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  2. 2. DEFINITIONS OF BENCHMARKING Benchmarking is the process of comparing the cost, cycle time, productivity or quality of a specific process or method to another that is widely considered to be an industry standard or best practice. Benchmarking is the process of continually searching for the best methods, practices and processes, and either adopting or adapting their good features and implementing them to become “best of the best.”
  3. 3. BENCHMARKING COMPLIANCE(CONFIRMITY)Policy regarding benchmarking protocol should be communicated to all employees employed, prior to contacting external organizations. Guidelines should address the following areas: 1. Misrepresentation. 2. Information requests. 3. Sensitive/proprietary information. 4. Confidentiality.
  4. 4. WHEN TO BENCHMARKBenchmark early and often.During design Helps make decisions about table structure, indexes, etc., Know early on if you have sufficient hardware.Before launch.Anytime you’re wondering “which is faster A or B?”
  5. 5. WHEN NOT TO BENCHMARKTarget is not critical to the core business functions.Customer’s 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.
  6. 6. PERFORMANCE GAPPerformance Performance Gap Time
  7. 7. BENCHMARKING PROCESS PlanningImproving Collecting Practices Data Analysis
  8. 8. 1. PLANNING Determine the purpose and scope of the project. Select the process to be benchmarked. Choose the team. Define the scope. Develop a flow chart for the process. Establish process measures. Identify benchmarking partners.
  9. 9. 2. COLLECTING DATA Conduct background research to gain thorough understanding on the process and partnering organizations Use questionnaires to gather information necessary for benchmarking Conduct site visits if additional information is needed Conduct interviews if more detail information is needed
  10. 10. 3. ANALYSIS Analyze quantitative data of partnering organizations and your organization. Analyze qualitative data of partnering organizations and your organization. Determine the performance gap.
  11. 11. 4. IMPROVING PRACTICES Report findings and brief management. Develop an improvement implementation plan. Implement process improvements. Monitor performance measurements and track progress. Recalibrate the process as needed.
  12. 12. COST OF BENCHMARKING• The three main types of costs are: Visit costs. Time costs. Database costs.
  13. 13. APPROACHES TO BENCHMARKING1. Identify the process to be benchmarked.2. Establish management commitment to the benchmarking process.3. Identify and establish the benchmarking team.4. Define and understand the process to be benchmarked.5. Identify metrics and collect process
  14. 14. 1. IDENTIFY AN APPROPRIATE BENCHMARKING MODELThe generic model is selected as the most appropriate.The approach ensures elements crucial to customer satisfaction.Facilitates an in depth scrutiny of the way operations are currently run.A learning experience.Comparisons with other organizations enable participants to exchange ideas
  15. 15. 2. PROCEDURES REPRESENTING THE APPROACH TAKENIdentify a key process, critical to the success of the service.Document or map the sub-process.Take measurements of factors critical to the success of the process.Analyze the results of exercise and identify gaps in performance.Select benchmarking partners, arrange visit to compare the results of the exercise.Identify “best practice” e.g. methods used by
  16. 16. 3. SELECTING BENCHMARKING PARTNERSMost difficult aspects of benchmarking.Partners are selected from organizations.Interested in benchmarking and willing to participate in the exercise.Not in competition with the demonstration organization.Formal letter will be sent stating procedures for the exercise to the partners.Demonstration organizations will arrange for
  17. 17. 4. THE BENCHMARKING VISITMeeting is set up by the demonstration and the benchmarking partner.Aim - to compare the data and exchange ideas on the process.Meeting is informal, to be led by demonstration organizations with researchers observing.Best practice will be identified and establish.
  18. 18. NECESSARY UNDERPINNINGS(SUPPORT) OF BENCHMARKING1. Time management.2. Communications.3. Formal vs. informal approaches.4. Confidentiality and Learning organization.
  19. 19. 1. TIME MANAGEMENTConsuming time might be better spent on other task or more important matters.To survive, libraries must give up the quick fix philosophy and understand the change is now the norm and stability is a thing of the past.Quality management is a gradual or organic process involve cultural change and holistic approach to management.benchmarking is time consuming process, requires planning, team work and frequent
  20. 20. 2.COMMUNICATIONSessential for quality management initiative, lines of communications may affect location of the library, availability of channels of communication e.g. E-mail, telephone, faxMeetings between senior management and staff involved in the exercise should be setup in advanced and reporting mechanism in place.
