Benchmarking by best practices

Paulette Dunn-Smith, Contributor

WHAT IS it that makes some companies do very well, while others struggle to make it?

Several factors are involved in answering this question, but one of the practices which successful companies use to improve their performance and improve workforce productivity is benchmarking.

Put simply, benchmarking is the art of finding out in a straightforward way how others go about organising and implementing the same things that you do or plan to do.

When something better is found, it is adopted or adapted, used or improved upon, enabling smoother and better business processes.

All organisations, even those that are outstanding, can and should strive to do better.

This is the underlying principle of benchmarking - continuously improving products and services to what is known today as total quality management (TQM).

The logic behind TQM is that the best place to look for ideas and to improve our products and services is in organisations that are achieving extraordinary results.

Xerox Corporation in the United States is credited with originating the practice of benchmarking by focusing on its key business processes rather than the finished product itself.

Cooperative efforts

The company shared its approach and experience with other industries, and this cooperative effort led to improvements in all the companies that were initially involved.

Within a decade of its introduction, benchmarking had distinguished itself as an important tool for performance improvement in corporate America.

Public companies quickly joined in, and very soon, benchmarking projects emerged, focusing primarily on customer satisfaction, employee training and development, and one-stop business registration.

Steps in benchmarking

Many companies in Jamaica are pursuing benchmarking in an effort to improve quality. The following seven steps can be used by companies who want to benchmark.

1. Decide what to benchmark

Look for where bottlenecks occur; the most complaints are made; where backlogs are most prevalent; which functions contribute to an unfavourable image; which functions consume the greatest portions of the organisation's resources. Benchmarking in these areas is likely to bring the greatest benefits.

2. Study the process in your own organisation

Put together a team to study in detail the processes in your organisation. The team should be familiar with all aspects of the operation and fully understand the process from end to end. A flow chart with the process will help to define the details.

3. Identify benchmarking partners

Look for partners or companies that have similar processes. Seek out the best and study how they function and operate as a business. This takes time, but eventually you will have organisations to use as models in moving forward.

4. Gather information

Collect information through publications, research, questionnaires, and surveys. Be prepared to share your own company's information with other companies. Respect their perspective.

5. Analyse the information

Having collected the information, analyse the data by looking at what others have or do, against what you have or what you do. Are there gaps between what you do and what the others do? This is your performance gap. That bit of information is extremely important and you will now seek avenues to improve performance in these areas (avoid copying the other company's process). Seek to improve upon yours.

6. Implement for effect

Having determined the performance gap, make suggestions for improvements. What changes would bring about the best results? What would be the least disruptive? What is the most economical? Which would encounter the least resistance?

Having determined the best recommendations, implement for effect. This may be in phases, may require re-training of staff, new equipment and so on. Make the transition as smooth as possible.

7. Monitor results and take further action as needed.

The prospects for successful implementation of the process and the results of the implementation are carefully monitored and adjustments made where necessary.

Keys to success

There is no way to guarantee the success of a benchmarking project, but there are some keys to its successful implementation.

1. Understand the process and stick to the core elements.

2. Involve the right people early in the plan.

3. Find an individual to "champion" the cause.

4. Commit adequate resources (financial and human) to the project.

Paulette Dunn-Smith is an international trainer and workforce development expert. She is the executive director, Dunn, Pierre, Barnett & Associates Ltd & chairman, Caribbean Career and Professional Development Institute. Contact her at pdunn@dpbglobal.com or www.dpbglobal.com.