Benchmarking For HRDProfessionalsProfessor Jayashree Sadri and Dr.Sorab Sadri
What Is Project Benchmarking And WhyShould A Project Manger Care?Benchmarking is a euphemism for legally ripping offsomeone else’s ideas…..(www.leadingexcellence.com)
Project Benchmarking• Compare to Best in ClassIdentifies organizations with best project practices and results andassists in adapting their practices for innovation in one’s ownorganization or one’s own projects.• Think Outside the BoxEnables Project and Program Managers to learn what is possibleoutside their current belief system.• Improve Projects and Overall SystemWhen carried out correctly, benchmarking can help individual projectmanagers and project organizations achieve a breakthrough in theirperformance.
……… And Why Should A ProjectManger Care?• See where your project performance ranks versus otherprojects in your industry• Achieve Breakthroughs by gaining from other’s experienceUnderstand and improve your own performance, gain 20/20 hindsightwisdom without paying the high price of first hand experience, andattain recognition and good exposure to top management, especiallyin high profile projects• Gain or maintain a competitive advantageEnhancing the efficiency of your project delivery system can be easilytranslated into cost, schedule and safety improvements. This leads toa competitive advantage in the industry.
How Can A Project Manager Be Involved InBenchmarking?On a project levelA Project manager may opt to compare his/her project performance record interms of cost, schedule and operability to similar projects within industry; or lookat the likelihood of a future project success by comparing its scope andcharacteristics to lessen learned from industryOn a program levelBenchmarking several projects that contribute to a bigger program successOr within an overall organizational project management process orsystemExamining the overall organizational project management process againstindustry counterparts performance to improve capital competitiveness
Why Use External Benchmarking?• Impartiality• Confidentiality• Consistency Of Measurement• Standardization Of Industry Definitions• Standardization Of Industry Practices
Why Are Institutions Like CII Needed To PromoteThe Practice Of Benchmarking?Benchmarking involves borrowing practices andideas from competitors in the same industry.• Impartial institutions like CII are needed to regulate the flow ofknowledge, retain the confidentiality of sensitive information andprevent unethical behavior such as bid rigging.CII is hence the keeper of confidentialinformation and the provider of metrics forcomparison• CII develops surveys of practices and provides the quantitativemetrics against which participants benchmark.• CII has an established code of conduct and confidentiality policyto ensure data are treated properly
History of CII Benchmarking•Chartered by the CII BOA in Nov 1993•First Committee Meeting in Feb 1994•First Data Collection in 1996•Developed on-line Questionnaire in 1999
CII Benchmarking Objectives• Provide the Industry with Performance NormsProvide the Industry with Performance Norms• Measure the Use of Selected Best PracticesMeasure the Use of Selected Best Practices• Quantify the Value of Best PracticesQuantify the Value of Best Practices• Provide Member Companies tools forProvide Member Companies tools forself-analysisself-analysis
CompanyContinuous ImprovementProgramCIIResearchCII KnowledgeBase& TrainingBenchmarking& MetricsBenchmarking - An Iterative Process
Benchmarking as Part of the ContinuousBenchmarking as Part of the ContinuousImprovement CycleImprovement CycleImplementImplementBest PracticesBest PracticesMeasureMeasureResultsResultsIdentify OpportunitiesIdentify Opportunitiesto Improveto ImproveSelectSelectImplementationImplementationToolsToolsConductConductTrainingTrainingCompare toCompare toCompetition/Competition/Company TrendsCompany Trends
Who Is Needed To Make This Process Work?• Senior Management• Benchmarking Associate• Project Management• CII Staff & BM&M Committee
Project Managers Company BenchmarkingAssociateCompany Leadership CII Staff, Account Mgrs.& CommitteeCII Benchmarking & Metrics RoadmapResponsible forBenchmarkingCoordinationDecision / Commitmentto Benchmark as Basisfor ImprovementResponsible for ProjectBenchmarking &ImprovementDevelop/ImproveMetrics, Processes,Policies & ProceduresDevelop DataCollection &Reporting ToolsPerform ValidationChecks, Run Analysis& Generate ReportsProvide Input toResearch &ImplementationConduct Training & Feedback SessionsSelect Projects for Analysis & Preload/Initiate Project in CII DatabaseValidateQuestionnairesReleaseQuestionnaire to CIIPerform Self-Analysis & Develop Improvement PlanCompleteQuestionnaire DuringProject ExecutionComplete & SubmitQuestionnaire atProject Close-outReview and Act onInterim CII On-lineRecommendations
Levels Of Use Of The Benchmarking SystemImprove Efficiency Of A Business UnitImprove Performance Of A Single Project Or A Group Of ProjectsImprove Efficiency Of Overall Project SystemImprove Selected Performance Metrics (E.g. Productivity)
Now What…?Develop a Path Forward•Contact your Benchmarking Associate•Identify your CII Account Manager•Attend CII Benchmarking AssociatesTraining