Continuous Improvement & Benchmarking

Continuous Improvement and Benchmarking

Analysis - Workbook

This Analysis Workbook is to accompany the CIB Learning Toolkit CD. The Analysis Workbook, contains the same templates as the CD and is designed for use by the CIB team members to assist in completing their tasks. You can access any page quickly by clicking on any line in the Contents (Control + click if your browser has started up Microsoft Word and opened the document in a new window). To return to the Contents page, press Control + Home.

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Contents
ANALYZE DEFINE THE SERVICE UNDERSTAND THE SERVICE MEASURE THE SERVICE SURVEY CUSTOMERS INVESTIGATE PROBLEMS BENCHMARK INNOVATE SECURE FUNDING APPROVE CIB IMPLEMENTATION IMPLEMENT BUILD THE IMPLEMENTATION TEAM SUSTAIN 3 4 8 18 21 28 30 49 59 61 64 65 74

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Analyze

The purpose of the Analyze phase of a CIB project is to investigate the current performance of the service and find out the customers' and community's views on the service delivery. The Analysis phase involves six tasks: 1. Define the service 2. Understand the service 3. Measure the service 4. Survey the customer 5. Consult the community (optional) 6. Investigate problems

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Define the service
Analyze >

Purpose
To ensure the team focuses on improving the service processes that have the greatest impact, and to ensure the project scope can be achieved within three months.

How to proceed
1. Research and document what the service entails using the Service definition

worksheet (use template below).
2. Define the service processes and rate their general performance and importance

using the Process selection worksheet (use template below).
3. Rank and then select the service processes to be the subject of this CIB project. 4. Define the chosen service processes using the Process definition worksheet (use

template below).
5. Verify the chosen scope can be completed within three months, by reviewing the CIB

project plan.
6. Seek Steering committee endorsement of the Updated CIB project plan and the

service processes selected for analysis and improvement.

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Service Definition for: ……………………………………
Service description
General description of the service.

Service goals
What is the service meant to achieve in the long term?

Customers
Who are the customers served?

Service outputs
What is delivered by the service?

Service distribution
Describe geographical dispersion of the service, customer groups

Delivery means
Are any parts of the service outsourced?

Service standards
Are there external standards controlling service delivery?

Legislation
What laws affect the operation of the service?

Stakeholders
What other people or groups have a valid interest in the operation of the service?

Opportunities for improvement
Are there known opportunities for improvement?

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Process Selection Worksheet for: ………………………………..
Problems 9 = very serious Processes Outputs 6 = significant 3 = small 1 = very minor Resource usage 3 = large 2 = moderate 1 = small Impact on external customer 3 = high impact 2 = medium impact 1 = low impact Total score = sum of ratings Rating

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Process Definition worksheet for: ………………………………………………
Suppliers
Who supply what we use

Inputs
What we use

Process
What we do

Outputs
What we deliver

Customers
Who receive our outputs

Outcomes
What we achieve

_________________ _________________ _________________

_________________ _________________ _________________

_________________ _________________ _________________

_________________ _________________ _________________

_________________ _________________ _________________

2. Note any specific issues for this process
Service standards Problems delivering outputs Problems achieving desired outcomes

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Understand the service
Analyze >

Purpose
To build the team's knowledge of how the service operates, what the transaction flows are, what operational and financial risks there may be and what the opportunities for improvement are.

How to proceed
1. Brief the service staff and advise them that the project team will interview some staff. 2. Plan the work ahead, how it will be conducted, who will be interviewed, how your

records will be kept of the findings, and what photographs should be taken. 3. Arrange the interview schedule.
4. Interview service staff, walk through the process, photograph the process, inspect

documents and forms, and role play the customer; use the service questions (see listed below). 5. Process map the service processes using the Process mapping worksheet (see below). 6. Verify you have covered off all of the items using the Check list (see below).
7. Document current problems and the opportunities for improvement.

8. Thank the service staff for their participation and advise them on the CIB project’s next tasks.

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Questions for investigating service processes
How to use this list
1. Read this list before you begin your investigations. 2. Decide which questions in this list need to be answered, and who you should ask.
Organization

 What Acts, Regulations and official policies and procedures govern this service? (Ask to view copies.)  What is the division of responsibilities between your organization and others with responsibilities in this area (what are National / Provincial / Municipal / District / local level government roles)? (Prepare by reviewing any official documents on division of responsibilities between the various levels of government.)  Are any changes to the organization structure planned or likely soon? (This question is important because there is no point in doing a detailed analysis and improvement project on something that is soon to be changed through another reform.)  Are there any aid projects affecting this service or process?
Service Objectives

 What are we trying to achieve in this service or process? (Use this question only if you do not already know – it should have been established in the service definition – check the Outcomes.)  What might happen if this service was closed down? (The response will tell you how important the person thinks the service is – how critical it is for the achievement of important objectives.)  Are you achieving what you planned for the service or process ? If not, what has caused the gap? What actions are planned to reduce the gap?
Planning and Budgeting

 Is there a good planning process that forecasts users’ demand for the service and budgets the resources needed?  Who pays for the service? (What is the division of funding between various levels of government, are there any fee-for-service payments by the users of the service, is there funding by aid donors etc.?)  Are the budget amounts (including any from donors) adequate for meeting service demand? If not, how much is the shortfall?

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 Are the budgeted amounts actually made available during the year? If not, why not? If all the budgeted amounts were made available, would the service delivery be satisfactory?
Financial Controls & Risk Management

 Are there any risks of fraud or corruption in this service or process?  Is there an auditing procedure applied to this service or process? Who does it? How often?  What is the likelihood that any fraud or corruption would be detected? Are known breaches always pursued? Are penalties imposed and enforced?  Are there any other financial risks associated with this service or process, for example: • bad debts, • errors in financial transactions, • over-payment of suppliers, • loss of revenue due to poor record-keeping or • loss of revenue due to lack of follow-up (for example – failure to enforce payment of taxes, levies or fines, or non-enforcement of contract penalty clauses). If so, what is done about these risks?  Are any assets at risk of damage, theft or vandalism? If so, what is planned to prevent it?  Are major assets maintained adequately and available for use as planned?  Are employees provided with necessary safety equipment, clothing or footwear  Are employees trained on safety awareness and avoiding risk?  Are all accidents and incidents recorded and investigated, and corrective action taken?
Service Monitoring and Assessment

 Is there an evaluation process to monitor the delivery of services in the field? Who does it? Are written reports available? (Ask to look at sample reports.)  What action is taken in response to service monitoring and assessment? Are there any problems with this?
Opportunities for use of technology

 Are there any opportunities to automate the process in the short term for little cost, for example by increasing the use of computers that are already available?
Opportunities to shift activities

 Can you move any processes or activities to another person or organization? For example, other levels of government, community associations, NGOs, private service providers, or the service users themselves, by: • Engaging community participation. • Outsourcing to a private service provider. • Getting the service user to participate more, e.g. by completing forms or providing data instead of you filling in the information.

