1. Workshop October 2015

2. Stage 1 Terms of Reference (plan the project)

3. 1.Determine area of focus for benchmarking project 2.Develop project brief 3.Form project team 4.Train project team 5.Understand benchmarking code of conduct 6.Prepare Terms of Reference 7.Develop documentation system 8.Review project progress and TOR 9.Obtain approval to start the next stage of TRADE

4. Step 1 – Determine area of focus for benchmarking project Selected because:  Level of strategic importance  Pressure to improve performance in this area by customers or other stakeholders  Performance can be significantly improved  Improvements will result in significant benefits

5. Ask yourself “is this benchmarking study worthwhile doing?”  Will your benchmarking project answer questions and provide solutions that are critical to the success of your organization? YES/NO  Is your organisation willing to change your current processes and systems if the findings from the study point towards changing direction? YES/NO  If the responses to these questions are ‘NO’, your benchmarking project will likely have a low Return on Investment and you should reconsider pursuing it Source, adapted from:

6. Step 2 – Develop Project Brief Consists of:  Name of project sponsor  Size of project team (No. of people)  Members of the project team (Names)  Aim of the project  Scope of the project (clear description of the area of focus for the project and what is included and excluded from the project)

7. Step 3 – Form Project Team Project Team members:  Team Leader  Benchmarking expert  Administrator  Team member (s) The Project Team reports to the Project Sponsor

8. Project Sponsor

9. Project Team RoleDescriptionIdeal Skills Team Leader  Liaison point with the project sponsor and project team  Leads the team and ensures that the TOR is created and executed  Manages project risks, resources and issues  Monitors and reports progress of the project  Leadership skills  Project management skills  Communication skills  Benchmarking experience Benchmarking Facilitator  Provides specialist advice and training on how to implement TRADE  Ensures all TRADE steps and stages are followed  Updates TRADE Spreadsheet  Assists in finding benchmarking partners through developing strong networks  Trained in TRADE  Benchmarking expertise  Analytical skills  Networking skills

10. Project Team

11. Step 4 - Train project team Minimum training requirements for all team members:  Introduction to benchmarking  Overview of the benchmarking methodology  Roles of project team members  Benchmarking Code of Conduct

12. Step 5 - Understand benchmarking code of conduct  Codes - “Guide Benchmarking encounters and advance the professionalism and effectiveness of Benchmarking”.  APQC and EFQM Codes of Conduct  Benchmarking Agreement

13. "Principle of Confidentiality Treat benchmarking findings as confidential to the individuals and organisations involved. Such information must not be communicated to third parties without the prior consent of the benchmarking partner who shared the information. When seeking prior consent, make sure that you specify clearly what information is to be shared, and with whom. An organisation's participation in a study is confidential and should not be communicated externally without their prior permission". Benchmarking Code of Conduct

14. "To infinity... and beyond!" " That wasn't flying! That was... falling with style!”

15. Benchmarking is “learning from others” with style! Benchmarking Code of Conduct provides the style!

16. Step 6 - Prepare Terms of Reference  Project name  Project sponsor  Team members  Project aim  Scope  Background  Project objectives  Expected benefits  Expected costs  Project stakeholders  Task management  Training requirements  Risk management  Communication plan  Change management  Project audits  Benchmarking Code of Conduct  TRADE timeline  Actual benefits  Actual costs Terms of Reference should consider:

17. What we don’t want to happen in a benchmarking project is that projects are commissioned with unrealistic expectations

18. First understand what is “really” required

19. Project aim Relates to improving a: process activity/task business improvement tool equipment strategy behaviour

20. Scope  What is included and excluded?  What is the end point of the project?  Are there time and resource constraints?

21. Project aim/scope can be broad (wide) Use a broad aim /scope when.. Understanding of area is low & difficult to prioritise opportunities for improvement Output Major recommendations for change across multiple areas (Project team often not involved in implementing changes) Recommended project approach: Exploratory/shallow – overview comparison data, searching for ideas/ best practices across many areas

22. Project aim/scope can be narrow Output New practices implemented and improvements monitored (Project team involved in implementing changes) Recommended project approach: Detailed/deep – focussed comparison data, searching for ideas/ best practices in a specific area Use a narrow aim/scope when.. Understanding of area is high & you know what needs to be improved

