The Value to Project Managers at Company X Construction Industry Institute BENCHMARKING WITH CII ® Updated: March 1, 2007

What Is Project Benchmarking And Why Should A Project Manager Care? Benchmarking is a euphemism for legally ripping off someone else’s ideas…..(

Project Benchmarking Compare to Best in Class Identifies organizations with best project practices and results and assists in adapting their practices for innovation in one’s own organization or one’s own projects. Think Outside the Box Enables Project and Program Managers to learn what is possible outside their current belief system. Improve Projects and Overall System When carried out correctly, benchmarking can help individual project managers and project organizations achieve a breakthrough in their performance.

……… And Why Should A Project Manager Care? See where your project performance ranks versus other projects in your industry Achieve Breakthroughs by gaining from other’s experience Understand and improve your own performance, gain 20/20 hindsight wisdom without paying the high price of first hand experience, and attain recognition and good exposure to top management, especially in high profile projects Gain or maintain a competitive advantage Enhancing the efficiency of your project delivery system can be easily translated into cost, schedule and safety improvements. This leads to a competitive advantage in the industry.

How Can A Project Manager Be Involved In Benchmarking?  On a project level A Project manager may opt to compare his/her project performance record in terms of cost, schedule and operability to similar projects within industry; or look at the likelihood of a future project success by comparing its scope and characteristics to lessen learned from industry  On a program level Benchmarking several projects that contribute to a bigger program success  Or within an overall organizational project management process or system Examining the overall organizational project management process against industry counterparts performance to improve capital competitiveness

Why Use External Benchmarking? Impartiality Confidentiality Consistency Of Measurement Standardization Of Industry Definitions Standardization Of Industry Practices

Why Are Institutions Like CII Needed To Promote The Practice Of Benchmarking? Benchmarking involves borrowing practices and ideas from competitors in the same industry. Impartial institutions like CII are needed to regulate the flow of knowledge, retain the confidentiality of sensitive information and prevent unethical behavior such as bid rigging. CII is hence the keeper of confidential information and the provider of metrics for comparison CII develops surveys of practices and provides the quantitative metrics against which participants benchmark. CII has an established code of conduct and confidentiality policy to ensure data are treated properly

History of CII Benchmarking Chartered by the CII BOA in Nov 1993 First Committee Meeting in Feb 1994 First Data Collection in 1996 Developed on-line Questionnaire in 1999 Industry-specific Benchmarking in 2004 Integration with CII web sphere in 2007

CII Benchmarking Objectives Provide the Industry with Performance Norms Measure the Use of Selected Best Practices Quantify the Value of Best Practices Provide Member Companies tools for self-analysis

Company Continuous Improvement Program CII Research CII Knowledge Base & Training Benchmarking & Metrics Benchmarking - An Iterative Process

Benchmarking as Part of the Continuous Improvement Cycle Implement Best Practices Implement MeasureResultsMeasureResults Identify Opportunities to Improve Identify Opportunities to Improve SelectImplementationToolsSelectImplementationTools ConductTrainingConductTraining Compare to Competition/ Company Trends Compare to Competition/ Company Trends

Who Is Needed To Make This Process Work? Senior Management Benchmarking Associate Project Management CII Staff & BM&M Committee

Project ManagersCompany Benchmarking Associate Company LeadershipCII Staff, Account Mgrs. & Committee CII Benchmarking & Metrics Roadmap Responsible for Benchmarking Coordination Decision / Commitment to Benchmark as Basis for Improvement Responsible for Project Benchmarking & Improvement Develop/Improve Metrics, Processes, Policies & Procedures Develop Data Collection & Reporting Tools Perform Validation Checks, Run Analysis & Generate Reports Provide Input to Research & Implementation Conduct Training & Feedback Sessions Select Projects for Analysis & Preload/Initiate Project in CII Database Validate Questionnaires Release Questionnaire to CII Perform Self-Analysis & Develop Improvement Plan Complete Questionnaire During Project Execution Complete & Submit Questionnaire at Project Close-out Review and Act on Interim CII On-line Recommendations

Levels Of Use Of The Benchmarking System Improve Efficiency Of A Business Unit Improve Performance Of A Single Project Or A Group Of Projects Improve Efficiency Of Overall Project System Improve Selected Performance Metrics (E.g. Productivity)

Now What…? Develop a Path Forward Contact your Benchmarking Associate Identify your CII Account Manager Attend CII Benchmarking Associates Training