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Process Mapping Worksheet
Stakeholder:

Stakeholder:

Stakeholder:

Stakeholder:

You can duplicate these symbols by clicking and then hit Ctrl “D” – then click and drag You can also use a process mapping tool such as Microsoft Visio In word – use the “AutoShapes” “Flowchart” in the Drawing toolbar

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Understand the service – Check list
This check list is to be completed by the CIB Project team leader, after the initial work has been completed within Understand the service task. The purpose of the check list, is to ensure that all relevant and important aspects of a process have been investigated and analyzed by the team. For each of the following aspects of a process, please indicate whether or not the aspect is relevant or not, and if it is relevant, whether or not the team has investigated this aspect. If not, then further investigative work will be required.

Project title:…………………………………………
Service or process aspect to be reviewed Relevant Yes/ No 1. Forecast the demand for this service 2. Assess our capacity to meet future demand and plan our resources accordingly 3. Submit budget requests that clearly set out the forward demand and the costs to meet this demand 4. Recommend alternative revenue sources to fund the forecast resources 5. The Objective (outcome) of this service is clearly defined and performance measures report whether or not the service objective is being achieved 6. Assessment of the service Objective or Outcome is made annually and any failing in performance is analyzed 7. Remedial action is planned by the service manager and changes are incorporated into the new years business plan 8. The annual budget request includes recurrent costs for the service plus a budget allocation for service improvements 9. Service risks are identified and quantified and serious risks have a defined mitigation strategy 10. Fraud and corruption is tested periodically and any cases detected are dealt with promptly Been reviewed Yes/ No

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Continuous Improvement & Benchmarking Service or process aspect to be reviewed Relevant Yes/ No 11. Fraud and corruption is reported to the most senior management 12. Punitive action is always taken for those staff convicted of fraud or corruption 13. Pre-printed forms are used as much as possible to control how the process is performed, and guide the process operator 14. Paper based records have been converted into computer records to preserve them and to guarantee their accuracy and survival 15. Consideration has been given to outsourcing this service to a private business operator 16. The customer is required to provide transaction data in a “request form” or “payment details” to minimize the data collection requirements of the City 17. Doubtful debts are quickly identified and a debt pursuit process is commenced 18. All records of debt (amounts owing) to the city are backed up and totally secure and protected from fire, theft or any other potential damage 19. Financial calculations such as interest, damages, charges, balance forward etc. are calculated by a secure computer program, and there is no chance of a calculation error being made 20. All valid claims of the City on its suppliers and customers are pursued in accordance with the stated and accepted terms of trade or contracts; all debts are pursued, all guarantees are pursued, and all insurance claims are pursued 21. Procedures are in place to ensure the city buys its services and supplies for the best price, being a combination of quality and cost Been reviewed Yes/ No

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Continuous Improvement & Benchmarking Service or process aspect to be reviewed Relevant Yes/ No 22. All major assets are recorded in the books of the city and we know where each asset is located and who is the custodian 23. Assets have a preventative maintenance program 24. Users of assets are training in the operation of the asset and know the assets limitations 25. Risks associated with the asset, eg, accident risks, public safety risks etc. and known and appropriate insurance is taken out to mitigate any losses by the city 26. Assets are routinely replaced at the end of their service life, and the annual budget has an asset replacement allocation 27. Asset condition is regularly assessed, and is reconciled with the planned or expected service life remaining; rehabilitation maintenance is schedules when applicable 28. Adequate spare parts inventory is held to ensure the asset is serviced and maintained correctly 29. Asset utilization is monitored; underutilized assets may be disposed of and overused assets may be supplemented with additional assets 30. We employ resources to cover the base load for this service, and peak demand times are serviced with casual or hired employees and equipment 31. We redeploy permanent staff to other duties when their capacity is not required in low demand periods 32. We monitor staff and equipment efficiency to ensure the right balance of resources to demand is there 33. The service is published in a service listing or similar, and the community is made aware of the
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Been reviewed Yes/ No

Continuous Improvement & Benchmarking Service or process aspect to be reviewed Relevant Yes/ No service and how it operates 34. At the service delivery point, the way in which the service is delivered and the role of the customer in the delivery process is clearly displayed for all customers to read and be aware of 35. Employees are trained on occupational health and safety issues 36. Employees are issued with safety clothing and safety equipment 37. All accidents and incidents are investigated and corrective action is taken 38. Safety furniture is deployed at sites to safeguard the public against accidents and risks 39. The manager communicates the objectives/ purpose of the service to the employees and all employees understand why the service exists 40. Employees have performance targets to achieve, either at the group level or team level 41. Employees can and do report their concerns or complaints back to their manager and are confident their opinions are taken seriously 42. Employees that cannot perform their tasks well are retrained or counseled to overcome their weakness 43. For each approved position within this service there is a job description and a skill requirement clearly defined 44. Each employee is assessed on an annual basis to assess their skills and performance 45. A skills training schedule is made for each employee annually and their training is monitored Been reviewed Yes/ No

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Continuous Improvement & Benchmarking Service or process aspect to be reviewed Relevant Yes/ No by their manager 46. Combustion engine emissions are measured for unacceptable levels of carbon monoxide and other gasses and when exceeding statutory limits are withdrawn from service 47. Air conditioners and refrigeration equipment that use CFC gas are being withdrawn from service 48. Dependency upon non-renewable energy (oil, coal, natural gas etc) is being targeted for replacement 49. Management reports are prepared monthly that report the key performance results of the service Been reviewed Yes/ No

Date checked:………………… Check list completed by:…………………………………………………………………..

