BENCHMARKING

FOR BEST PRACTICES

WHAT IS BENCHMARKING

Method for identifying and importing best practices to improve performance Process of learning, adapting, and measuring outstanding practices and processes from any organization to improve performance

WHY BENCHMARK

Identify opportunities to improve performance Learn from others experiences Set realistic but ambitious targets Uncover strengths in ones own organization

Better prioritize and allocate resources

TYPES OF BENCHMARKING

STRATEGIC BENCHMARKING:
o

Involves examining long-term strategies

Used by successful high performers

PERFORMANCE BENCHMARKING
Key Products
o

Performance characteristics
Key Services

Done by 3rd party to protect confidentiality

Cont..

PROCESS BENCHMARKING

Improving critical processes and operations Results in short term benefits.

FUNCTIONAL BENCHMARKING

Benchmarking on a single function

Leads to dramatic improvements.

Cont..

GENERIC BENCHMARKING

Comparison of similar business processes or functions regardless of industry.

INTERNAL BENCHMARKING

Analyzing operations within the same organization Access to sensitive and standardized data is easier, Real innovation may be lacking.

EXTERNAL BENCHMARKING

Analyses best in class outside organizations. Significant time and resource involved credibility of the findings.

BENCHMARKING PROCESS

Planning

Improving Practices

Collecting Data

Analysis

1. PLANNING

Determine the purpose and scope of the project

Select the kind of benchmark Choose the team Define the scope Develop a flow chart for the process Establish process measures Identify benchmarking partners

2. COLLECTING DATA

Conduct background research

Use questionnaires to gather information

Conduct site visits & interviews for additional inf.

3. ANALYSIS

Collect collected to analyze scope of improvement Compare existing process with that of appropriate reference models.

Agree on expected targets for improvement.

4. ASPECTS OF MPROVEMENT
Pursuit of excellence is the underlying and ever present goal of benchmarking practices.

Strong strategic focus and flexibility in achieving goals set forth by management.

Adequate planning, training, and open inter=departmental communication.

IMPROVING PRACTICES

Medical record audit and feedback Opinion leader Academic detailing Chart-based reminders Computerized decision support evaluation

WHEN NOT TO BENCHMARK

Target is not critical to the core business functions

Customers requirement is not clear

Key stakeholders are not involved

Inadequate resources to carry through

No plan for implementing findings

Fear of sharing information with other organizations

WHAT ARE THE SIDE EFFECTS TO SUCCESSFUL BENCHMARKING?

o Inadequacies must be clearly recognised and understood before continuing the exercise. o Don't try and benchmark too many things to begin with

o
o o

Don't waste time benchmarking things that are just "nice to know
Be precise in defining what is to be measured. Test the benchmarks internally before consulting with outside companies.

Organisation's priorities change with time, and so benchmarks should be regularly reviewed

THANK YOU

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