Methodology:BenchmarkingOverview“Benchmarkingisasystematicandcontinuousmeasurementprocess;aprocessofcontinuouslycomparingandmeasuringanorganization’sbusinessprocesses(products,services,andpractices)againstbusinessleadersanywhereintheworldtogaininformationwhichhelptheorganizationtakeactiontoimproveitsperformance”(InternationalBenchmarkingClearinghouse).Inordertohelpclientsachieveandcontinuetheirbusinessprocessesimprovements,ArthurAndersendevelopedaBenchmarkingapproach.Thisapproachisfundamentallysynthesizedfromourworldwideprojectexperience,extensivediscussionswithexpertsfrombothinsideandoutsidethefirm,andacomprehensivereviewofpublishedliteratureandothermethodologies.Ourapproachiscurrentlyworkinginseveralorganizations.Benchmarkingstudiesmaybedividedintotwobasiccategoriesofproject:-Componentofalargerproject(e.g.aprocessimprovementorredesignproject)-Stand-aloneprojectAnotherconsiderationisthattherearesignificantdifferencesinthetypesofbenchmarkingstudies,asfollows:-Processesversusmetrics-Strategyversusoperations-Internalorganizationsversusoutsidepartners-Industrypartnersversuscross-industrypartners-BetterpracticeversusWorldClassBestPracticeAsastudy,Benchmarkingshouldprovidethefollowingunderlyingoutputs:-Measuresthatcompareperformanceforthebenchmarkedprocess,ormetric,orstrategy,oroperationsamongthetargetorganizationsandinternallevels-Adescriptionabouttheorganization’sgapinperformanceascomparedtotheseidentifiedperformancelevels-Anidentificationofwhosebestpracticesandenablersproducedtheseresultsobservedduringthestudy-Performancegoalsfortheprocessandanidentificationofareaswhereactioncanbetakentoimprovethesponsoringorganization’sperformanceMethodology:Benchmarking1Theobjectivesofthismethodologyaretoprovideabenchmarkingteamwiththecapabilitiesandskillsto:-Determinewhattobenchmark-Understandtheclientprocesses-Obtain,understandandanalyzeotherorBestPractices-Analyzecurrentandfutureperformancegaps-HelpclientstoadaptandincorporatebetterorBestPracticesQuestions1.Whowillconducttheresearch?2.Whoarethebeneficiaries(processownersorstakeholders)ofthestudy?3.Howmanycompaniesandlocationsneedtobeconsidered?4.Arethereanyparticularcompaniesthatmustbeincluded?5.Howis“best”companytobedefined?6.Howis“best”practicetobedefined?7.Arethereanyparticularexpertswhowouldbeespeciallyhelpfulonthisproject?8.Whatisthefundingavailableforthisproject?9.Doesourengagementteamhavesufficientexperienceandskilltodeliveraqualityproductforthequotedprice?10.Doestheclienthaveasufficientunderstandingofthescope,content,andproductsweintendtodeliver?11.Willourworkmeetclientneedsandexpectations?Hastheclientbeenengagedindialogueontheprojectsuccessfactorsandisthereconsensus?12.Doestheclientunderstandthatbenchmarkingisveryvaluableinproviding`directionalmeasuresofperformancebutdoesnotoftenprovideexactmeasuresofperformance?HintsThisgenericbenchmarkingmethodologyisnotmeanttobeaperformanceaidorachecklist.PractitionersshouldusetheapproachasastartingpointinundertakingaMethodology:Benchmarking2benchmarkingstudy.Theapproachisgenericinnatureandcoversdifferenttypesofbenchmarkingstudies.Accordingly,notallstepswillberelevanttoallengagements.Thefocusoftheapproachisonthebenchmarkingofprocessesasthisisthemostcommontypeofbenchmarkingproject.Asearlyaspossibleintheproject,theprojectleadershipneedstoagreeuponthecriticalsuccessfactors.Oncedefin...