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Measure the service
Analyze >

Purpose
To gather factual information to measure the performance of the service or process.

How to Proceed
1. Select the most important inputs, outputs and outcomes to measure, and their measurement aspects. 2. Name the performance measure title. 3. Define the measure using the Performance Measure Definition worksheet (use the template below). 4. Source the data. 5. Collect the data. 6. Report the measure and your findings.

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Continuous Improvement & Benchmarking On the Performance Measure Definition Worksheet the columns refer to the following: 1. Performance measure name – this is a very short title that describes the measure; e.g. “The percentage of applications received, that are complete and correct” – its better to work from the positive angle rather than the negative angle – aim high for quality and short periods for timeliness. For customer satisfaction an index can be used with a scale of 1-5. 2. Data required – this names the individual data items required to report the measure. Generally there will be two data items such as total cost and number of outputs delivered; e.g. “time and date of the permit being received, time and date of the application being issued, number of public holidays during the period” 3. Source of data – is the transaction, document or system or process where the data is being sourced from; e.g. date stamped onto the application and date written on the permit, HACC client register, Job sheets, or Asset register; 4. Calculations required – is the arithmetic needed to be applied to the data required to calculate the performance value; it may be a percentage, an average, a median or elapsed time; Excel can assist with these calculations; e.g. A/B*100 5. Responsibility for the data collection – this is the name of the unit or the person responsible for collecting the data, processing the data and providing the performance value for the period. It could be a business unit, a supplier, a person or even an external contracted person; Other information that can be included with this format at your option is: 6. The frequency of reporting the measure; daily, weekly, monthly, quarterly 7. The medium it will be reported on; poster, web page, management report 8. The audience it will be reported to; employees, customers, suppliers, senior management 9. The aggregation path such as all pools added together, or will the measure be reported for each pool; the path can be geographic, or demographic 10. The benchmark value or target that other councils or the private sector is actually achieving or you set for your own performance. .

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Performance Measure Definition Worksheet

Data required - itemise Performance Measure Name
(what individual pieces of data are needed to build the performance measurement)

Source of Data
(exactly where you can find the individual pieces of data)

Calculations required
(show how the data are used to calculate the final performance measurement)

Person responsible / target date
(who on the team will get the performance data, & when)

Data collected

Individual data 1: 2:

Calculated data

1: 2:

1: 2:

1: 2:

1: 2:

1: 2:

1: 2:

1: 2:

1: 2:

1: 2:

1: 2:

1: 2:

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Survey customers
Analyze >

Purpose
To obtain a clear understanding of the customers’ opinion about the service’s performance.

How to Proceed
1. Design the customer survey using the “Customer Survey Design worksheet” (use template below) 2. Prepare the questionnaire (use the template below). 3. Test the questionnaire with staff and sample customers. 4. Adjust the questionnaire 5. Deploy the survey. 6. Collect and process the survey results. 7. Graph the results. 8. Analyze the graphs and draw your conclusions from the results.

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Customer Survey Design Worksheet
Service:

1. Purpose of the survey What are we trying to find out by using this survey 2. Quantity of customers, points of contact and staff to illustrate the size of this service Number of customers served p.a., number of service points, service frequency, number of transactions p.a., number of staff.

3. Corporate goals for customer service (relating to this service) Specific stated Corporate goals related to this service and how satisfied the customer should be

4. Service outputs (what the
customers receive)

List each of the specific outputs – eg. Invoice, bill, statement, answer, repair, installation, connection, etc

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5. Service standards
current agreed standards or targets for delivery of the service - quality, timeliness, completeness, accuracy.

6. Customers
any specific groups with identifiable needs, expectations or opinions which differ from other groups – age demographics, urban or rural, gender, level of education etc

7. Key Performance Indicators
relating to this service and which may impact customer satisfaction

8. Points of Contact
points at which the customer experiences the service at home, at council hall, at reception, before service delivery, post service delivery

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9. Key Customer Requirements Evaluate what is most important for the customer - at each point of contact. Consider: Reliability Consistency Empathy Responsiveness Assurance Availability Timeliness Completeness Accuracy

10. Survey approach to be used
Telephone interview, face to face interview, mail out questionnaire, who will carry out the survey and who will process the results

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11. Sample size
How many customers will be interviewed or asked to respond, and if more than one group – the number for each specific customer grouping – will our survey resources cover this number in the sample

12. Length of the survey
How long will the customer be questioned – how many questions can be reasonably asked of the customerwhat is the minimum number of questions required to adequately inform us

13. What scaling will be used
1-5 Likert scale Understanding of each score= 1,2,3,4,5 Do we need “importance” scores Do we use “yes” “no”

14. Incentives, rewards to the customer for their participation
Gift, promise

15. Introduction to the customer
How do we introduce the survey and justify its deployment

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Customer survey template Customer survey to ascertain the level of satisfaction with the xxxxxxxxxxx service.
For each of the following aspects of Council’s xxxxxxxxxxxx service, please firstly rate the importance of that aspect, then rate the degree to which we met your expectation Importance
Ver y Lo w Lo w Neit her High nor Low Hig h Ver y Hig h

Degree we Met your expectation
Ver y Lo w Lo w Neit her Hig h nor Low Hig h Ver y Hig h

Not applicabl e / Don’t know

At the time when the customer xxxxxxxxxxxxxx The statement of expectation is written here The statement of expectation is written here The statement of expectation is written here At the time when the customer xxxxxxxxxxxxx The statement of expectation is written here The statement of expectation is written here The statement of expectation is written here Overall satisfaction with Council’s xxxxxxxxxxxx service.
NA NA

1 1 1

2 2 2

3 3 3

4 4 4

5 5 5

1 1 1

2 2 2

3 3 3

4 4 4

5 5 5

NA

NA

1 1 1 1

2 2 2 2

3 3 3 3

4 4 4 4

5 5 5 5

1 1 1 1

2 2 2 2

3 3 3 3

4 4 4 4

5 5 5 5

NA

NA

NA

If you rated our performance as Low or Very Low for any aspect, please tell us why:

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(Optional) Name: -------------------------------------------Contact phone: ----------------------------------

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Investigate problems
Analyze >

Purpose
To build the team's knowledge of underlying or 'root' causes of service problems and identify opportunities for improvement.

