WorkshopOctober 2015
Stage 3
Acquire (acquire best practices)
9. Obtain approval to start the next stage of TRADE
1. Establish criteria for selecting benchmarking partners 2. Select potential benchmarking partners3. Invite and acquire benchmarking partners
4. Prepare for data collection5. Collect and store data 6. Analyse data
7. Formulate recommendations8. Review project progress and TOR
Step 1 – Establish criteria for selecting benchmarking
partners What processes/best practices does the partner need to
have? What level of performance does the partner need to have
achieved? How will we know the partner has good to best practices?
How reliable is the evidence? Is the location of the partner important? Which organisations are more likely to participate? What should the partner’s organisation profile be? Is it
important? Are we including competitors? If so, what data/information is
publically available?
For projects where you are focussing on a number of sub-processes you may wish to have different criteria and
therefore different partners for each sub-process
Example of a Partner Selection Table – Simple Version
PARTNER SELECTION TABLE 1 (PST1) - SIMPLE VERSION"Best Practice" Selection Criteria (What best practices
or performance level do your benchmarking partners need to have in order for you to want to
learn from them?)
Rationale for "Best Practice" Selection
Criteria (Why is this criteria
important?)
Names of organisations to
consider as potential partners
Proposed method to learn from benchmarking partner (e.g. site visit, iternet research, survey, phone/skype call)
"Other" Selection Criteria (Is there any other criteria that is important when selecting a benchmarking partner such as location, industry, organisational size, culture?)
Rationale for "Other" Selection Criteria (Why
is this criteria important?)
Example of a Partner Selection Table – Detailed Version
Pre-screening Criteria can be useful as an initial funnel to identify potential benchmarking partners
The partner must have at least a performance level of X for the benchmarking area of focus
The partner must be certified to ISO XXXXX standard
The partner must be within X country The partner must have at least X
employees
PARTNER SELECTION (PS)Name of Potential Benchmarking Partner?Address of partner?Name of contact person at partner if known?Describe the partners’ best practice, if knownEvidence that the partner has good to best practices which are related to the benchmarking area of focus (e.g. evidence from brainstorming, questionnaire, expert opinion?)
What level of performance has the partner achieved, if known?Other information on the partner?
Weighting % Total
0
Description of Criteria Rating System Weighting % TotalRelationship between benchmarking area of focus and partner’s best practice
Strong = 4, Moderate = 2, Weak/Unknown = 0
0
What level of performance has the partner achieved?
World Class/Outstanding = 4, Good/Above Average = 2, Poor/Unknown = 0
0
How recent is the evidence? 0
Location of partner 0
Likelihood to participate? 0
Number of Employees?Industrial Sector?Competitor?
Total Score 0
Description of Criteria Score (Pass = 1, Fail = 0)
A.
Pre-Screening Criteria (Pre-Screening criteria that need to be met that are specific to the project)
Final TotalPartner Selection Criteria
Score
B. C.
Very reliable = 4, Moderately reliable = 2, Unknown = 0
Evidence of good to best practices Is the evidence from multiple sources?
Multiple sources = 4, Two sources = 2, One source = 0
0
Organisational Profile?A = 1000 or more, B = 500 to 999, C A = Manufacturing focused B = Y = Yes N = No
0
One year = 4, One to five years = 2, More than five years = 0
Local = 4, National = 2, International = 0
Strong = 4, Moderate = 2, Weak/Unknown = 0
Is the evidence reliable?
PARTNER SELECTION (PS)Name of Potential Benchmarking Partner?Address of partner?Name of contact person at partner if known?Describe the partners’ best practice, if knownEvidence that the partner has good to best practices which are related to the benchmarking area of focus (e.g. evidence from brainstorming, questionnaire, expert opinion?)
What level of performance has the partner achieved, if known?Other information on the partner?
Weighting % TotalN.A. 1N.A. 1N.A. 1
3
Description of Criteria Rating System Weighting % TotalRelationship between benchmarking area of focus and partner’s best practice
Strong = 4, Moderate = 2, Weak/Unknown = 0
20 80
What level of performance has the partner achieved?
World Class/Outstanding = 4, Good/Above Average = 2, Poor/Unknown = 0
20 80
How recent is the evidence? 4 20 80
Location of partner 4 15 60
Likelihood to participate? 2 5 10
Number of Employees? C N.A. N.A.Industrial Sector? B N.A. N.A.Competitor? No N.A. N.A.
