1. Benchmarking Analysis/Design Diagnostic cmpmNR888VbfbpDec92D February 1993

2. cmpmNR888VbfbpDec92D- 2 - Benchmarking Performance Criteria 0%-No evidence 25%-Minimal evidence Just investigating applicability Familiar with process and concept 50%-Value recognized with no coherent effort -Internal benchmarking only -Pockets of benchmarking -Single site use 75%-Actively involved in benchmarking and applying it to obtain improvement of some sort -Starting external benchmarking -Evidence of champion -KPIs understood 100%-Strong level of activity and demonstrated leadership -Recent implementation examples -Integrated into business -KPIs from competitors fully used

3. cmpmNR888VbfbpDec92D- 3 - Benchmarking Diagnostics 1.Understanding of benchmarking practices: Benchmarking has been performed recently Benchmarking data has been used productively People are trained in benchmarking Benchmarking performed routinely Previous benchmarking focused on results Previous benchmarking focused on practices Benchmarking is an integral part of the business People are evaluated on benchmarking success: -Functionally responsible All levels of management are fully involved in benchmarking process Level of ownership for resulting benchmarking findings Visible evidence of literature on benchmarking 2.Understanding of internal/external work practices: Understand how competitors perform processes Understand how old work practices are Understand how other divisions/units perform work practices Understand which processes are cost driven Cost driven processes are modeled Internal leveraging of best practices across divisions/units External leverages of best practices with other companies Understand own processes Understand performance level of processes

4. cmpmNR888VbfbpDec92D- 4 - Benchmarking Diagnostics 3.External knowledge (industry; other industry): Knowledge of competitors Knowledge of other companies who perform similar functions Know best of best-in-class companies Do they belong to applicable national association Number of new hires from competitors 4.Metrics: Does work practices have KPIs defined Are KPIs visible and posted Do the KPIs translate across the industry Do the KPIs translate across divisions/units Understanding of competitors’ KPIs Is competitive data collected and tracked Knowledge of best-in-class KPI results Relative performance across divisions/units understood

5. cmpmNR888VbfbpDec92D- 5 - Benchmarking Diagnostics 5.Internal culture: Continual improvement system/process in place Improvement projects well managed Number of improvement projects limited to a vital few Projects historically successful Success of project measured and followed-up Goals formulated based on benchmarking findings Projects do not have a history of short-falls Strategies exist to deal with red issues There is clear accountability for improvement projects 6.Benchmarking climate: Internal conflict is minimal Organization is open to looking at outside practices Key contacts with outside organizations exist Perception that a significant improvement can be achieved Internal members have significant applicable external experience