Benchmarking: Making Best Practices Your Daily Practice

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Benchmarking: Making Best Practices Your Daily Practice James W. Cornell, President CBC, CTP, CM&A, CBA, CRA, CPP January 2005

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Praxiis Business Advisors Our central goal is to help private and corporate entrepreneurs make procedures for elite & focused strength, drive esteem development, and when prepared devise and execute the most productive exit through a foreordained progression plan or offer of the business.

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Praxiis Business Advisors Corporate Renewal, Growth & Transaction Advisors to Small and Mid-Market Businesses and their Stakeholders. Built up as Strategic Corporate Services in 1988. Essential workplaces are in Western NY and administrations are conveyed broadly. Partnered Professionals have scholastic accreditations including B.S. Business Management & Economics, Master of Business Administration, Ph.D. in different controls, Juris Doctor and various expert assignments.

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James W. (Jim) Cornell Founder and President of Praxiis Business Advisors 24 years as guide to $1M - $4B Clients Strategy, Turnarounds, Performance Improvement, Value Growth, Exit Planning, M&A, Government Contracting Principal in various mid-advertise turnarounds, including National security benefits firm Internationally perceived producer of designed texture structures DOD and Industrial Paint & Coatings maker Lead consultant for effective turnaround of $50M DOJ Citizenship Benefits Processing program, & $1B+ significant government contract wins (TVA, SPR) BS, Business Management & Economics, and MBA from SUNY Empire State College Governor, SUNY Empire State Federation Board of Governors Faculty, SUNY Empire State College FORUM Program Chair-Licensure Task Force Alliance of Merger and Acquisition Advisors

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Benchmarking Defined To quantify the best practices of driving organizations, and learn and adjust them for use in your business An orderly examination of at least two organizations or units of organizations to gage their execution in respect to an associate

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You Cant Improve What You Don't Measure ! (furthermore, you can't demonstrate it to your clients either)

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Where Did it Start? Xerox Corporation 20 years back Canon was "having their lunch" Higher quality machines, bring down value Embarked on an efficient crusade Reverse designed items Studied contenders Studied an extensive variety of firms in different enterprises

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A Discipline Emerged Malcolm Baldrige National Quality Award fused it an a paradigm Many multi-step formulas developed, all worked around basics.. In "Benchmarking" by Camp, strides are Planning Analysis Integration Action Maturity American Productivity & Quality Center Planning Data accumulation Analysis Adapting & Improving

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Two Types of Benchmarking "Metrics" give numerical gauges against which a customer's own particular procedures can be looked at. Metric benchmarks are of the frame: Finished-item first-pass yield of 97% Scrap/improve under 1% of offers Cycle time under 25 hours Customer lead times under 20 days Productivity levels of $150,000 or more per representative Plant-level ROA superior to anything 15% These measurements are generally decided by means of a point by point and precisely examined study or meetings

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It' All About the Data!

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Well, Maybe Not Always… …

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Two Types of Benchmarking "Process Benchmarking" is by and large more elevated amount and less numbers-escalated than measurements. Exhibit how beat performing organizations achieve the particular procedure being referred to. Takes type of research, studies/meetings, and site visits. By recognizing how others play out the same practical undertaking or goal, firms pick up knowledge and thoughts they may not generally accomplish. A genuine esteem included element of benchmarking Benefits of process benchmarking are acknowledged while seeking after a procedure of changed procedures – making stamped enhancements in profitability, expenses, and incomes

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Best Practices Tactics and techniques utilized by exceedingly respected organizations Process benchmarking is especially helpful to create BP, and our concentrate today Fundamental apparatus for driving change in contemporary associations

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Why Benchmark? At the point when done well, benchmarking unmistakably uncovers holes between the execution of the benchmarker and that of a "best practices" pioneer, and that prompts to creating reasonable upper hand

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Why Don't More Businesses Do Traditional Multi-step Benchmarking? Takes too long frequently six to nine months Its expensive The lessons educated might get meant practice and change Reports that get rack space, not activity Cumbersome procedure to finish Limits Flexibility - methods arranged

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Put Another Way… .. "Its like the mating of pandas: occasional, awkward and frequently ineffectual" Chris Bogan, President and CEO of Benchmarking and Consulting

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How To Get It How To Evaluate It How to Use It