Total Score 330
Local = 4, National = 2, International = 0
Strong = 4, Moderate = 2, Weak/Unknown = 0
Organisational Profile?A = 1000 or more, B = 500 to 999, C A = Manufacturing focused B = Y = Yes N = No
Is the evidence reliable? Very reliable = 4, Moderately reliable = 2, Unknown = 0
2 10 20
One year = 4, One to five years = 2, More than five years = 0
Score4
4
Evidence of good to best practices Is the evidence from multiple sources?
Multiple sources = 4, Two sources = 2, One source = 0
4 10 40
B. Recognised as an innovative/best practice call centre (e.g. 1C. Operated customer service/call centre for at least 5 years 1
Final TotalPartner Selection Criteria
Provides 24/7 phone and email service to its cellular customers. Field technician are called out to assist with resolving some problems. Not been involved in benchmarking before.
Pre-Screening Criteria (Pre-Screening criteria that need to be met that are specific to the project)
Description of Criteria Score (Pass = 1, A. Needs to be based in Australasia 1
Kiwi Cellular
Main Street, NelsonJoe Croft
Very high first call resolution rates
Company quotes that it is currently operating at NZ best. It responded to our questionnaire quoting 93% first call resolution. Our research indicates that this is close to world’s best performance at 95%.
93% claimed
PARTNER SELECTION (PS)Name of Potential Benchmarking Partner?Address of partner?Name of contact person at partner if known?Describe the partners’ best practice, if knownEvidence that the partner has good to best practices which are related to the benchmarking area of focus (e.g. evidence from brainstorming, questionnaire, expert opinion?)
What level of performance has the partner achieved, if known?Other information on the partner?
Weighting % TotalN.A. 1N.A. 1N.A. 1
3
Description of Criteria Rating System Weighting % TotalRelationship between benchmarking area of focus and partner’s best practice
Strong = 4, Moderate = 2, Weak/Unknown = 0
20 80
What level of performance has the partner achieved?
World Class/Outstanding = 4, Good/Above Average = 2, Poor/Unknown = 0
20 80
How recent is the evidence? 4 20 80
Location of partner 4 15 60
Likelihood to participate? 2 5 10
Number of Employees? C N.A. N.A.Industrial Sector? B N.A. N.A.Competitor? No N.A. N.A.
Total Score 330
Local = 4, National = 2, International = 0
Strong = 4, Moderate = 2, Weak/Unknown = 0
Organisational Profile?A = 1000 or more, B = 500 to 999, C A = Manufacturing focused B = Y = Yes N = No
Is the evidence reliable? Very reliable = 4, Moderately reliable = 2, Unknown = 0
2 10 20
One year = 4, One to five years = 2, More than five years = 0
Score4
4
Evidence of good to best practices Is the evidence from multiple sources?
Multiple sources = 4, Two sources = 2, One source = 0
4 10 40
B. Recognised as an innovative/best practice call centre (e.g. 1C. Operated customer service/call centre for at least 5 years 1
Final TotalPartner Selection Criteria
Provides 24/7 phone and email service to its cellular customers. Field technician are called out to assist with resolving some problems. Not been involved in benchmarking before.
Pre-Screening Criteria (Pre-Screening criteria that need to be met that are specific to the project)
Description of Criteria Score (Pass = 1, A. Needs to be based in Australasia 1
Kiwi Cellular
Main Street, NelsonJoe Croft
Very high first call resolution rates
Company quotes that it is currently operating at NZ best. It responded to our questionnaire quoting 93% first call resolution. Our research indicates that this is close to world’s best performance at 95%.
93% claimed
Enter company information
Partner Selection Table
Revise company information
Step 2 – Select potential benchmarking partners
If you are good at Networking (Informal Benchmarking) this will help you to identify potential partners
People share information with people – not companies:•apply effort and build relationships•use that half open door
Develop rich external networks•Invest in “connections” over content
Be an “active” member•- Networks only flourish through contact and contribution
Brainstorming Benchmarking websites Internet searches Benchmarking clubs Literature review Customers and suppliers Experts / Consultants – Universities / trade associations/
government sources Questionnaires
A wide range of sources can be utilised to generate a list of potential benchmarking partners
Ask questions on the area of focus Ask questions related to Partner Selection
Criteria Are they interested in being a benchmarking
partner?
Perhaps send questionnaire to potential partners and random group to collect trend data.
