Introduction to Benchmarking

Improving Performance Based on External Assessment

LuAnn Stokke F2 Administration/ Strategy Management

July 27, 2010

Todays Agenda
What is benchmarking? Why do people do it? Why should we do it? How is it done? What do you do with the data or information you get? Whats benchmarking protocol? Is there any ongoing commitment to partners?

Benchmarking?

Benchmarking Defined
Benchmarking is the process of comparing ones business processes and performance metrics to industry bests and/or best practices from other industries. Dimensions typically measured are quality, time, and cost. Improvements from learning mean doing things better, faster, and cheaper.
en.wikipedia.org/wiki/Benchmarking

All Benchmarking is not Created Equal

Forms:
resultscomparative performance within and between organizations (efficiency/effectiveness) processanalysis of activities and tasks that turn resources inputs into outputs and outcomes best-practice standardstake the form of goals and benchmarks to which orgs aspire, as part of planning and continuous improvement

All Benchmarking is not Created Equal

Methods:
Internalcompares across branches or units (e.g., one GCA customer team benchmarks budget set-up time to another team) Externalcompares one aspect across similar or different businesses, products or services (e.g., F2s personnel; IT systems) Genericexternal across organizations with very different products or services (e.g., client mgmt across diverse privatesector companies)

When Should you Consider Benchmarking?

You need to know more about how your cost and quality levels compare to best practice

Budget resources are under pressure and

necessary investments for growth in demand have

to be financed

Program revenue or client demand is under pressure

Client service standards are being created, or

require improvement

Group Exercise: Where are your obvious opportunities?

You either want to maintain your product/service/customer leadership position, or you want to meet or beat the front-runner.

Where Does Benchmarking Fit in F2s Strategy?

Vision
Efficient Processes Delighted Customers

Strategic Plans
Leaders
Trustworthy Trusting of Others Approachable, Inspiring

Staff
Trustworthy Trusting of Others Collaborative, Committed

Quality Improvement System

Trained Staff Customer Focus Teamwork Recognition Data Analysis Empowered Staff Problem Solving Quality Processes Measurement Systems

Where Does Benchmarking Fit in ORs Strategy?

Add Value to the Overall Research Experience Provide exceptional research administrative services while effectively managing risks and opportunities Develop strategies and a plan for open and clear communication Improve access to key information Improve researcher productivity and satisfaction by reducing administrative burden Decrease barriers to collaboration Achieve Operational Excellence Streamline business processes Develop effective relationships with process partners and the campus research community Identify and adapt best practices Promote a culture of continuous process improvement Embrace a culture of transparency and accountability Strategically analyze risks and benefits

Where Does Benchmarking Fit in ORs Strategy? (OR)

Attract & Retain Top, Diverse Staff Cultivate an environment that stimulates, challenges and grows staff knowledge, skills and competencies through continuous learning Encourage staff engagement and participation at all levels of process improvement and achievement of OR goals Develop OR leaders and career paths for promoting upward mobility within the organization. Add Value to the UW Work within the campus community and at a national and international level to impact UW-wide strategic initiatives, strategic research directions and policies Improve recruitment and retention of top faculty Improve integration of research and education Improve translation of research into the public benefit Promote and enhance cross-cutting research initiatives Increase and diversify external research funding

AuditAnalyzeIDImproveAsse ss

HeyThat Looks Sort of Familiar!

Benchmarking at a Process or Project Level

Copying? Industrial Tourism?

old-school benchmarking, UK style

What is it Like Now?

LEAN, CPI, BSC Remote Research/Analysis

Contact Us

Process Mapping; partnering

BSC

What is our Performance Level? How do we do it?

Operational performancewhat matters (to strategy, customers, bottom-line, stakeholders) Dashboards and scorecards LEAN current-process maps Process maps from PI projects F2s productivity data (widgets and FTE) Customer Feedback

What are Others Performance Levels? (secondary data)

Reports (e.g., Hackett, UBER) Consortia and Existing Organizations (e.g., NACUBO, AAU, IPEDS, APPA) Media (e.g., Princeton Review, U. S. News & World Report) UW P&BInstitutional Research & Data Mgmt. Peer contacts Marketing materials/annual reports Customized web searching

All to determine, what is our performance gap?

How Did They Get There? (primary data)

Ask them! E-mail, conference call, videoconference, or live visit (if theyre local)
Determine if their performance is best in class Investigate similarities and differences Identify constraints

What was their quality journey? (where did

they start?) What resources did they apply to achieve their performance level?

TABLE EXERCISE
Your unit is responsible for processing spending reports for gifted funds and submitting them to donors, correctly and within 10 days of the end of the quarter. Your current on-time performance is 78%, and your error-rate averages 91% correct (9% of your reports must be recalculated and redistributed). You learn from one of your major (and disgruntled) donors that Seattle Pacific University completes similar donor reports, and according to her, they are always on time and always correct.

Who would you seek out at SPU to talk to? How would you contact them, and what would you say? What form would your interview take? (e.g., phone, email, live) What would your questions be? (4-5 interview questions)

Benchmarking Protocol (business etiquette)

Allow plenty of time for partners to set up visits/call arrangements Do your homeworkknow something about them (cant emphasize this enough!) Zone in on key questionsdont extend the scheduled time Listen; seek first to understand Avoid head-to-head comparisons while in the meeting (unless they ask) Youre there to inquire; not advocate Maintain confidences; they may share sensitive information Bring a leave-behind (and business cards) Take copious notes; share them after the meeting, asking for correction or clarification Wear comfortable shoes* Send prompt thank-yous Figure out reciprocation beforehand

Creative Adaptation

Compare primary data (immediate) and secondary (collected) data Validate whats applicable to your performance objective (may need to chunk out) Assess internally: is not-invented-here syndrome an issue? Identify what enablers are necessary Communication hardware and software email, memos, meetings vs. cultural norms Select high-leverage improvements and/or adjusted targets

Todays Hybrid Method (spendy, but effective)

Companies and publicsector organizations are relying on consultants/vendors to:

Identify peer groups Oversee peer-group visits or data-collection efforts (using webenabled, customer-fed systems) Analyze performance data Identify and promulgate best practices Report out to senior management Provide recommendations for improvement Host consortia of peers and industry leaders (Examples: Bain, Hackett, UBER) Orpaying membership fees to professional organizations for detailed benchmark data.

Breakthrough Performance and Beyond

1.Determine

ROI/feasibility of alternativesselect short- and long-term 2.Coordinate and secure approvals 3.Sufficient Cooperation? Plan communication & change-management, as needed (denialresistance explorationacceptance) 4.Involve the work group to maximum extent 5.Implement training, as needed 6.Remeasure/rebaseline (as needed) 7.Communicate linkage to business/strategic plan (case for

Conclusion: Impacting Value to the Customer

MARKET SPACE

MARKET NEEDS

ORGANIZATIONAL CAPABILITIES

MARKET NEEDS

MARKET SPACE

ORG CAPABILITIES

BENCHMARKING AND CONTINUOUS IMPROVEMENT