How to proceed
1. Plan and schedule the problem-investigation sessions with service staff. 2. Choose the root cause analysis tool - Fishbone or Why-Why - best suited to your

team and the service problem being investigated. 3. Conduct the analysis.
4. Record the analysis on the Fishbone diagram or Why-Why diagram form,

depending on which analysis you used (use the templates below). 5. Verify the analysis by having a review session later with service staff and by checking on key data to confirm which root causes are most important. 6. Document your opportunities for improvement.
7. Thank the service staff for their participation and advise them on the project's next

tasks.

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Team : Date:

W hy?

W hy?

W hy?

W hy?

W hy?

Problem Statem ent

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Benchmark

The purpose of the Benchmark phase is to provide the CI team with insight and an understanding of how other organizations, not just municipalities, deliver their services of a similar nature, and how they may have improved their services over recent years.

Why Benchmark ?
This insight and understanding is important to the team as it progresses towards developing its recommendations on how to improve your services. It is very difficult to “come up with” innovative solutions to service issues, and many have tried a range of solutions, so it is faster and more efficient to take account of what other people have done, and to consider their experiences in your local context and from that, develop your own recommendations. Benchmarking therefore, is the sharing and comparing of service delivery processes, service standards, improvement solutions and the barriers that have been encountered and how they have been overcome. The Benchmarking phase involves five tasks: 1. Identify what to Benchmark 2. Research best practice providers 3. Develop the Benchmarking approach 4. Negotiate with Benchmark partners 5. Compare with partners

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Identify what to benchmark
Benchmark>

Purpose
To identify what aspects or topics of your service you wish to Benchmark.

How to proceed
1. Review service performance, processes, issues, problems and root causes, and whether or not the desired outcome is being achieved. 2. List all the issues you wish to focus Benchmarking upon using the Topic Selection for Benchmarking worksheet (use template below). 3. Score then rank the issues list from most important to least important using the above worksheet. 4. Select the most important topics you want to Benchmark. 5. Define the Benchmarking Objectives for the selected topics (use the template below) .

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Topic Selection for Benchmarking Worksheet
Service: Page:
Can be clearly defined and articulated 5-1 Is significant and affects the majority of customers or our costs 5-1 Not highly confidential or not of a commercially sensitive nature 5-1 1 2 3 4 5 6 7 8 9 10 Small scope and can be dealt with inside a few weeks 5-1. Total score

Topic: process / poor performance / problem

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Benchmarking Objectives Worksheet
Service: Page:

Selected Topic: process / poor performance / problem
1 2 3 4 5 6 7 8 9 10

Benchmarking Objective

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Research best practice providers
Benchmark>

Purpose
To discover who is delivering a similar service that you believe performs better than the service you are currently delivering.

How to proceed
1. Discuss the topics selected for Benchmarking. 2. Brainstorm/ research potential Best Practice providers in your own city,

state, country, and the World related to these topics.
3. Identify a shortlist and investigate more closely how they deliver their

service.
4. Identify those potential Best Practice providers you wish to approach for

negotiation using the Benchmarking partner assessment scoresheet (see template below).

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Benchmarking Partner Assessment Scoresheet
Potential Benchmarking Partner
Established relationship with government 5-1 Close by location Openness and no conflict of interest 5-1 Comparabl e size Well known for its best practices 5-1 Aggregate score

5-1

5-1

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Develop the Benchmarking approach
Benchmark>

Purpose
To decide the specific Benchmarking approach to be taken by considering the Benchmarking topic and the potential Benchmarking partners.

How to proceed
1. Score your Benchmarking study needs using the Benchmarking Study
Needs matrix (use template below). 2. Choose the best approach for the Benchmarking by comparing your needs with the Benchmarking model matrix best fit tool (use template below). 3. Develop an initial Benchmarking study plan using the Benchmarking plan worksheet (use template below) 4. Document the agreed approach and confirm your potential Benchmarking partners.

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Different models for Benchmarking

Facilitated spoke model
Partner Partner Partner Partner Lead Partner Facilitator Partner Partner Partner Partner Partner

The facilitator develops a survey and then sends the survey to selected partners; this may be random or by specific selection. The partner completes the survey instrument and sends the results back to the facilitator, who then processes the results and formats conclusions, average performance or highs and lows. The consolidated results are then published in a Benchmarking paper and returned to the original partners and in some cases to the media and professional bodies.

Facilitated network model
Partner Partner Partner

Partner

Facilitator

Partner Partner

Partner Partner

The partners meet together regularly, usually monthly, and compare performance, process features and then decide together what is Best practice. Each partner then
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Continuous Improvement & Benchmarking compares their own service/ or subject to the Best practice and develops a “Gap analysis”. It is up to each partner to then decide upon their own improvement priorities and implementation approach. Normally, the partners will reconvene and compare notes on how successful they have been with their improvements.

Network model
Lead Partner Partner Partner

Partner

Partner Partner Partner

Partner

The Network model is similar to the Facilitated network model, except that there is no facilitator to assist with managing and facilitating the entire program. This model can work if there is a Lead partner that takes on the responsibility of facilitator and wears both hats during the program.

Sole operator model
Partner Partner Partner Partner

Lead Partner Partner

The Sole operator model is where the Lead partner takes the initiative and simply acquires information from other “partners” and there is no feed back to the partners nor do the partners have any communication between each other. This approach is best suited to an industry that is competitive or the Benchmarking needs to be done quickly with out the effort of formally contacting the partners to gain their cooperation and involvement.
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Continuous Improvement & Benchmarking This Sole Operator Approach can use: • • • • • An arranged site meeting An unannounced visit A customer role play Research publicly available information Telephone interview

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Benchmarking study needs matrix Service, process or topic to be Benchmarked
I will seek detailed performance measurement information =5 I will not request any performance indicator information = 1 I will request an in-depth understandin g of the process = 5 I will not require an indepth understandin g of the process =1 I have a complex set of problems to resolve and will need partner assistance = 5 My problems are minimal =1 I must complete the Benchmarking inside 2 weeks =5 I can afford several months to complete the study =1

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Benchmarking Model Matrix – Best Fit Tool
Choose the best fit model by comparing the row of four numbers with each topic rated above in the Benchmarking Study Needs Matrix – there may not be a perfect match, therefore choose the closest fit row.