Survey can be used as a partner selection tool
Step 3 – Invite and acquire benchmarking partners
Describe the purpose of the project Explain why you have selected the
organisation as a potential partner Outline their level of involvement Outline the benefits from
participating Bring to their attention the
Benchmarking Code of Conduct (send them a copy)
Step 4 – Prepare for data collection
Methods of data collection:
Questionnaire for completion by post, email, telephone
Site visit approach to collect data and information
Audit check-list Work-study approach Process mapping
Preparing for a site visit – Are our questions ready?
• What methods will we use to obtain the information? E.g. Site visit tour, process mapping, site visit interviews, performance measure comparisons, partner presentations.
• What is the purpose of the site visit?• Who will design the research method and
questions?• Have we prioritised the importance of each
question? • Do we know who we want to answer the
questions? • Are there particular follow-up questions we
want to ask based on the partners responses to previous questions or information they have given?
• Have we made sure that our own organisation has answered the questions?
Preparing for a site visit – Structure of visit
• What should be included in introductions? E.g. introductions for project team and benchmarking partner staff, explanation of purpose of visit and benchmarking code of conduct.
• What do we want to show them? e.g. company brochure, presentation, video, flow-chart, product, our own organisation’s answers to the site visit questions.
• Who do we want to see? e.g. position(s), no. of people
• What do we want to see? e.g. process in action• How will we close the site visit?
Preparing for a site visit – Time-plan considerations
• How long should the introduction be? • How long should the interview (s) be?• How long should the site tour be?• How long should the closing session be?• How long should the whole site visit be?
Preparing for a site visit – Project team roles
• How many people from our team should go?
• Who should be the lead person?• Who will ask the questions?• Who will record the responses?
Preparing for a site visit - Pre-visit correspondence with
benchmarking partners
• Has the date of the site visit been agreed with the partner?• Has an agenda for the site visit been agreed with the
partner? • Does the partner know the key questions you will be
asking? • Has the partner been asked to bring along to the meeting
any supporting documentation that they are willing to share?
• Have you been informed of who you will be meeting and their positions?
• Is the length of the whole site visit acceptable to the partner?
• If you are planning to record the meetings have you obtained permission from the Partner?
• Has a copy of the benchmarking code of conduct been sent to the partner?
Preparing for a site visit – Post-visit correspondence with
benchmarking partners
• Have you written to the benchmarking partner to thank them for the site visit?
• Have you sent them a copy of the key findings from the site visit or clarified the findings?
• Have you sent them a copy of how your own organisation performs in terms of the site visit questions?
• Have you returned any documentation the partner may have lent you?
Preparing for a site visit – Resources required for a visit
• Agenda / Time-plan• Benchmarking Code of
Conduct• Set of interview questions• Tape recorder• Note paper• Company brochures• Documentation on project• Dress code for visit
Preparing for a site visit – Cost of visit
• Cost of visit? • Cost of transport?• Cost of hotel?• Cost of time lost due to visit?• Cost of documentation,
product prototypes, recording / video equipment?
• Cost of thank you gift?
Step 5 – Collect and store data
Questions for Potential Partners (A Sample)
• CMC reviews strategy and evaluates new partners when approached or when a need arises.
• Do you identify gaps in need that cannot be fulfilled internally?
• How do you identify these gaps?• When do you start identifying these
gaps?• Who is involved in this process?
• How do you establish a need for a partner?
3
• We have partners for CIP, student and talent Development. We also have affiliated associations (e.g. alumni, PAACT).
• How do you maintain them given limited resources?
• How much manpower do you allocate to this process?
• Is there a rationale behind having so many partners?
• Do you have a variety of partners from different industries?
2
• Process Map• Are there specific steps to this process?• What are these steps?• What is the rationale behind these
steps?• What is the relevance of each step to
your organisation?• Do you have separate processes for
new partners and existing partners?
• Is there a process in place to systematically engage (e.g. approaching, cultivating and sustaining) partners?
1
How NJC does itSub QuestionsRoot Question
• CMC reviews strategy and evaluates new partners when approached or when a need arises.
• Do you identify gaps in need that cannot be fulfilled internally?
• How do you identify these gaps?• When do you start identifying these
gaps?• Who is involved in this process?
• How do you establish a need for a partner?
3
• We have partners for CIP, student and talent Development. We also have affiliated associations (e.g. alumni, PAACT).
• How do you maintain them given limited resources?
• How much manpower do you allocate to this process?
• Is there a rationale behind having so many partners?
