Benchmarking Performance If you can’t measure it, you can’t manage it. March 22, 2012

Our webinar will begin in a few minutes. “Figuring out the right things to do isn’t nearly as difficult as continuing to do them over the long term.” Our webinar will begin in a few minutes.

Benchmarking Performance If you can’t measure it, you can’t manage it. March 22, 2012

Our webinar will begin in a few minutes. “Remember: The problem for most of us isn’t knowing what to do… it’s doing it.” Our webinar will begin in a few minutes.

Benchmarking Performance If you can’t measure it, you can’t manage it. March 22, 2012

Our webinar will begin in a few minutes. “The greatest attribute for any business leader is perseverance.” Our webinar will begin in a few minutes.

Benchmarking Performance If you can’t measure it, you can’t manage it. March 22, 2012

Our webinar will begin in a few minutes. “All organizations are perfectly designed to get the results they are now getting. If we want different results, we must change the way we do things.” Tom Northup Our webinar will begin in a few minutes.

Benchmarking Performance If you can’t measure it, you can’t manage it. March 22, 2012

Our webinar will begin in a few minutes. “It’s useful to think of excellence in two broad categories: Customer excellence and business excellence.” Our webinar will begin in a few minutes.

Benchmarking Performance If you can’t measure it, you can’t manage it. March 22, 2012

Our webinar will begin in a few minutes. “Satisfied customers drive business success – and business success enables investment to satisfy customers.” Our webinar will begin in a few minutes.

Benchmarking Performance If you can’t measure it, you can’t manage it. March 22, 2012

Our webinar will begin in a few minutes. “Excellence is not a destination; it is a continuous journey that never ends.” Brian Tracy Our webinar will begin in a few minutes.

Benchmarking Performance If you can’t measure it, you can’t manage it. March 22, 2012

Our webinar will begin in a few minutes. “We are what we repeatedly do. Excellence, then, is not an act but a habit.” Aristotle Our webinar will begin in a few minutes.

Benchmarking Performance If you can’t measure it, you can’t manage it. March 22, 2012

Our webinar will begin in a few minutes. “People go in the direction leadership is walking, not pointing.” Our webinar will begin in a few minutes.

Benchmarking Performance If you can’t measure it, you can’t manage it. March 22, 2012

Our webinar will begin in a few minutes. “Every job is a self-portrait of the person who does it. Autograph your work with excellence. “ Unknown Our webinar will begin in a few minutes.

Benchmarking Performance If you can’t measure it, you can’t manage it. March 22, 2012

Our webinar will begin in a few minutes. “Excellence is doing ordinary things extraordinarily well." John W. Gardner Our webinar will begin in a few minutes.

Benchmarking Performance If you can’t measure it, you can’t manage it. March 22, 2012

Our webinar will begin in a few minutes. “Discipline is the bridge between goals and accomplishments.” Jim Rohn Our webinar will begin in a few minutes.

Benchmarking Performance If you can’t measure it, you can’t manage it. March 22, 2012

Our webinar will begin in a few minutes. "Measure is the ability to mesh strategy with reality, align people with goals, and achieve the promised results.“ Larry Bossidy Our webinar will begin in a few minutes.

Benchmarking Performance If you can’t measure it, you can’t manage it. March 22, 2012

Our webinar will begin in a few minutes. “The strategic agenda demands discipline and continuity; its enemies are distraction and compromise.” Michael E. Porter Our webinar will begin in a few minutes.

Benchmarking Performance If you can’t measure it, you can’t manage it. March 22, 2012

Our webinar will begin in a few minutes. “One of the major barriers to achieving lasting excellence is how little formal effort organizations put into learning how to execute strategy.” Our webinar will begin in a few minutes.

Benchmarking Performance If you can’t measure it, you can’t manage it. REMINDER: START RECORDING UNMUTE VOIP UNMUTE PHONE ENSURE SLIDES ARE BEING SEEN BY AUDIENCE STARTING SLIDE Hello and welcome to today’s webinar, 360 Degree Feedback – improving performance through peer input. March 22, 2012

Your Presenter Matt Lauth Managing Partner Strategy Execution Advisors Certified Business Coach My name is Matt Lauth. I am the managing partner at Strategy Execution Advisors and I’ll be hosting today’s webinar. Today’s webinar is being recorded and the presentation will be made available at the end of the webinar on our website. To minimize background noise all phones have been placed on mute. Throughout the next hour, if you have questions or comments please submit them through the “Question” pane of the GotoWebinar application that is along the right side of your screen.

Benchmarking Performance Join me to find out how the Six Disciplines Program supports Benchmarking Performance. During this webinar you'll learn: 1. What is a Benchmarking Performance ? 2. Where does it fit in the overall management of performance in my organization? 3. Why is it important? 4. How do I go about creating one? 5. How do I use it to manage the business?

"Measure is the ability to mesh strategy with reality, align people with goals, and achieve the promised results.“ Larry Bossidy

What does benchmarking mean? 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. In the process of benchmarking, management identifies the best firms in their industry, or in another industry where similar processes exist, and compare the results and processes of those studied (the "targets") to one's own results and processes. In this way, they learn how well the targets perform and, more importantly, the business processes that explain why these firms are successful. Source: Wikipedia

Poll Questions Let’s take a quick pause….I’d like to get your input on a few poll questions…. Does your organization do benchmarking? Is it focused on internal comparison, external comparison or both? Are corporate goals tied to benchmarking?