23. Background  Why is the project needed?  Why selected?  Who identified the need for the project?

24. Project objectives Specific, significant, stretching Measurable, meaningful, motivational Agreed upon, attainable, achievable, acceptable, action-oriented Realistic, relevant, reasonable, rewarding, results-oriented Time-based, timely, tangible, trackable

25. Develop Milestone and Outcome Objectives Related to each stage of TRADE Objective 1 – To decide and obtain sign off on the Terms of Reference by 15 November 2015 Objective 2 – To review our current processes and systems by 30 December 2015 Objective 3 – To identify best practices in X by 25 March 2016 Objective 4 – To implement best practices by 1 July 2016 Objective 5 – To evaluate the outcomes from the project by 1 October 2016 with an expected increase in performance from X% to X%

26. Expected benefits Financial % decrease in costs Increase in revenue Non-Financial Time saved % increase in productivity Qualitative (e.g. improved communication and knowledge).

27. Expected costs Description of Resources  Labour -  Expenses –  Capital – Cost of Resources  Labour ($) -  Expenses ($)–  Capital ($)–  Total - Is the likely resource input worthwhile in return for the expected benefits?

28. Stakeholders? Who will be impacted by the project? How will they be impacted?

29. Tell me I may forget Show me I may remember Involve me and I will understand

30. “Buy-in” isn’t the same as “ownership” “Buy-in” indicates that you have an idea that you didn’t involve others in but you want them to embrace it anyway. “Ownership” is what people feel around an idea, improvement or decision because they’ve been part of the process of coming up with it on some level, at some point.

31. Task management How will tasks be managed? (Project tasks/work can be managed through using the TRADE Task Worksheets in the TRADE SPREADSHEET)  Scope out project and likely tasks as soon as possible. E.g. number of meetings, intention of surveys/site visit etc.

32. Training required?  Benchmarking  TRADE methodology  Analytical skills  Research skills  Project management  Communication

33. Risk Management Record any risks that may stop you completing a successful project on time. What are the key risks that could delay the project or reduce its impact? Likelihood (L) High=3 Med=2 Low=1 Consequence (C) High=3 Med=2 Low=1 Risk (LxC) How will the risk be managed or mitigated? (For any risk that scores 3 or above it is important to manage or mitigate the risk) 1) 2) 3) 4) 5) 6) 7)

34. Communication plan How is progress of the project communicated and who to? Change management What is the process for agreeing changes to the TOR?

35. Don’t get in “transmit only” mode when dealing with stakeholders – invite them to participate on some level. Opportunities for stakeholder involvement: Input into the Terms of Reference Review of current process (brainstorming, process walk-throughs, fishbone diagrams) Visits to benchmarking partners Action planning Progress presentations

36. Project audits  Will an audit be undertaken, if so when? Benchmarking Code of Conduct Has it been read and understood? Refer to benchmarking agreement form

37. TRADE timeline  How long will each TRADE Stage take?  Projects usually take from 3-12 months

38. Actual benefits Financial % decrease in costs Increase in revenue Non-Financial Time saved % increase in productivity Qualitative (e.g. improved communication and knowledge).

39. Actual costs Description of Resources  Labour -  Expenses -  Capital - Cost of Resources  Labour ($) -  Expenses ($) -  Capital ($) - Total -

40. Step 7 - Develop documentation system The following information should be filed and stored:  Terms of Reference (all versions)  Minutes of meetings  Benchmarking Code of Conduct  Signed Benchmarking Agreements  Literature research information  Company reports and documentation relevant to the project  Partner related documentation  Site visit reports  Presentation slides  Benchmarking report TRADE Spreadsheet is a ready-made documentation system

41. Record your ideas and identified best practices as you proceed through the project Improvement Ideas and Best Practice Form

42. Benchmarking provides a winning formula Your knowledge and experience + best practices = NEXT PRACTICES!!!

43. Step 8 - Review project progress and TOR Examples of questions:  Was the benchmarking training or mentoring support satisfactory in order to be able to undertake this stage?  Does everyone understand their role?  Does everyone have enough time to spend on the project?  Was the Terms of Reference completed to your satisfaction?  Are there any issues that we should raise with the Project Sponsor that he/she could help to resolve?

44. Step 9 – Obtain approval to start the next stage of TRADE  Approval by Project Sponsor Do the expected benefits provide a good return on investment?