• Do you have a variety of partners from different industries?
2
• Process Map• Are there specific steps to this process?• What are these steps?• What is the rationale behind these
steps?• What is the relevance of each step to
your organisation?• Do you have separate processes for
new partners and existing partners?
• Is there a process in place to systematically engage (e.g. approaching, cultivating and sustaining) partners?
1
How NJC does itSub QuestionsRoot Question
For PartnersFor Partners To bring along to partners during preliminary meetings
To bring along to partners during preliminary meetings
Example of questionsProcess DefinitionWhat is your most successful process?Describe it?Process MeasurementWhat measures do you use to track process performance?How do you measure process output?Process PerformanceWhat is the current level of performance for the process?How have quantitative results changed in the past 6, 12 months?Process StrengthsWhich parts of the process work the best? How has the process been improved and refined over time?Process Opportunities for ImprovementWhat do you see as the current problem areas for the process?What past problems did you have? How did you solve those problems?Process Enablers What steps did you go through to implement the process? What training have you provided for those staff involved in the process? Have any business practices or methods contributed to your success? Are there any factors that could inhibit the adaptation of the process
into our company?Other questions Who do you recognise as the best company in performing this process? Do you have any non-confidential documents/information/press releases
that could help me to understand how your processes work?
Don’t just learn about the best practice. Make sure you also learn about the
journey to reaching the best practice
Site visits provide a great opportunity to
compare process flow charts and understand
differences
Terms - plan the project
Completed benchmarkingproject
Start benchmarking project
Act - undertake data collection &analysis
Evaluate stage complete?
Yes
Deploy - communicate & implementbest practices
Terms stage complete?
Research - research current state
Research stagecompleted?
Deploy stage complete?
Yes
No
Evaluate - evaluate the process &outcomes
No
Act stage completed?
Yes
No
Yes
No
No
Yes
Site visit interviewing tips
Agree roles – e.g. interviewer and scribe Be on time Dress appropriately The partner should be doing most of the talking! Eye contact Lots of note taking Ask for evidence, e.g. “Could you please show me
the HR plans that result from this action plan?” Don’t rely on just verbal discussion to understand
the flow – ask for flowcharts or process maps (if not available – draw a rough diagram with them)
Stay awake…..Yes!
Step 6 – Analyse data
How does their process performance compare with our process performance?
What is the magnitude of the performance gap?
What is the nature (root cause) and variation in this performance gap?
How much will their process continue to improve?
What characteristics distinguish their process as superior?
What is innovative about their approach?
Analysis methods
Tabulations of metric & practice data Comparison matrix Data normalisation Graphs / bar charts Gap analysis Brainstorming Fishbone (Cause and Effect) diagrams Process flow charts Meetings – reaching consensus System for Classifying Practices
Normalisation
Performance data Normalisation Factor Examples Organisation revenue, sales Per employee Revenue per employee,
Sales value per employee Transaction volume Per site/account Orders per number
accounts, Calls per number installed sites
Efficiency Per transaction Time per call,
Classifying practices
Good idea (unproven) = it could have a positive impact on business performance, but requires further review/analysis.
Good practice = technique, methodology, procedure, or process that has been implemented and has improved business results for an organisation.
Best practice = a good practice that has been determined to be the best approach for many organisations, based on analysis of performance data – i.e. through benchmarking.
Chevron
Analysis helps you to ensure the practice is a good fit for your
organisation
There is usually no one golden nugget for success – it’s usually a combination and integration of many
good practices
Step 7 – Formulate recommendations
How do the project findings help us to improve our process?
Should we redesign or make modifications to our current process?
How much could our performance improve if better practices are implemented?
Can results be achieved in near term or long term? Would the best practices we identified need to be
to be modified to adapt them into our business environment?
What have we learned during the project that will allow us to improve upon the best practices?
What resources are required to implement the best practices?
Recommendations can be prioritised based on their expected impact and ease of
implementation
High impact, easyHigh impact, hard
Low impact, easyLow impact, hard
Post-it notes can be used as a way to involve the whole team in deciding where
recommendations should fit on the priority matrix
Develop a preliminary Action Plan
Description of Action Record performance
– current (c) – benchmark (b)– target (t)
Expected benefits (financial and non-financial)
Steps required to implement action Resource required
– labour (man days)– Expenses (travel and accommodation)– Capital (plant and equipment $)
Step 8 - Review project progress and TOR
Step 9 – Obtain approval to start the next stage of TRADE