1. BS1036 Quality Management in the Public Sector
7: Quality Tools and Techniques - Benchmarking

2. ‘outstanding’ rather than ‘best’ ‘adapting’ not ‘adopting’
BS1036 Quality Management in the Public Sector 7: Quality Tools and Techniques - Benchmarking
Definition:
‘the process of identifying, understanding and adapting outstanding practices and processes from organisations anywhere in the world in order to help your own organisation to improve its performance’ NB
‘outstanding’ rather than ‘best’
‘adapting’ not ‘adopting’

3. Benchmarking is a managed change process which:
BS1036 Quality Management in the Public Sector 7: Quality Tools and Techniques - Benchmarking
Why benchmark ?
Compete - or die! As Deming says.. ‘You do not have to do these things. Survival is not compulsory’
Benchmarking is a managed change process which:
Uses a disciplined, structured approach
Identifies what needs to change
Identifies how to change it
Identifies the potential for improvement
- Creates the desire for change

4. ************* Baseline ******************** Achievable
BS1036 Quality Management in the Public Sector 7: Quality Tools and Techniques - Benchmarking
Levels of attainment…
************* Baseline
******************** Achievable
*************************** Benchmark
************************************* Long term goal
Benchmarks should not be unrealistically high or low… ‘a man’s reach must exceed his grasp or what’s a heaven for ’ (Browning)

5. Step changes in benchmarking… Internal best practices by function
BS1036 Quality Management in the Public Sector 7: Quality Tools and Techniques - Benchmarking
Step changes in benchmarking…
Internal best practices by function
Competitors’ best practices
Industry best practices (including non-competitors)
Functional best practice (e.g. any company in Europe)
Functional best practice - world class

6. Different types of benchmarking…
BS1036 Quality Management in the Public Sector 7: Quality Tools and Techniques - Benchmarking
Different types of benchmarking…
Competitive (i.e. competitor) analysis
Best practice (which goes beyond competitive analysis to uncover actual processes that deliver best practice) in 4 categories..
1. Internal (search within the company)
2. Competitive (search in a competitor)
3. Functional (search by function e.g. payroll)
4. Generic (both function and process)

7. A systematic approach Deming Benchmarking Plan Plan Do Collect
BS1036 Quality Management in the Public Sector 7: Quality Tools and Techniques - Benchmarking
A systematic approach
Deming Benchmarking
Plan Plan
Do Collect
Check Analyse
Act Adapt
Also needs… management support, research facilities, networking, codes of conduct, training, internal communication...

8. Rank Xerox benchmarking process.. [1] of [2]
BS1036 Quality Management in the Public Sector 7: Quality Tools and Techniques - Benchmarking
Rank Xerox benchmarking process.. [1] of [2]
1. Identify what is to be benchmarked
2. Identify comparator companies
3. Determine data-collection method and collect data
4. Determine current performance gap
5. Project future performance levels

9. Rank Xerox benchmarking process.. [2] of [2]
BS1036 Quality Management in the Public Sector 7: Quality Tools and Techniques - Benchmarking
Rank Xerox benchmarking process.. [2] of [2]
6. Communicate benchmarking findings and gain acceptance
7. Establish functional goals
8. Deliver action plans
9. Implement specific actions and monitor progress
10. Recalibrate benchmarks

10. Roles and responsibilities Stakeholders
BS1036 Quality Management in the Public Sector 7: Quality Tools and Techniques - Benchmarking
Roles and responsibilities
Stakeholders
The executive champion (Board level)
Process sponsor (more immediate management)
Team leader/facilitator
Benchmarking team itself
Functional/technical experts
Research resource team
Benchmarking partners

11. Which process to benchmark?
BS1036 Quality Management in the Public Sector 7: Quality Tools and Techniques - Benchmarking
Which process to benchmark?
Critical success factors (CSF) have to be identified and then…
Critical Process 1 Critical Process 2 Critical Process 3
_____________________________________________________________________________
Process Performance Rating
CSF
CSF
CSF
Total priority

12. Which process to benchmark?
BS1036 Quality Management in the Public Sector 7: Quality Tools and Techniques - Benchmarking
Which process to benchmark?
For each CSF, use the scale : 1=low impact 3 = medium impact 5=major impact
For each critical process, use the scale
1 = excellent performance 3=average performance 5=poor performance
Multiply out to get an improvement priority score

13. Identify potential benchmarking partners Plan data collection methods
BS1036 Quality Management in the Public Sector 7: Quality Tools and Techniques - Benchmarking
Collect the data
Identify potential benchmarking partners
Plan data collection methods
Conduct questionnaires/interviews
Prepare/conduct a site visit
Write the site visit report

14. Analysing and using the data ‘Normalise’ the data (e.g. percentages)
BS1036 Quality Management in the Public Sector 7: Quality Tools and Techniques - Benchmarking
Analysing and using the data
‘Normalise’ the data (e.g. percentages)
Construct a comparison matrix
Identify the best practices
Isolate the ‘process enablers’ for each best practice

15. Adapting the best practice and enablers
BS1036 Quality Management in the Public Sector 7: Quality Tools and Techniques - Benchmarking
Adapting the best practice and enablers
Get support from upper management
Organised strategy has to have realistic, actionable improvement goals
Communicate findings and plan a commitment to change
Set goals to close the gaps
Developing the implementation plan ( and implementing it)
Maintain leadership!

16. Problems with benchmarking ?
BS1036 Quality Management in the Public Sector 7: Quality Tools and Techniques - Benchmarking
Problems with benchmarking ?
Can we find realistic comparators i.e. ceteris paribus
Are sufficient resources devoted to it ?
Might it encourage a devotion to the measurable, losing more subtle but key things on route ?
Can it stand alone, apart from other quality initiatives ?
Your own experiences are ...