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Benchmarking: A powerful tool of Business Intelligence for continuous organizational improvement �

Thanos Kriemadis, Ph.D., M.B.A., M.A.

Professor

President of the Innovation and Entrepreneurship Committee

Assessor of the EFQM Excellence Award (European Foundation for Quality Management)

Assessor of the Quality Management System ISO 9001:2008

Department of Management Science and Technology

University of Peloponnese

TEL: 0030-6977-234055

EMAIL: thanosk@uop.gr

The 15^TH HSSS NATIONAL & INTERNATIONAL CONFERENCE

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DEFINITIONS
BENEFITS
HOW TO IDENTIFY BECHMARKS
BENCHMARKING PROCESS
CASE STUDY – BANKING SECTOR – EFQM EXCELLENCE AWARD

AGENDA

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Definitions

Benchmarking is the continuous process of comparing an organizations’s strategy, products/services, and processes with those of best-in-class organizations in order to learn how they achieved excellence (high performance levels) and then using this information to develop targets, strategies, and implementation to improve (Swift, Ross and Omachonu, 1998).

Benchmarking involves setting up partnerships that allow both parties to learn from one another and improve (Pyzdek, 2003).

Benchmarking involves the comparison of your company’s performance against that of other companies in your industry, or against best-in-class, or against standards and certification criteria in order to identify opportunities for improvement and develop your targets, strategies and implementation (Mariotti and Glackin, 2014).

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Benefits

Creates a culture that values continuous improvement to achieve excellence.
Enhancing creativity by devaluing the not-invented-here syndrome.
Shifting the corporate mind-set from relative complacency to a strong sense of urgency for ongoing improvement.
Prioritizing the areas that need improvement.
Increasing sensitivity to changes in the external environment (Pysdek, 2003).
Defines specific gaps in performance and select the processes to improve.
Sets realistic, rigorous new performance targets and action plans for improvement.
Provides a basis for human resource training.
The company saves money and profits are higher ((Swift, Ross, and Omachonu, 1998).

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How to identify Benchmarks

Databases: EFQM, National Institute of Standards and Technology’s MBNQA, Houston based AP&QC, Federal Quality Institute, MECON-PEER for Hospitals, Competitiveness Forum, NACUBO for Universities, United States Navy’s best manufacturing practices, big companies (AT&T), Occupational safety and Health Administration.

Cooperative Sharing Agreements: b/t companies (competitors/industry) is another source of best-in-class identification, e.g. Xerox, Motorola and Boeing joined forces to standardize benchmarking procedures in training.

Out-of-Industry companies (e.g. Pharmaceuticals, knowledgeable in Quality Assurance, batch traceability, and production record keeping).

(Swift, Ross, and Omachonu, 1998).

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The Benchmarking Process

Planning

1.1. Identify what is to be benchmarked (the process chosen should be one that will have a major impact on the success of the business).

1.2. Identify comparative companies (the best-in-class not the average firm).

1.3 Determine data collection method and collect data.

2. Analysis

2.1. Determine current performance gap.

2.2. Project future performance levels.

3. Integration

3.1. Communicate benchmarking findings and gain acceptance.

3.2. Determine targets and strategies.

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The Benchmarking Process

4. Action

4.1. Develop Action Plans.

4.2. Implementation and monitor progress.

5. Maturity

5.1. Practices fully integrated into process.

5.2. Continuous improvement of the Benchmarking process

(Camp, 1989).

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Case Study - Banking Sector – EFQM Excellence Award

INDICATOR – YEAR (Company, Comparative data, Target, Strategy, Action Plan – Timetable - Budget)

Customer Satisfaction

Range of products

Quality of Service

After sales service

Profitability

Empowerment

Motivation at work

Rewards

Professional development

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Thank you for your attention !!!!