses -Helps better satisfy the customer’s needs by establishing new standards and goals -Motivates employees to reach new standards and to be keen on new developments -Allows organization to realize what level(s) of performance is really possible by looking at others
-Documents reasons as to why these differences exist -Helps organizations to improve their competitive advantage -Is a cost-effective and time-efficient way of establishing a pool of innovative ideas
General Principles for Involvement : The more people involved, the more different view and perspectives توقعات - وجهات نظر brought to bear The more ideas generated, the better the chance of making significant changes The more people in the benchmarking process, the less difficult it is to sell the concept and any results to the workforce.
There are, in general, four types of benchmarking : 1-Competitive Benchmarking : Benchmarking is performed versus competitors and data analysis is done as to what causes the superior performance of the competitor It can be, in some respects, easier than other types of benchmarking and in some respects more difficult .
It is easier in the sense that many exogamic variables affecting health organizations performance may be the same between the source and the recipient organization, since we are talking about organizations of the same sector.
On the other hand it is more difficult because, due to the competitive nature, data recuperation will not be straight forward Advantages : – Directly relevant – Comparable practices ممارسات مماثلة & technologies – History of information Disadvantages: – Data collection difficulties – Ethical issues – Antagonism عداوة
2-Internal Benchmarking This process could be applied in organizations having multiple units (for e.g . multinationals, health organizations with sale offices around the country, with multiple factory locations within the same country) Advantages : – Sharing - Communication – Data easy to get – Good results, immediate benefit – Good practice Disadvantages – Limited focus – Internal bias
3-Process Benchmarking Here we look at processes, which may be similar, but in different organizations , producing different products, for e.g. airline industry & hospital industry looking at the process of catering their ‘clients’.
4-Generic Benchmarking We would look here at the technological aspects, the implementation and deployment of technology. How else other organizations do it? Hence the source organizations may be of same industry or from another industry Advantages – Breakthrough ideas الأفكار الخارقة – Network development – High potential for innovation
Disadvantages: – Hard to do ! – Transferring practices (learning !( – Some information not transferable – Time consuming
Before you Start benchmarking process Clear about key issues Clear strategic plan Know your key customers Key suppliers Management commitment to improvement Commitment to participation Prepared to restructure
Analytical skills Will to implement Ability to lead & develop teams Employees able to work in teams Commitment of resources Project management
Model for Benchmarking: Requirements: Simplicity , logic Clarity - explainable Emphasis on organization & planning Customer focus Consistent approach throughout the organization
Style of Benchmarking Data-driven تعتمد على البيانات - eg from an industry database Process-driven - follow the steps of the model People-driven - designed by the participants Strategy-driven - each step deployed from the strategic plan Strategy/people driven - a hybrid هجين
Phases for implementation of benchmarking Planning -Determines which process to benchmark and against what type of organization -Identify the strategic intent -Identify customers’ profiles and expectations
2. Forming the Benchmarking Teams Select the Team Members – Consult with stakeholders – Balance the roles and skills – Health organizations background Train the Teams – The model – Knowledge of tools, techniques – Leadership & communication skills – Project management
3.Collect the Data : How you perform the process – Flow charts – Customer feedback – Balanced Scorecard or Wheel How they perform the process Getting the Data – Interview guide – Post-site visit debrief استجواب
4. Analysis Following data acquisition, an analysis is performed for the performance gap between the source organization and the recipient organization. An indication of best practice is then evident 5 . Integration It involves the preparation of the recipient for implementation of actions .
6. Action This is the phase where the actions are implemented within the recipient organization : Set Goals – Close the performance gaps -meet, exceed Decide Change Processes – Adapt to match health organizations culture Prepare Budget – Commit the resources تنسيق الموارد Implement – Train, gain acceptance, support
Pitfalls of successful benchmarking ; Lack of Sponsorship Wrong people for the Team Team doesn’t fully misunderstand their own work Taking on too much Managers don’t understand Decrease level of commitment الالتزام Not relating benchmarking to strategy Misunderstanding mission Failure to review Customer’s requirement is not clear Fear of sharing information with other organizations