Challenges Getting good data (internally) Getting good data (externally) Clarity of what you are comparing Consistency and discipline to do the comparison Having established targets Benchmarking strategy – what makes you different Relating to operational effectiveness and strategy © 2004-2007 Six Disciplines, LLC All Rights Reserved.

Strategy Strategy is about making choices and trade-offs; it's about deliberately choosing to be different. The essence of strategy is that you must set limits on what you're trying to accomplish. The company without a strategy is willing to try anything. If all you're trying to do is essentially the same thing as your rivals, then it's unlikely that you'll be very successful. Source: Michael Porter © 2004-2007 Six Disciplines, LLC All Rights Reserved.

Operational Effectiveness Operational effectiveness is about things that you really shouldn't have to make choices on; it's about what's good for everybody and about what every business should be doing. Operational effectiveness is not strategy because it can easily be replicated. Source: Michael Porter © 2004-2007 Six Disciplines, LLC All Rights Reserved.

Benchmarking Dilemma Since strategy is what makes you different, or unique, in the marketplace, it is difficult to benchmark. The primary benchmarking needs to come from within. Operational effectiveness are the common activities that can more easily be benchmarked both from within the organization as well as against outside organizations. © 2004-2007 Six Disciplines, LLC All Rights Reserved.

Recommendations Identify the key strategic items you’ll benchmark yourself against. Identify the key operational items you’ll benchmark yourself against. Identify the best external sources for data. Identify the best organizations to benchmark yourself against. Engrain the benchmarking activities within the larger process of business building and strategy execution. © 2004-2007 Six Disciplines, LLC All Rights Reserved.

Strategy Benchmarking Balance scorecard that reflects the strategic agenda of the organization. This should be created as part of strategic planning. Benchmarking of strategy will be primarily internal since it is focused on what differentiates you to your customers. Establish clear measures and targets © 2004-2007 Six Disciplines, LLC All Rights Reserved.

Operational Benchmarking Organized around the structure of the organization. Mixture of unique activities (i.e. tied to strategy) And, best-practices unique to the function (operational excellence) Create a balanced scorecard for each department/division/team in the organization Identify the external sources you will compare yourself to. Establish clear targets © 2004-2007 Six Disciplines, LLC All Rights Reserved.

External Sources Identify the sources of benchmark data Public information is readily available Compare to economy, industry and market Take a balanced approach: financial, market, process, people. Ensure sources can provide the data in the form you need and within the budget you can afford Look for Baldrige winners in your industry © 2004-2007 Six Disciplines, LLC All Rights Reserved.

BizMiner © 2004-2007 Six Disciplines, LLC All Rights Reserved.

Why Baldrige? Systematic Approaches Grow Assets 135% faster SOURCE: Hendricks, K.B. and Singhal, V.R. (1999). US Research: 600 WW Excellence Programs, 5 years © 2004-2007 Six Disciplines, LLC All Rights Reserved.

Comparable Organizations Identify the organizations you want to benchmark yourself against. Same industry? Competitors Different industry? Role models, best in class Review commonly available data points: financial, customer loyalty (NPS), growth, profit, operational performance © 2004-2007 Six Disciplines, LLC All Rights Reserved.

Business Building Process © 2004-2007 Six Disciplines, LLC All Rights Reserved.

Six Disciplines © 2004-2007 Six Disciplines, LLC All Rights Reserved.

Summary Benchmarking is a best practice Understand difference between strategy and operational effectiveness Benchmark from the inside and the outside Establish clear targets Establish clear data sources Factor benchmarking into overall business building activities © 2004-2007 Six Disciplines, LLC All Rights Reserved.

www.StrategyExecutionAdvisors.com

Upcoming Webinars

For more information and to register, visit: Upcoming Webinars March 22nd: Benchmarking Performance March 29th: Quarterly Review Process Here’s a list of the upcoming webinars. Today’s webinar, along with the PowerPoint presentation slides will be uploaded to our website and will be available by end of day today. You can visit our website to learn more and to register. Past webinars have been recorded and are available on the website at the URL listed. For more information and to register, visit: www.StrategyExecutionAdvisors.com/webinars

You can visit our website to learn more and to register for upcoming webinars. Past webinars have been recorded and are available on the website at the URL listed.

Thank You! Matt Lauth mlauth@sxadvisors.com (419) 348-8046 Thank you for attending today’s webcast. Here’s my contact information, please contact me to discuss how we can help your organization. It’s fitting for any organization, regardless of size or industry. Now let’s answer some questions. REMINDER: STOP RECORDING Survey Questions: 1. How would your rate your overall satisfaction with the webinar? Excellent, Very Good, Good, Fair, Poor Would you recommend this webinar to a colleague? Yes, No What could we do to make webinars like this more effective for you? Essay response What topics would you like to see covered in future webinars? Essay response Matt Lauth mlauth@sxadvisors.com (419) 348-8046