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Effective Business Process Benchmarking Strategies for Improved Organizational Performance

This guide outlines essential strategies for effective business process and workflow benchmarking. It covers the four phases of benchmarking projects—planning, identification, data collection, and analysis—highlighting the significance of mapping goals to organizational processes. Key techniques like control charts and cause-effect diagrams are discussed, emphasizing the importance of understanding best practices and adaptation. With a focus on creativity and cross-industry comparison, this resource provides actionable insights for organizations aiming to enhance their performance through effective benchmarking.

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Effective Business Process Benchmarking Strategies for Improved Organizational Performance

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  1. CIS591S: Business Process and Workflow Analysis Dr. Raghu Santanam Department of Information Systems Business Process Analysis

  2. Agenda • Benchmarking Process and Examples • Tools and techniques • Code of conduct • Module Summary

  3. Benchmarking • The process of identifying, understanding, and adapting outstanding practices and processes from organizations anywhere in the world to help your organization improve its performance.—American Productivity & Quality Center

  4. When…? • Need to know • Goals and priorities • Key business processes • Map organization goals to process and functional goals • Process models

  5. Benchmarking Process • Four phases to the project • Planning • Identification, documentation and scope • Data Collection • Measures and approach • Benchmark partners, competitors • Analysis • Identify gaps and root causes • Characteristics of best practices • Adaptation • Assess candidate practices • Develop implementation strategy • Monitor

  6. Source: International Benchmarking Clearing house

  7. Who is involved…?

  8. Analysis Tools and Techniques • Control Charts • Cause-effect diagrams (Ishikawa) • Pareto diagrams • Radar/spider chart • Scatter plots

  9. Effective benchmarking • Numbers tell only part of the story • Problems may not be in process! • Benchmarking should focus on “How” • Do not stop with the numbers • Facility tours • Process walkthrough • Interviews and surveys

  10. Intel way… • Benchmarking surveys • Followed by “three or four-hour teleconferences or site visits and ask how they do it.” Steve Viera, Corporate Purchasing (Source: “Is your benchmarking doing the right work?” Harvard Management Update, 2003)

  11. Code of conduct • Legality • Disclosure of trade secrets • Price-fixing or collusion • Dissemination • Partnership • Exchange is two-way • Use • Limit scope of use of information

  12. Creativity • Compare across industries • Each step in a process • Find analogous steps in other industries • Yield management - Walmart, airlines • Pricing – airlines, telecom, software • Tailored service – luxury hotels and retailers • Logistics – UPS, Fedex • Failure recovery – airlines, emergency responders

  13. Further reading • Robert Camp, Business Process Benchmarking: Finding and Implementing Best Practices, ASQC Quality Press, Milwaukee. • APQC web site resources • http://www.apqc.org/portal/apqc/site/generic2?path=/site/metrics/free_resources.jhtml

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