Performance Measurement and Benchmarking

Introduction

The use of performance measures is of paramount importance to all organizations wishing to improve business performance. Whilst Japanese organizations led the way in implementing effective performance measurement, many companies worldwide are now catching up as performance measurement is seen as key to effectively managing organizations. Having implemented performance measurement systems in an organization, management naturally requires that processes are continually improved. Many organizations have adopted a continuous improvement approach to running their organizations in which they continually strive for better and better performance levels. A key element to continuous improvement is Benchmarking. Without benchmarking it is we do not know how competitive we are or where we need to focus improvement efforts. Benchmarking helps organizations to balance their internal problem solving and improvement activities with the realities of the external environment. This includes other industries that perform similar functions, similar businesses that are geographically separate, and non-profit or public institutions. Under the right conditions, benchmarking can be performed by direct competitors, resulting in improved performance benefiting all stakeholders. Benchmarking not only provides awareness of what and where "best" performance lie, but more importantly, it enables the paradigm shift that internally focused teams sometimes fail to achieve. It fosters creative adoption and adaptation of "best" practices to help organizations gain and maintain a competitive advantage. One aspect that many organizations find difficult to manage is shared services. The first step in managing this and any other aspect of an organization is to measure it. Once it has been measured it can be benchmarked and improved.

Objectives

• To identify the specific difficulties of controlling shared services.
• To explain the importance and benefits of performance measurement, continuous improvement and benchmarking.
• To explain the vital role that these activities play in helping organizations perform at superior levels.
• To explain how performance measurement, continuous improvement and benchmarking relate to one another.
• To explain methods of generating and implementing effective performance metrics.
• To explain a proven 12 step process improvement methodology.
• To provide an overview of the most common tools and techniques used for continuous process improvement.
• To explain the benefits of benchmarking.
• To explain the vital role that only Benchmarking plays as part of a continuous improvement program.
• To explain in detail the benchmarking process and assist participants to manage and run their own benchmarking studies.
• To give delegates the opportunity to explore the issues raised in the course by means of examples, discussion and workshops.

Training Methodology

This is an interactive course. There will be open question and answer sessions, regular group exercises and activities, videos, case studies, and presentations on best practices. Participants will have the opportunity to share with the facilitator and other participants what works well and not so well for them, as well as work on issues from their own organizations. The online course is conducted online using MS-Teams/ClickMeeting.

Who Should Attend?

This course is aimed at all those who will be directly or indirectly involved in performance measurement, improvement, and/or benchmarking activities. This includes, for example:

• Professionals & Leaders who will be responsible for authorizing and over-seeing shared services activities within the organization.
• Those involved in the management of specific performance measurement, improvement, or benchmarking projects such as project selection, planning, monitoring, and steering of projects.
• Key people in the areas likely to be involved in affected by these activities so that they understand the importance of benchmarking and their own role in the projects.
• Technical staff who will be involved in developing benchmarking metrics and those involved in data analysis and reporting.
• Quality management/improvement personnel who need to support these activities.

Course Outline

Day 1: Performance Measurement: The Starting Point for Improvement

On day 1 we investigate the importance of measurement, how to select and implement appropriate performance measures, and the key to understanding the results.

• Course benefits
• The Need for Measurement
• Types of Measurement
• Data Use and Abuse: Using Data Constructively
• Methods of Selecting Performance Measures(including process flow charts, customer requirements)
• Developing a Framework for Measurement
• Deciding how much to Measure
• Understanding Variation: The key to understanding performance
• What histograms, run charts, and control charts tell us about performance
• The Rods Experiment

Day 2: Continuous Improvement

On day 2 we discover that performance measurement and analysis lead naturally to improvement. Today we move from measurement through measurement analysis using the control chart into the methodology of continuous improvement.

• Understanding Variation: The Range and Standard Deviation
• The Rods Experiment Part 2: Understanding the Results.
• Taking Appropriate Action on a Process: Improvement or Investigation?
• An Introduction to Control Charts: The Key to Taking Appropriate Action
• The Juran Trilogy
• How to Improve a Process: An Introduction to the 12 step Methodology
• The Power of Teamwork
• Problem and Mission Statements

Day 3: The Tools of Continuous Improvement

On day 3 we work through the improvement methodology by investigating the tools and techniques used to improve a process. Each tool is illustrated and delegates will see how they have been used in performance improvement activities.

• Understanding and Analyzing a Process: Flow Diagrams
• Identifying causes of problems, and potential solutions: Brainstorming
• Demonstrating the link between a cause and its effect: Cause-Effect diagrams
• Understanding the Process: Quantitative Display Tools (line charts, bar charts and pie charts)
• Selecting the key aspects to focus on: Pareto Analysis
• Investigating Relationships between Variables: Scatter Diagrams and Correlation
• More Advanced investigations: An Introduction to Regression

Day 4: An Introduction to Benchmarking

Today we investigate the importance of benchmarking in helping organizations improve shared service performance to be amongst the best in the industry. We learn about different types of benchmarking and how to select the appropriate type to meet a specific need. We also learn how to identify and select benchmarking projects.

• What benchmarking is and what it is not
• Why we need to benchmark
• Benefits of benchmarking
• History of benchmarking
• Methods of benchmarking (database, club, one-on-one, review) and how they relate to each other
• An overview of the benchmarking process
• How to identify benchmarking projects
• Advice on selecting your first project

Day 5: Running a Successful Benchmarking Project

On Day 5 we learn how to run a successful benchmarking project from scoping the study through to managing the participants of the study to data collection, validation, analysis, and reporting. Finally, we see how to set up effective information exchanges and Best Practice Forums that facilitate the implementation of practices that will lead to top-level performances.

• Scoping a benchmarking study:
  • What to benchmark and why
  • Objectives of the study
• Identifying and selecting benchmarking partners:
  • Internal, external, within and out-with our industry
• Planning and resource scheduling
• Gaining management support
• How to invite potential benchmarking partners to join the benchmarking study
• The Invitation Pack: What it is, why we need it, and how it's used.
• Participant meetings: Planning and running effective meetings to attain the aims of the study
• Data collection:
  • Generating clear data collection schemes
  • The Help Desk
  • Coping with late data submissions
• Data validation
• Data analysis and reporting: quantifying the gaps to drive improvement
• How to run effective Best Practice Forums
• Benchmarking project management
• Management support activities
• Independent facilitation and benchmarking clubs