Benchmarking model

Provides Performance indicators only

Provides In depth understanding of processes

Provides Complex problem solving – policy development

Provides Quick – short duration – around two weeks

Facilitated spoke model – has central facilitator calling for information and then distributes information back to the partners Facilitated network model – has a central facilitator; partners work together and meet to compare performance and processes Network model – no facilitator is involved and partners communicate directly with each other Sole operator model – using an arranged site meeting or visit to observe the process and seek information from the host partner Sole operator model – using an unannounced visit to observe the process from the public’s point of view Sole operator model – using a customer role play to see how the process operates from the perspective of the customer Sole operator model – using public research, such as internet pages, price lists, promotion materials to acquire publicly available information without the need to physically visit the partner Sole operator model – using a telephone interview to seek a range of information on the spot

5

2

1

4

5

4

4

1

3

2

2

2

2

4

4

4

1

3

1

5

2

3

1

5

2

2

1

4

3

3

2

5

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Benchmarking Plan
Team:
Benchmarking steps
1. Appoint a facilitator 2. Approach Benchmarking partners and negotiate for their participation 3. Arrange the logistics for partners to meet and communicate with each other 4. Agree the overall plan with each partner 5. Train the partners in Benchmarking techniques 6. Agree and define the processes to Benchmark 7. Define the performance measures 8. Collect performance measure data 9. Process map the processes 10. Compare performance results 11. Compare processes 12. Agree best practice performance and process features 13. Complete a gap analysis 14. Develop improvement plan 15. Compare improvement successes
Note: Months can be translated to weeks to suit your project. Only include those steps that are required for your Benchmarking model (approach). If you require more columns, setup this page to Landscape and insert more columns.

Date:
Require d yes/no Responsib ility Mont h1

Page:
Mont h2 Mont h3 Mont h4 Mont h5 Mont h6

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Negotiate with Benchmarking Partners
Benchmark>

Purpose
To negotiate with a selected number of potential Benchmarking partners to seek their participation in a Benchmarking study of a specified service using a specified approach.

How to Proceed
1. Agree on the organisations to target for Benchmarking negotiation.

2. Identify who is the best person to talk to and write to them, introducing the Benchmarking opportunity and seeking an initial meeting. 3. Prepare the Benchmarking information package. 4. Meet with the potential partner, outline the approach, present the Benchmarking package, and answer any questions they may have. 5. Modify your Benchmarking approach to accommodate their concerns or issues.
6. Prepare the Benchmarking partners' letter of agreement (see template

below) and Benchmarking code of conduct (use the template below).

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Benchmarking partners letter of Agreement (Content)
1. The purpose of the Benchmarking study; 2. The starting and ending dates for the study; 3. The number and names of the Benchmarking partners; 4. The service or processes that will be Benchmarked; 5. The steps in the study and their timing; 6. Approximate resources required to prepare the inputs; 7. The schedule of meetings (date and time), the purpose of each meeting, and the inputs required from the partners for each of those meetings; 8. Agreement to the Code of conduct (see attached); 9. A schedule of likely costs that each partner may have to contribute; 10. Communication protocols – especially if your using a facilitator; 11. Method of lodging a complaint or dissatisfaction with the process or a partner; 12. Publication of the Benchmarking results and reporting the results back to the partners; and 13. Assessment of satisfaction with the process at the end of the study.

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Benchmarking code of conduct
We agree to abide by the following principles for Benchmarking with our Benchmarking partners.

1.

KEEP IT LEGAL
If we have any concerns about the legality of an activity we will not proceed. We will be aware of the implications of legislation, local laws and regulations in dealings with competitors. We will not benchmark sensitive or proprietary information with a competitor. We will be aware of commercial sensitivities and refrain from obtaining trade secrets by any means.

2.

BE WILLING TO GIVE WHAT YOU GET
We will provide the same type and level of information to our Benchmarking partners as we expect to receive from them. We will not request information we would not give. We will communicate openly and honestly at all times

3.

RESPECT CONFIDENTIALITY
We will treat benchmarking data as confidential between the Benchmarking individuals and organizations involved. We will never talk about another Benchmarking organization without its permission.

4.

KEEP INFORMATION INTERNAL
We will ensure information exchanged in a benchmarking study is kept confidential. We will not disclose this information to anyone outside the benchmarking study. We will ensure information obtained from a benchmarking study will only be used to make improvements to processes within the organizations involved in that study.

5.

USE BENCHMARKING CONTACTS
Our requests for any benchmarking study will be initiated through a benchmarking contact authorized by the benchmarking partners. We will always identify ourselves, our organization and our purpose to the benchmarking partners.

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6.

DON'T REFER WITHOUT PERMISSION
We will not pass on any information obtained through a benchmarking study to a third party without the permission of the first party.

7.

BE PREPARED FROM THE START
We will be fully prepared before making an initial benchmarking contact and when we conduct a site visit. We will not waste our benchmarking partner's time. We will give our benchmarking partner a copy of our questionnaire and agenda before we undertake a site visit.

8.

UNDERSTAND EXPECTATIONS
We understand how our benchmarking partners would like to be treated.

9.

ACT IN ACCORD WITH EXPECTATIONS
We will treat our benchmarking partners as they would like to be treated.

10.

BE HONEST
We will be open and honest in all our dealings with our benchmarking partners.

11.

FOLLOW THROUGH WITH COMMITMENTS
We will follow through with each commitment made to our benchmarking partners in a timely manner.

Signed by:………………………………………………………..Date: ………………………..

Source: International Benchmarking Clearing House, American Productivity and Quality Center, Houston, USA.

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Compare with partners
Benchmark>

Purpose
To discover how your Benchmarking partners deliver their service and what service performance they are achieving.

How to proceed
1. Hold the first meeting to confirm the Benchmarking objectives, approach, tasks, schedule and participants.
2. Update the Benchmarking plan if necessary.

3. Undertake the steps agreed to in the Benchmarking plan 4. Identify the best practices from the Benchmarking partners and perform a “Gap analysis” (use template below)

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Best Practice Gap Analysis
Best practice feature
Importance 5= Critical 4=Very important 3=Important 2=Not that important 1=Not important at all How we rate 5= At best practice 4=Very good 3= Good 2= Fair 1=Poor Our gap to Best Practice Importance minus rating

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16.