  21. 21. 3. FORMAL VS. INFORMAL APPROACHES• Formal methods are: theoretical impractical bureaucratic.• Informal methods of evaluation may be used such as:  Regular team meetings and storming sessions. Service level agreements; service standards. Student course evaluation. Liaison thru Library Advisory Committee. Course review document. Informal comparison of statistics. Participation in university wide survey. Access the board comparison with a member of other
  22. 22. 4. CONFIDENTIALITY AND LEARNING ORGANIZATIONcompare work practices and establish best practices.areas of concern : confidentiality as a problem.misapprehensions : information about procedures are compared and no need for confidential information to be implicated.those who are apprehensive about showing information are not ready to participate in
  23. 23. TYPES OF BENCHMARKINGCompetitive benchmarkingFunctional benchmarkingProduct benchmarkingProcess benchmarkingBest practices benchmarkingStrategic benchmarkingPerformance benchmarkingFinancial benchmarking
  24. 24. COMPETITIVE BENCHMARKINGComparison of performance among direct competitors. FUNCTIONALUses SWOT analysis. BENCHMARKINGSingle function benchmarking is toimprove the operation if that particularfunction.Complex functions are directlycomparable in cost and efficiency
  25. 25. PRODUCT BENCHMARKINGProcess of designing new products or upgrades to new ones.Comparison of processes.PROCESS BENCHMARKINGFocuses on discrete workprocesses and operating systems.Identify most effective operatingpractices.Power lies in its ability to produce
  26. 26. BEST PRACTICES BENCHMARKINGDon’t reinvent what others have learnt to do better!Borrow shamelessly!Adopt, adapt, advance!Imitate creatively!Adapt innovatively! FINANCIAL BENCHAMRKING Performing financial analysis. Comparing the
  27. 27. STRATEGIC BENCHMARKING Identify winning strategies. Influences the longer term competitive patterns of the company.PERFORMANCE BENCHMARKING Enable managers to assess their competitive positions. Focus on elements. Primary techniques are applied.
  28. 28. REASONS FOR BENCHMARKINGcost comparison.reduction in turn around times.reduction in error rates.establishing meaningful performance indicators /realistic output measures.feasibility of collaboration to achieve cost saving.investigate in sourcing, outsourcing and collaborative opportunities.establish individual performance
  29. 29. REASONS FOR BENCHMARKINGexplore appropriate roles and activities of cataloguers.develop improved outcomes for customers.pilot benchmarking / instill value of benchmarking.as an instrument to achieve change.develop bet practice model.validation measure.develop statements of good practice.
  30. 30. PROBLEMS WITH BENCHMARKING Problems with benchmarking occur where Data is not obtained for the process being measured – and analysis becomes subjective No peer group/best practice identified (including data available) The gap between current state and best practice is captured but nothing is done about it Assumed best practice isnt best
  31. 31. APPLICATIONS AND BENEFITSImproves organizational quality.Leads to lower cost positions.Creates buy-in for change.Exposes people to new ideas.Broadens the organization’s operation perspective.Creates a culture open to new ideas.Serves as a catalyst to learning.Tests the rigor of internal operating targets.
  32. 32. APPLICATIONS AND BENEFITSRaises the organization’s level of maximum potential performance.Setting and refining strategy.Reengineering work processes & business systems.Continuous improvement of work processes and business systems.Strategic planning and work setting.Problem solving.Education and idea enrichment.
  33. 33. CRITICAL SUCCESS FACTORS Adopt, adapt & advance: a well designed performance measurement and benchmark system is essential, but there are other critical success factors: Senior management support. Benchmarking training for the project team. Useful information technology systems. Cultural practices that encourage
  34. 34. LIBRARY PROCEDURESSCOPE: Acquisition of Books PurchaseGENERAL POLICIES AND GUIDELINES: Determination of the educational resources of the SHL library is a professional consideration of great magnitude, requiring the cooperative efforts of the acquisition librarian and the faculty members with the College deans
  35. 35. PROCEDURES1. The Director of Libraries directs the Acquisition Librarian to invite book suppliers in batches and assigns staffs to attend book fairs and coordinates with the College Deans for faculty members to attend book fairs2. The Property Officer receives books from suppliers3. The Acquisition Librarian segregates books per college and prepares book acquisition to go with the books
  36. 36. PROCEDURES6. The College Secretary returns/transmits all books to Acquisition Librarian7. The Director of Libraries re-evaluates books recommended and endorse acquisition8. The Acquisition Librarian prepares list of books as “recommended” and “not recommended” per supplier in triplicate9. The Acquisition Librarian transmits all books to Property Office with the duly
  37. 37. PROCEDURES11. The VP/Treasurer approves the P.R./P.O.12. The Purchasing Officer sends approved P.O. to supplier; then forward the approved P.O. to Property Officer and to Accounting for payment.13. The Property officer returns books “not recommended” to suppliers, prepares RR for the purchased books per the approved P.O. and transmits books per approved P.O.14. The Acquisition Librarian records all
  38. 38. XEROX-12 STEPBENCHMARKING PROCESSPhase 1: Planning 1. Identify what to benchmark. 2. Identify comparative companies. 3. Determine data collection method and collect data.Phase 2: Analysis 4. Determine current performance gap. 5. Project future performance levels.Phase 3: Integration 6. Communicate finding and gain
  39. 39. XEROX-12 STEP BENCHMARKING PROCESSPhase 4: Action 8. Develop action plans. 9. Implement specific actions & monitor progress. 10. Recalibrate benchmarks.Phase 5: Maturity 11. Attain leadership positions. 12. Fully integrate practices into processes.