1 2006, all rights reserved Best Practice Institute Best
Practice Benchmarking Best Practice Benchmarking Robert C. Camp
PhD, P E Principal, Best Practice Institute President (Emeritus),
Global Benchmarking Network President, Council of Logistics
Management No part of this publication may be reproduced,
transmitted in any form or by any means, electronic, mechanical,
photocopying, recording or otherwise stored in any information
storage or retrieval system of any nature, without the prior
written permission of the author. For Global Competition and
Cooperation
Slide 2
2 2006, all rights reserved Best Practice Institute Key
Messages l Critical Need For Benchmarking F Today's Imperatives
demand innovative change l Global Initiative For Excellence F
Worldwide search and best practice mastery l Proven Steps For
Success F Improve A Critical Process (What) F Source Best Practice
Partners (Whom) F Document Superior Practices (Info. Resources) l
Breakthrough Results Continue
Slide 3
3 2006, all rights reserved Best Practice Institute Todays
Imperatives l More l Better l Faster l Cheaper l Growth F
Profitable growth F New markets, products l Quality/Satisfaction F
Meeting requirements F Customer Loyalty l Cycle Time Compression F
Non-value added F No value added l Return on Assets F Business
results F Human assets
Slide 4
4 2006, all rights reserved Best Practice Institute Key Factors
for Successful Change l Believing there is a NEED for change l
Determining WHAT you want to change l Developing a PICTURE of what
you want to look like after the change
Slide 5
5 2006, all rights reserved Best Practice Institute
Benchmarking Makes Change Successful l The GAP between internal and
external practices creates the NEED for change l Understanding
industry BEST PRACTICES identifies WHAT you must change l The
composite practices gives a PICTURE of the END POINT after the
change
Slide 6
6 2006, all rights reserved Best Practice Institute How To and
Case Study Books ASQ Quality Press, 1 800 248 1946, 414 272 1734
fax, [email protected], www.asq.org
Slide 7
7 2006, all rights reserved Best Practice Institute Changing
Popularity Source:Fortune, Bain & Co.
Slide 8
8 2006, all rights reserved Best Practice Institute Top 10 Tool
Usage (1993 to Present) Usage Rank% First Year 2004 2002 2004
Satisfaction Strategic Planning*83%79%114.14 CRM***3575723.91
Benchmarking7073233.98 Outsourcing**7173533.89 Customer
Segmentation**6072453.97 Mission/Vision Statements8872263.87 Core
Competencies52651173.97 Strategic Alliances62631383.95 Growth
Strategies*5562993.91 Process Reengineering676119103.90
TQM676118103.93 *Added in 1996, **Added in 1998, ***Added in
2000Source: Bain & Co.
Slide 9
9 2006, all rights reserved Best Practice Institute Worldwide
Reach (Organizations & Processes)
Slide 10
10 2006, all rights reserved Best Practice Institute Worldwide
Reach (Cost Savings & Benefits)
Slide 11
11 2006, all rights reserved Best Practice Institute
Benchmarking is... The process of identifying, understanding and
adapting superior practices from organizations locally and
worldwide to help your organization improve its performance and
achieve priority business results
Slide 12
12 2006, all rights reserved Best Practice Institute Critical
Focus How High? How does he vault that high? Technique Coaching
Conditioning, Nutrition Psychological Preparation Choice of pole
WRONG FOCUS RIGHT FOCUS POTENTIAL PRACTICES FOR BEST
PERFORMANCE
Slide 13
13 2006, all rights reserved Best Practice Institute Types of
Benchmarking l Internal (20%) l Competitive (10%) l Functional
(35%) (Selection Criteria) l Generic Process (35%) Similar
operations within an organization The best direct competitors The
same function outside the industry Innovative, exemplary work
processes Comparison to:
Slide 14
14 2006, all rights reserved Best Practice Institute Improve A
Critical Process (What) Objective: Improve a Mission Critical
Process Steps: Identify (List), Prioritize, Document, Analyze and
Develop Vital Few Measures for a Key Work Process Outcome: Process
Defined for Best Practice Search
Slide 15
15 2006, all rights reserved Best Practice Institute Supply
Chain Detail BUYBUY REPROCESS DISPOSEDISPOSE INSTALLINSTALL