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Innovate

The Innovate phase is the point at which you take all of your hard work from Analysis and Benchmarking and develop your own ideas and recommendations on how to improve your service.

The Innovate phase involves four tasks: 1. Identify preferred solutions 2. Recommend improvements 3. Secure funding 4. Approve CIB Implementation

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Identify preferred solutions
Innovate>

Purpose
To select the best improvement opportunities.

How to Proceed
1. List all of the most important root causes and opportunities for

improvement using the worksheet (use template below). 2. Score and then rank the most important root causes and opportunities.
3. Identify the optional solution strategies and list these for each important

root cause (use the template below).
4. Score the optional solutions and rank them from highest to lowest.

5. Review the solutions for illogical results.
6. Agree the preferred solutions.

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Most Important Root Causes and Opportunities Worksheet
Will directly affect most existing customers
High affect 6 Medium affect 3 Low affect 1

Will extend the service to many more customers
Large extension 6 Medium extension 3 Low extension 1

Will improve service performance
High improvement 6 Medium improvement 3 Low improvement 1

Will reduce unit output costs
High reduction 6 Medium reduction 3 Low reduction 1

All Root Causes and Opportunity for Improvement

Total
Add the scores

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Advance a Solution Matrix
Impact on improving the process performance
High Impact 6 Medium 3 Low 1

Most Important Root Cause or Opportunity for Improvement (taken from the preceding worksheet)

Alternative Solution Strategies
Brainstorm different ways of addressing the Root Cause or Opportunity Ask: “What other ways can this be done?”

How Cheap it would be to implement
Cheap 6 Acceptable 3 Expensive 1

How Quickly it can be implemented
Within 1 month: 3 Medium –2 and 5 months: 2 Slow – more than 6 months: 1

How Easily it can be implemented
Easy 3 Moderately difficult 2 Very difficult 1

Preferred Solutions Total
Add the scores Write ‘Preferred Solution’ against the alternatives with the highest total scores and any lowscoring strategies which are very important to implement.

1. 2. 3. 1. 2. 3. 1. 2. 3.

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Recommend improvements
Innovate>

Purpose
To present your findings and recommendations for improvement to your Steering committee for their endorsement

How to Proceed
1. Agree on the Recommendations report index, (use the Report index

guideline below).
2. Collate the preferred solutions from the preceding task. 3. Develop an Implementation plan (use the Implementation plan

template).
4. Estimate the implementation costs and benefits (use the Cost budget

template).
5. Complete an Impact Assessment (use the Impact assessment

template).
6. Complete a Barrier Analysis (use the Barrier analysis template). 7. Draft the Recommendations report (use the Report template below) 8. Quality check the draft Recommendations report. 9. Present the Recommendations report to the Steering Committee.

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Recommendations report – Index guideline
1. A front cover that clearly states title, date and the CIB Project manager’s name and contact details and the version (or issue date); 2. Index page to all of the main headings; 3. Main headings dealing with: a. Executive summary (1 page) b. Background and Terms of reference (1 –2 pages) c. Approach used (1 page) d. Findings and root causes (1 – 8 pages) e. Recommendations (1-3 pages) f. Costs and benefits (1 page) g. Implementation (1-2 pages) h. Actions required by the Steering Committee (1 page) i. Appendices i. Implementation plan ii. Impact assessment iii. Barrier analysis iv. KPI results and future targets v. Customer survey results vi. Community consultation results vii. Process maps viii. Example documents ix. Photographs x. Best practice gap analysis xi. CIB project team members xii. Acknowledgement of Benchmarking participants xiii. Acknowledgement of other participants 4. The paragraphs within the report are numbered, each page is numbered, and each page has a version code; 5. Reference in made throughout the report to applicable appendices to support the findings and causes presented; 6. The report is bound with two covers to protect the quality of the pages; and 7. Where circulation is limited and strict confidentiality is required, each page should be numbered with the serial number of the report, a register be maintained of who was issued which report serial, and the front cover should be clearly marked “not to be reproduced or distributed”.

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Implementation plan
Step
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22.

Timing

Responsibility

End date

Output

Output quantity

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Cost Budget for the Implementation
Step Output Output quantity Human resources Additional external costs

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. Total resources

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Impact Assessment
Who will be impacted How will they be impact ed Should this be redressed Yes/ no How should this be redressed

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Barrier Analysis
Who will be a barrier Why will they be a barrier Should this be redressed Yes/ no How should this barrier be re-dressed

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Secure funding
Innovate>

Purpose
To secure the funding necessary to pay for the proposed improvements.

How to Proceed
1. Develop a cash flow forecast; (use the Cash flow template below)

2. Prepare a financing proposal. 3. Seek an interview and negotiate the funding arrangements. 4. Update the implementation plan.

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Cash flow forecast for the introduction of improved public toilets
Year Cash inflow Current budget allocation from council State government grant for this project already secured Normal government subsidy we get to-day Toilets in operation New users per toilet (person visit) New user charge quantity New use charge fee rate Total new user charges Total cash inflow Cash outflow Recurrent labour Recurrent consumables Recurrent utility charges - water, electricity New toilet construction number New toilet construction unit cost New toilet construction total cost Total cash outflow Net cash flow position per annum Cumulative net cash flow position 100,000 200,000 10,000 20 500 10,000 10 100,000 410,000 100,000 10,000 170 500 85,000 10 850,000 960,000 100,000 10,000 220 500 110,000 10 1,100,000 1,210,000 100,000 10,000 270 500 135,000 10 1,350,000 1,460,000 100,000 10,000 270 500 135,000 10 1,350,000 1,460,000 1 2 3 4 5

80,000 15000 5000 20 5,000 100,000 200,000 210,000 210,000

680000 127500 42500 150 5,000 750,000 1,600,000 (640,000) (430,000)

880000 165000 55000 50 5,000 250,000 1,350,000 (140,000) (570,000)

1080000 202500 67500 50 5,000 250,000 1,600,000 (140,000) (710,000)

1080000 202500 67500 0 5,000 1,350,000 110,000 (600,000)

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Approve CIB Implementation
Innovate>

Purpose
To seek final approval from your Council to move ahead with the implementation of the new or improved service.

