Develop the Benchmarking approach

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Benchmark
Continuous Improvement & Benchmarking

Learning objectives

Have the skills to:
   

Recognise the different Benchmarking approaches Score your Benchmarking study needs Select the best approach Formulate the Benchmark study plan

Needs Approaches Score Select Plan study

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Continuous Improvement & Benchmarking Module: Develop the Benchmarking approach

Facilitated spoke model Facilitated spoke model
Partner Partner Partner

Facilitator works on behalf of the partners; calls for the information, collates the data, prepares a data summary then feeds the information back to all partners. The partners never meet each other.

Partner Partner Lead Partner Facilitator Partner Partner Partner Partner

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Continuous Improvement & Benchmarking Module: Develop the Benchmarking approach

Facilitated network model Facilitated network model
Partner Partner Partner

Facilitator works on behalf of all partners; facilitator organises partners to meet and work collaboratively on the BM study. Partners meet regularly and exchange performance information, process information and agree best practice features for the subject service.

Partner

Facilitator

Partner Partner

Partner Partner
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Continuous Improvement & Benchmarking Module: Develop the Benchmarking approach

Sole operator model
    

Site visit Unannounced visit Customer role play Research Telephone interview

Information flows one way

No facilitator involved. Lead “partner” seeks information from a number of other “partners”. Information flows only to the lead partner, no information is shared with the other partners. Different approaches can be used in this model, some of which do not disclose the BM study is actually occurring.

Sole operator model
Partner Partner Partner Partner

Lead Partner Partner
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Continuous Improvement & Benchmarking Module: Develop the Benchmarking approach

Score your BM study Needs
Service or process to be Benchmarked I will seek detailed performance measurement information =5 I will not request any performance indicator information = 1 5 2 3 I will request an indepth understanding of the process = 5 I will not require an indepth understanding 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 5 2 4

Solid waste collection – review of service standards Automation of the property data base Library services – purchasing and cataloguing new books

1 5 2

1 4 2

See next slide 6
Continuous Improvement & Benchmarking Module: Develop the Benchmarking approach

Automation of the property data base

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5

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Choose the best fit BM approach
Benchmarking model Provides Performance indicators only Provides In depth understanding of processes 2 Provides Complex problem solving – policy development 1 Provides Quick – short duration – around two weeks 4

You match the needs scores to the model scores to choose the best fit

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

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Continuous Improvement & Benchmarking Module: Develop the Benchmarking approach

Formulating the BM study plan
Benchmarking steps
Fac’ spoke Fac’ network Site meeting Unannou nced visit

Each model has a different requirement
Cust’ role play Research Tel’ interview

Benchmarking plan steps for each model

Step requirements

1 2

Appoint a facilitator Approach Benchmarking partners and negotiate for their participation Arrange the logistics for partners to meet and communicate with each other Agree the overall plan with each partner Train the partners in Benchmarking techniques Agree and define the processes to Benchmark Define the performance measures Collect performance measure data Process map the processes

yes yes yes

yes yes yes

yes yes

yes yes

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4 5 6 7 8 9

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10 Compare performance results 11 Compare processes 12 Agree best practice performance and process features 13 Complete a gap analysis between current processes and performance to best practice 14 Develop improvement plan 15 Compare improvement successes

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Continuous Improvement & Benchmarking Module: Develop the Benchmarking approach

Develop an initial study plan for negotiation purposes
Benchmarking plan for a Facilitated Network model
Benchmarking steps 1 2 3 4 5 6 7 8 9 Appoint a facilitator Arrange the logistics for partners to meet and communicate with each other Agree the overall plan with each partner Train the partners in Benchmarking techniques Agree and define the processes to Benchmark Define the performance measures Collect performance measure data Process map the processes Compare performance results
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7

10 Compare processes 11 Agree best practice performance and process features 12 Complete a gap analysis between current processes and performance to best practice 13 Develop improvement plan 14 Compare improvement successes (six months later)

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Continuous Improvement & Benchmarking Module: Develop the Benchmarking approach

Disclaimer

The views expressed in this Toolkit are the views of the authors and do not necessarily reflect the views or policies of the Asian Development Bank (ADB) or Asian Development Bank Institute (ADBI), or their Board of Directors, or the governments they represent. ADB and ADBI do not guarantee the accuracy of the data included in this CD-ROM and accepts no responsibility for any consequences of their use. Terminology used may not necessarily be consistent with ADB official terms.

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Continuous Improvement & Benchmarking Module: Develop the Benchmarking approach

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