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Creative Benchmarking* Start from the clients perspective List every progression of the clients purchasing knowledge Next, figure out which considers most impact clients impression of significant worth at every progression Finally, recognize organizations that exceed expectations at every element – without respect to their industry! * (got from the work of Dawn Iacobucci and Christie Nordhielm, Kellogg Graduate School of Management)

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Entering, Occupying and Exiting a Hotel Room Enter Lobby Physical Environment Functional, practical Southwest Airlines, the Gap, Target, Sam's Club Attractive, sumptuous Virgin Atlantic, Lexus auto dealerships Greeting Friendly, easygoing Wal-Mart, Club Med Cordial, proficient Nordstrom, Ritz-Carlton Discrete Alcoholics Anonymous

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Entering, Occupying and Exiting a Hotel Room Check-In Fast effective administration, no lines Express walkways in general stores, Hertz Guaranteed most extreme hold up Bennigans Lunch Express Pleasant Queue encounter utilizing pagers Cheesecake Factory Bellboy Carries Luggage Attentive Employees Benihana Japanese Restaurants Festive, casual impression Carnival Cruise Lines, Southwest Sedate, formal impression Management counseling firms, Tiffany

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Entering, Occupying and Exiting a Hotel Room Use Shower Good shower outline Professional games groups Reliable pipes upkeep SeaWorld Get Advice on Restaurants Intelligent specialists who know eateries Electronic Yahoo! Representatives Travel operators Agents who know their clients Nordstrom

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Entering, Occupying and Exiting a Hotel Room Breakfast Room benefit sustenance arrives instantly, at fitting temperature Delivery pizzerias Courteous conveyance work force UPS Check-out Quick, consistent flight, TV checkout Sega youngsters' recreations Intuits TurboTax

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Entering, Occupying and Exiting a Hotel Room Other regions for inns to search for best practices… . Pick Hotel Make Reservation Travel to Hotel Park Rental Car Walk to Hotel Go to Room Look Around Room Require Assistance of an inn worker Call Home Use Business Equipment Workout Retrieve Car Head to Airport Follow-up

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Fast-Cycle Benchmarking Less intricate than conventional multi-step More strategic What do solid trucks and pizza have in like manner? Helpful to Identify particular operation issues or openings Rather than basically duplicate from different firms, utilize the information to draw valuable analogies and empower era of imaginative thoughts Mobil and the Penske race group.. corner stores aren't race groups, however the strategies for fast turnaround prompted to the Speedpass

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Figure Out What You Are Looking For Replicate and acquire it, or Look for practices that can start thoughts, don't simply recreate what you discover Figure out where benchmarking fits in your toolchest, and settle on an educated choice about the result you are truly after

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Benchmark Companies Roughly at Your Own Level College material science before secondary school math doesn't bode well… Forget the world class organization (unless you are one!)..find a firm of comparative size and circumstance as yours Benchmark organizations with comparative business needs Common concerns advance a more gainful trade or transportability of the data learned

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Study the Entire System Rather Than One Technique Avoid careless, shallow looks Mission explanations, qualities and desires of representatives might be communicated as an archive or promise, yet The genuine esteem is in how the firm instills the significance in representatives, and how they set it to function in their day by day hones High execution frameworks just work when each and every individual in the association is completely dedicated

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When Benchmarking a System, Adapt What You Find, Don't Just Copy It Conditions are never indistinguishable You can get basic factors and apply them … Create a framework – an exhaustive arrangement of strengthening practices that are in charge of accomplishment

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Benchmark Subjective Measures and Qualities Running a business today is significantly to a greater degree an inventive procedure than in the past Quantitative measures are helpful, yet not sweeping Using an innovative procedure, benchmarking is a directional apparatus, not only a layout

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Remember Why You Are Doing This Don't get wrapped around the pivot Don't mistake measures for really conveying an outcome from the exertion Focus on the standards most appropriate to your business It is not an end in itself, it is but rather a necessary chore

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Step-by-Step - 1 You are the Process Owner Start by Working Alone List scratch thoughts and best practices you trust your association ought to consider Brainstorm List and rate your thoughts in respect to your associations mission and methodology Identify time allotments inside which every thought and practice could sensibly be actualized

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Step-by-Step - 2 Share your examination with other