How to proceed
1. Put your proposal on Council’s agenda.
2. Consider likely objections (use the Council members and their likely

objections template below). 3. Prepare your proposal. 4. Issue your proposal to Council members.
5. Amend your proposal to accommodate Council changes (use the

Council members’ amendments template).
6. Seek Council’s final endorsement

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Council members and their Likely Objections
Councilor name Position on Council 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. Their likely Objection How we will address this Objection

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Council Amendments
Councilor Objection or request How this has been dealt with Reference inside the amended Project Proposal

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11.

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Implement

The Implement phase of a CI project is where you put your recommendations into action. The CI project team may carry out the implementation work, but if the service is a large service, such as solid waste collection, then a “Change team” that is made up of supervisors and staff from within the service unit may carry out the implementation tasks. The Implement phase involves the following eight tasks:
1. 2. 3. 4. 5. 6. 7. 8.

Build the implementation team Involve managers and staff Plan the change program Document service standards and procedures Deploy procedures and train staff Train customers and suppliers Recognize and reward success Update the media

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Build the implementation team
Implement>

Purpose
To build an implementation team that has the skills, knowledge and capacity to carry out the implementation tasks according to the schedule.

How to proceed
1. Agree the Implementation strategy. 2. Select the team members. 3. Brief the team on the Implementation. 4. Consider the team’s requests. 5. Provide team members with individual plans and documents. 6. Monitor team progress and support the Implementation

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Involve managers and staff
Implement>

Purpose
To raise the awareness and knowledge of all affected managers and staff so they will support the Implementation.

How to Proceed
1. Determine the service staff that needs to be briefed on the Implementation. 2. Prepare the briefing materials. 3. Organize venues, questionnaires, input forms, presentation materials, facilities, and presenters. 4. Promote the briefing event and issue invitations to staff. 5. Hold the briefing event and seek staff inputs. 6. Collate and consider all staff inputs. 7. Amend the Implementation plan if necessary

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Plan the change program
Implement>

Purpose
To develop a detailed plan of tasks and their timing so the Implementation is thorough and concludes according to the overall schedule accepted by Council.

How to Proceed
1. Determine whether or not a Change program needs to be defined at the local level or the central level. 2. Assign responsibility to develop the Change program. 3. Develop the Change programs (detailed implementation plan). 4. Verify that all Change programs are consistent with the overall Implementation plan, finish dates, estimated resources and costs. 5. Approve the detailed Change programs. 6. Encode the Change programs with a Version control and/ or approval date and the name of the approver.

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Document service standards and procedures
Implement>

Purpose
To document the service standards and operating procedures of the improved service so that service staff and customers have a consistent understanding of how the service will operate and what performance level is expected.

How to Proceed
Define the service standards. 1. Obtain and review your Council’s standards for documenting Service standards and operating procedures. 2. If the above is not available, then define how Service standards are to be documented and version controlled in your Council. 3. Define the performance standards for the service in respect of: Timeliness; Quality; Customer service and satisfaction; Access. 4. Define the other components of the Service standard. 5. Develop a publication and distribution strategy. Publication format and medium options are: Service brochure; Council internet site; Council Service directory; Service poster, Sign board etc. Distribution options are: All households; All school students;
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All commercial businesses; All customers; All residents. 6. Publish and distribute the Service standards in the agreed format. Define the operating procedures. 7. Obtain and review your Council’s standards for documenting operating procedures. 8. If the above is not available, then define how procedures are to be documented and version controlled in your Council. 9. Process map the improved service (how it will operate). 10. Agree the process map with the service manager. 11. Develop a publication and distribution strategy. Publication format and medium options: Procedure manual; Loose leaf paper pages; Cards; Intranet site; Electronic document on a central server. Distribution options: All managers in the City; All employees in the City; All service staff involved in the procedure; On a request basis; Anybody using the Intranet or Internet. 12. Document the service procedure using the agreed format and medium. 13. Approve the new procedure and register it in the Procedure index (or version control).

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Deploy procedures and train staff
Implement>

Purpose
To provide information and direction to all service staff so they can deliver the improved service according to the improved design and achieve the expected service performance targets.

How to Proceed
1. Nominate the staff that requires training in the new procedure. 2. Decide who will deliver the training and when. 3. Decide upon the training medium and approach: a. Face to face training; b. Video show; c. Workshop; d. Teach; e. Practice; f. Experiment; g. Role play; h. Progressive or all at once. 4. Develop the training materials: a. Operating procedures, b. Case studies, c. Role plays; d. Practice transactions. etc; 5. Publish all the required material for distribution to the staff. 6. Organize a training venue, facilities and computer access if required. 7. Deliver the training. 8. Seek staff feed back on operational difficulties or training deficiencies. 9. Re-dress operational difficulties or breach in the procedure. 10. Update staff records to reflect their training and new skills.

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Train customers and suppliers
Implement>

Purpose
To raise the understanding of customers and suppliers on how the improved service is to operate and what specific actions are required from them to ensure service performance can be achieved as specified.

How to proceed
1. Define the customer and supplier categories that require training.
2. Define the training needs or the change in customer/ supplier behavior

that is required. 3. Determine the best training medium to be used to reach these customers and to achieve knowledge retention. 4. Negotiate with participating parties such as TV stations, other agencies for their support. 5. Agree upon a training schedule. 6. Develop the training materials that meet the needs and fit with the chosen medium and participating agencies. 7. Deliver the training as scheduled.
8. Measure the learning and behavior change. 9. Assess the learning and behavior change and schedule further training

as required.

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Recognize and reward success
Implement>

Purpose
To recognize and reward service staff, the Implementation team, customers and suppliers for their contribution to the successful implementation of the improved service.

How to proceed
1. Decide upon the event or results that define the end of the Implementation. 2. Measure the degree of success the Implementation has achieved. 3. Define the people or groups that should be recognized for their contributions. 4. Decide upon specific individuals or staff groups that should be offered benefits. 5. Decide upon the method and timing of the recognition. 6. Decide upon the timing, form and value of the benefits. 7. Conduct the recognition events. 8. Issue the benefits to individuals. 9. Seek independent views on the degree of satisfaction with the celebration events and reward benefits and note any dissatisfaction for future reference.

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Update the media
Implement>

Purpose
To provide information and evidence to the media with the expectation the media will positively report upon the achievements of the municipality in it’s service improvements.

