8/2/2019 Why Bench Marking Efforts Fail

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  Mohammad Zaid

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Why Benchmarking Efforts Fail

The cause of failed benchmarking proj ects is the same as those for ot her failed projects

(DeToro, 1995):

1.   Lack of sponsorship: A team should submit to management a one – to four page

benchmarking project t hat describes the project, it s objectives, and potent ial

costs. If the team can’ t gain approval f or the project or get a sponsor, it makes

li t t le sense to proceed with a project t hat ’ s nor understood or appreciated or thatis unlikely to lean to corrective action when completed.

2.   Wrong People on them: Who are the right people for a benchmarking team?

Individuals involved in benchmarking should be the same ones who own or work in

the process. It ’ s useless for a team to address problems in the business areas that

are unfamiliar or where the team has no control or influence.

3.   Teams don’t understand their work completely: If the benchmarking team

didn’ t map, f lowchart, or document it s work process, there can’ t be an effective

transfer of t echniques. The intent in every benchmarking project i s for a team to

understand how its process works and compare t o another company’ s process at a

derailed level. The exchange of process steps is essential for improved

performance.

4.   Teams take on too much: The task a team undertakes is often so broad that it

becomes unmanageable. This broad area must be broken into smaller, more

manageable proj ects that can be approached logically. A suggested approach is to

create a functional flowchart of an entire area, such as production or marketing,

and identify its process to be benchmarked that would best contribute to the

organization’ s obj ecti ves.

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  Mohammad Zaid

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5.   Lack of long-term management commitment: Since managers aren’t as familiar

wit h specifi c work issues as their employees, they tend to under-est imate the

t ime, cost , and effort required to successfully complete a benchmarking project.

Managers should be informed that while it ’ s impossible to know t he exact t ime i t

wil l t ake for a typical benchmarking project, a rule of t humb is that a team of f our

or five individuals requires a third of their time for five months to complete a

project.

6.   Focus on metrics rather than processes: Some firms focus their bench-marking

efforts on performance targets (matrices) rather than processes. Knowing that a

compet it or has a higher return on assets doesn’ t mean that i ts performance alone

should become the new target (unless an understanding exists about how the

competitor differs in the use of its assets and an evaluation of its process reveals

that it can be emulated or surpassed)

7.   Not positioning benchmarking within a larger strategy: Benchmarking is one of

many total quality management tools- such as problem solving, process

improvement, and process reengineering – used to shorten cycle time, reduced

costs, and minimize variation. Benchmarking is compatible with and

complementary to these tools, and they should be used together for maximum

value.

8.   Misunderstanding the organization’s mission and vision by first attaining the

short-term objectives: All benchmarking activity should be launched by

management as part of an overall st rategy to fulf il l the organization’ s mission and

vision by fi rst att aining the short -t erm objecti ves and then the long-t erm goals.

9.   Assuming every project requires a site visit: Suff icient information is often

available from the public domain, making a site visit unnecessary. This speeds the

benchmarking process and lowers the cost considerably.

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  Mohammad Zaid

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10.  Failure to monitor progress: Once benchmarking has been completed for a

specif ic area or process benchmarks have been established and process changes

implemented, managers should review progress in implementation and results.

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