Performance Benchmarking (Measuring Success) Validate/Diagnose/Improve Presentation to: Municipal Waste Management Association 2005 Fall Summit Thursday, October 20, 2005 Presented By: William Schoen & Sam Chandler R3 Consulting Group Inc.

Validate / Diagnose / Improve 2 Benchmarking “That which cannot be measured cannot be managed” - Peter Drucker; Management Consultant “That which is not measured is not managed” - R3

Validate / Diagnose / Improve 3 Presentation Outline What is Benchmarking Why Use Benchmarking Who Uses Benchmarking Types of Benchmarking Validation vs. Diagnostic Internal vs. External Organizing Benchmarking Efforts Cultivating a Relationship with Safety [End of R3 formal presentation]

Validate / Diagnose / Improve 4 Presentation Outline (continued) Open Discussion / Sharing of Ideas Questions What Benchmarks Are You Tracking (Internal / External) What Additional External Benchmarks Would be of Value to You MWMA Benchmarking Project Identify Interested Member Agencies Development of Qualified External Benchmarks Identification of Best Management Practices

Validate / Diagnose / Improve 5 What is Benchmarking? A Process Involving Some or All of the Following Steps: 1.Define Operational Characteristics 2.Identifying Operational & Financial Benchmarks 3.Documenting Current Baselines 4.Documenting Historical Trends for Benchmarks 5.Ongoing Tracking of Performance vs. Baselines

Validate / Diagnose / Improve 6 What is Benchmarking? A Process Involving Some or All of the Following Steps: 6.Comparing Performance to Industry Standards (External Benchmarks) 7.Targeting / Prioritizing Areas for Improvement 8.Identifying Best Management Practices (BMPs) 9.Incorporating BMPs into Operations 10.Review / Refine / Repeat

Validate / Diagnose / Improve 7 Why Use Benchmarking? Simply stated, Benchmarking is one of the most powerful tools for initiating and sustaining continuous improvement!

Validate / Diagnose / Improve 8 Who Uses Benchmarking? Bank of America Xerox U.S. Army NASA Your Colleagues Your Competition (WMI / Allied / Republic)

Validate / Diagnose / Improve 9 Types of Benchmarking Validation Big Picture “How are we doing?” Diagnostic Fine Print “Where and How can we improve?”

Validate / Diagnose / Improve 10 Types of Benchmarking Internal How does Current Performance Compare to Historical Performance External How does Our Performance Compare to Others

Validate / Diagnose / Improve 11 Organizing Benchmarking Efforts Safety Customer Service Productivity Cost

Validate / Diagnose / Improve 12 Safety Cultivating a Relationship with Safety

Validate / Diagnose / Improve 13 Safety To paraphrase one of the greats: “A community cannot buy its way to Safety” - W. Edward Deming

Validate / Diagnose / Improve 14 Safety Key Elements of an Enduring Benchmarked Safety System Leadership Commitment Resources Patience Vision

Validate / Diagnose / Improve 15 Safety Measurable Positive Outcomes Elimination of Wasted Time and Motion Work Flow Optimization Standardization of the Work Flow Continuously Improving Customer Services Improved Bottom Line for the Cost Center or Public Business Unit

Validate / Diagnose / Improve 16 Safety Benchmarking is a Safety Tool Measurement – To Improve and Control Outcomes Measurement – To Design and Verify Outcomes Measurement – To Complete Accident Reviews (Lookbacks) and Develop New Processes

Validate / Diagnose / Improve 17 Safety Benchmarking Accident Records by: Type Equipment Type Staff Member Location Resolution Time Severity (Cost) Frequency Detection Time

Validate / Diagnose / Improve 18 Safety Benchmarking On-the-Job Injuries by: Type Frequency Severity (Cost) Resolution Time Accident Review History (Lookbacks)

Validate / Diagnose / Improve 19 Safety Management Systems Safety Standards Administrative Controls Scheduling Deficiencies Incentives Hiring Practices

Validate / Diagnose / Improve 20 Safety Administration Workplace Layout Records Risk Assessment Records Training Records

Validate / Diagnose / Improve 21 Safety System Maintenance Collect Baseline Data Create Preliminary Quantification Set Up Tracking Logs

Validate / Diagnose / Improve 22 Safety Some Long-Term Keys Asset Analysis Safety Work Plans Staff Capabilities or Knowledge Opportunities Motivation Reward Success

Validate / Diagnose / Improve 23 Benchmarking Open Discussion / Sharing of Ideas

Validate / Diagnose / Improve 24 Closing Thoughts If You Are Not Benchmarking Get Started! Safety Customer Service Productivity Cost If You Are An Experienced Benchmarker Take the Next Step Dig deeper Keep Measuring Success!