How to proceed
1. Maintain a record of all current and completed CIB projects. 2. For each CIB Implementation, progressively build up evidential material on the success and outcomes of CIB projects as they progress with their implementation; a. Customer interviews (Video and recorded) b. Supplier interviews c. Service staff interviews d. Photographs of changes (Video and still) e. Key Performance Measure trends (use independent data collection) f. Progress reports to the Steering Committee 3. Decide upon a media release strategy: when, how and who to. 4. Develop media release documents consistent with the media strategy. 5. Include customer interviews 6. Include photographs Include KPI trend data 7. Release the above information to the media.
8. Coordinate media interviews with senior managers and the Mayor or

councillors as requested. 9. Monitor media reports and validate their accuracy. 10. Correct any inaccurate or misleading media reports. 11. Report to the Steering Committee (or Council) on the extent of media coverage in respect of your CIB projects.

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Sustain

The Sustain phase of a CI project is where all of the changes that have been successfully implemented during the Implementation phase are now put firmly in place and the new service delivery becomes the normal way. The sustain phase of a CI project involves the following six tasks:
1. 2. 3. 4. 5.

Accept feed back on new procedures Measure on going performance Adjust to counter poor performance Update budget assumptions Update the service standards

6. Audit compliance

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Gather Feedback
Sustain>

Purpose
To receive constructive feedback on the improved service or changed process from customers, suppliers and service staff, so that any initial problems are resolved and expected improvements are fully realized.

How to Proceed
1. Decide what feedback should be collected and when: a. Service difficulties; b. Customer satisfaction; c. Supplier satisfaction; d. Hazards or risks; e. Access; f. Responsiveness. 2. Decide upon the customer, supplier, staff groups to participate. 3. Plan the feedback approach: a. Survey. b. Workshop. c. Focus group. d. Interview. e. Opinion box. 4. Prepare the survey instrument. 5. Test the questionnaire. 6. Conduct the surveys, focus groups, or workshops.
7. Collate and analyze the results. 8. Determine the changes necessary to further improve the new service. .
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Measure on-going performance
Sustain>

Purpose
To measure the ongoing performance of the improved service to ensure the inputs are being correctly supplied, the outputs are being delivered as planned and the benefits from the service are being realized as expected.

How to proceed
1. Decide upon which inputs, outputs and outcomes are to be measured. 2. Decide upon which aspect of these should be measured. 3. Define the performance measure. 4. Collect the performance data. 5. Process the data and produce the performance reports. 6. Monitor the results and identify any failings in expected performance.

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Adjust to counter poor performance
Sustain>

Purpose
To analyze the results from the customer, supplier and service staff feedback and the performance results and take corrective action to ensure the improved service reaches its expected performance.

How to Proceed
1. Identify implementation problems that need corrective action. 2. Complete a root cause analysis of each issue. 3. Select a preferred solution for each root cause. 4. Develop an Implementation plan for the preferred solutions. 5. Cost the additional corrective actions. 6. Present the Implementation plan and its costs to the Steering Committee. 7. Adjust the overall Implementation budget with the above approval. 8. Implement the actions according to the Implementation plan.

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Update budget assumptions
Sustain>

Purpose
To update the budget assumptions in relation to service access, service standards, output unit costs, and demand management strategies so that future budget allocations will provide sufficient funds to sustain the improved service.

How to Proceed
1. Define the service scope – what the service is, how it operates, any changes to the service over the last year, and what is actually delivered. 2. Calculate the last year’s average output unit net cost. 3. Forecast the new year’s output unit quantity . 4. Adjust the output unit price (fee) based upon Council policy and inflation. 5. Multiply the new unit fee with the new forecast volumes. 6. Adjust the old average output unit cost for inflation and additional scope. 7. Multiply the new output unit cost with the new output unit volumes. 8. Calculate the net cost based upon output units. 9. Prepare a line item budget for the new year. 10. Reconcile the two budgets at the net cost level to ensure resources are available to meet the new demand. 11. Adjust the service scope (standards) or output volume to achieve reconciliation between the output based budget and the line item budget
12. If the output volumes are reduced (compared to the forecast), a

demand management strategy needs to be specified and included in the adjusted service scope or standards.

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Update service standards
Sustain>

Purpose
To update the Service standards (or the Customer charter) to reflect the service as it will be provided in the New Year, in respect of its description, access, fees, timeliness, quality, process and grievance redress.

How to Proceed
1. Understand your council’s standards for documenting Service standards. 2. Obtain the previous Service standard and review its contents. 3. Review the recent changes to the service. 4. Define the new Service standard. 5. Develop a publication and distribution strategy.
a.

Publication format and medium

i. ii. iii. iv. v. i. ii. iii. iv. v.

Service brochure; Council internet site; Council Service directory; Service poster, sign board etc.
b.

Distribute to:

All households; All school students; All commercial businesses; All customers; All residents. 6. Document the Service standards in the publication format. 7. Distribute the Service standard document.

Analyse Workbook

Created: 20 Sept 07

Revised:

© 2007 ADB Institute

79 of 81

Continuous Improvement & Benchmarking

Audit compliance
Sustain>

Purpose
To identify any processes that have become non-compliant with the standing procedures and may result in inefficiencies, unacceptable risks or lead to poor performance.

How to proceed
1. Decide upon who will conduct the audit and approximately when. 2. The auditor plans the audit program in respect of: a. What service processes will be audited; b. Timing of the audit; c. Staff notification method; d. Staff who will participate; e. Standing procedures that will be the reference point; f. Method of reviewing the current process; g. Method of documenting non-compliance; and h. How the results will be reported and discussed. 3. Notify staff of the internal audit schedule. 4. Obtain the current standing procedures. 5. Review current processes and reconcile with the procedures. 6. Document non-compliant processes. 7. Prepare the Audit report. 8. Discuss the Audit results with management and staff. 9. Agree on a course of action to correct non-compliant processes. 10. Agree on a schedule to follow up the planned corrective actions.

Analyse Workbook

Created: 20 Sept 07

Revised:

© 2007 ADB Institute

80 of 81

Continuous Improvement & Benchmarking

11. Review the actual corrective actions and confirm back to management these are complete and effective.

Analyse Workbook

Created: 20 Sept 07

Revised:

© 2007 ADB Institute

81 of 81

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