ACQUIREACQUIRE TEAR DOWNREMOVE BUILDDELIVERY DISTRIBUTE A closed
loop Supply Chain operation providing an extensive capability from
new product production, through to asset recovery and disposal
Slide 16
16 2006, all rights reserved Best Practice Institute
Improvement Opportunity Data not available 100% 2.2 days 98.4% 6
days 19 days 5.6% $461K 34.8 days 33.4 days 3.9 92% 5.6 days 79.3%
30 days 76 days 9.7% $239K 68.5 days 84.5 days 1.7 Your
organizations performance
Slide 17
17 2006, all rights reserved Best Practice Institute The
Supply-Chain Advantage Automotive Appliances Chemical Computer
Packaged Goods Pharmaceutical Semiconductor Telecom Industry 4.3%
8.8% 8.1% 14.1% 6.4% 12.0% 7.3% 6.5% 11.9% 13.3% 3.9% 5.8% 9.1%
7.4% 14.1% 10.4% Best in ClassAverage (Percentage of company
revenue spent on supply-chain activities)
Slide 18
18 2006, all rights reserved Best Practice Institute Source
Best Practice Partners (Whom) Objective: Source Partners For Best
Practice Exchange Steps: Best Competitors and Functional Industry
Leaders, Think Laterally, by Analogy, Generalize the Concept
Outcome: Best Practice Organizations Identified
Slide 19
19 2006, all rights reserved Best Practice Institute Best
Practice Search Customer HQ Cold call 800 number Answer center
e-mail Suppliers Research Web pages Posting board Associations
Publications Annual Report Referral Colleague Conference VIP
reference Periodical Best practice Award winner Case study Academia
Network Coordinator Consortium Consultants Software Previous
study
Slide 20
20 2006, all rights reserved Best Practice Institute Document
Superior Practices (Information Resources) Objective: Identify
Existing Best Practice Information Steps: Information Sources
(Which are Primary?), Information Searches (How conducted?), Site
Visits Outcome: Best Practice Findings Reports Obtained
Slide 21
21 2006, all rights reserved Best Practice Institute Best
Practice Collection Alternative Approaches Key: Essential,
Priority, Procedural
Slide 22
22 2006, all rights reserved Best Practice Institute Mine Haul
Truck Courtesy Caterpillar Inc.
Slide 23
23 2006, all rights reserved Best Practice Institute Best
Practice Management Dilemma: l If we only knew what we know F Jack
Swindle, Director, Texas Instruments Solution: l Leverage the
organizations Best Practice knowledge for maximum value
Slide 24
24 2006, all rights reserved Best Practice Institute
Benchmarking Future Will be less formal, done faster, less cost.
Done in distributed, networked environment. Use real time,
interactive meeting technology. Fewer site visits, electronic with
desktop video. Information sharing unique to competitive markets.
Pre-packaged, best practice learning, case studies. Key strategic
planning need for continuous innovation.
Slide 25
25 2006, all rights reserved Best Practice Institute
Benchmarking A CRITICAL TOOL FOR HOW YOU RUN YOUR BUSINESS A
Strategic Strength When Practiced A Fatal Weakness if not
Pursued
Slide 26
26 2006, all rights reserved Best Practice Institute THE RISE
AND FALL OF FADS Influence Index 19501970198019901960 T-Group
Training Brainstorming Theory X and Theory Y Satisfiers /
Dissatisfiers Managerial Grid Decision Trees Management by
Objectives Conglomeration Theory Z One-Minute Managing Corporate
Culture Intrapreneuring Kanban Matrix MBWA Portfolio Management
Restructuring Excellence Quality Circles Wellness Decentralization
Value Chain Zero - Base Budgeting Strategic Business Units Theory Z
Experience Curve Diversification From: Managing on the Edge;
Pascal, Richard T., p 20
Slide 27
27 2006, all rights reserved Best Practice Institute MESSAGE
The mean life of productivity improvement fads has been 8.3 years.
BEST PRACTICE BENCHMARKING has been used for over 20 years.
Why?.......because It works
Slide 28
28 2006, all rights reserved Best Practice Institute A View of
Benchmarking The prime objective of benchmarking is to understand
those practices which will provide a competitive advantage in the
market place; target setting is secondary. Paul Allaire Chairman,
Xerox Corporation
Slide 29
29 2006, all rights reserved Best Practice Institute I Need You
To Benchmark!
