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Benchmarking

Benchmarking. Contents:. A brief definition of benchmarking Its application in the commercial world How the technique can be applied to the public sector The main stages in a bench-marking project Finally, we’ll invite you to design a simple bench-marking exercise for your own library.

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Benchmarking

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  1. Benchmarking

  2. Contents: • A brief definition of benchmarking • Its application in the commercial world • How the technique can be applied to the public sector • The main stages in a bench-marking project • Finally, we’ll invite you to design a simple bench-marking exercise for your own library.

  3. What is “benchmarking”? Some basic definitions: Benchmark: a reference standard against which other things can be compared. Benchmarking:the continuous process of identifying, understanding and adapting practices from other organisations to improve the performance of your own organisation. The process involves continuously assessing the quality of goods or services against standards of best-practice, often as part of a commitment to total quality management (TQM). Like many other quality tools, bench-marking was devised by Japanese industrialists in the 1950’s to identify and copy “best practice” in western manufacturing.

  4. Commercial uses of bench-marking Commercial bodies use bench-marking to compare standards of performance at various levels: • Internal: comparing how different departments within the same body (e.g. finance and marketing) perform. • External: comparing performance with other organisations, either those catering for the same market, or fulfilling similar functions in a different market. It may however be very hard to get performance figures from competitors. • Global: may involve comparison with organisations with completely different functions, but again the object remains the identification and assessment of best practice. Such activities are essentially about gaining a competitive edge, in terms of cost-cutting, value for money, supply chains and building up market share.

  5. Examples of bench-marking in the public sector: • Since the 1980’s, bench-marking has become more common in the public sector, with the rise of: • Competitive tendering • Emphasis on measuring performance • Downward pressure on funding • Management models moving closer to the commercial sector • More focus on customer satisfaction (I.e. outputs, rather than processes). • Public services, like libraries and leisure centres, can use bench-marking to explore the quality of services they offer. Performance indicators chosen must be from the viewpoint of their customers. • Some advocate bench-marking as an aid to controlling cost while preserving quality in the provision of public services, by establishing closer links between resources and outputs.

  6. Quality in libraries • For many librarians and information professional techniques that emphasise profit and performance are quite alien and against the grain of traditions of public service. • Quality improvement programmes were often seen as paper exercises, which librarians had to complete to show willingness to change, although in practice they often made little difference. • In the last decade however, with public libraries operating in the era of the Citizens’ Charter and Charter Marks, and academic libraries obliged to justify their funding, both have had little option but to engage more fully in quality control programmes.

  7. Level of bench-marks Benchmarks can be set to differing levels, such as: • Level 1: provide a “library.” This could be anything which reaches the dictionary definition (maybe just a collection of books with some public access) • Level 2: provide an appropriate library: this suggests at least some thought about the function of the library e.g. a healthcare library should include key journals and access to Medline • Level 3: provide a quality library that will meet the users’ needs: this may mean tailoring provision to preferences like opening hours, training in using Medline, stocking of the journals that most users wish to consult.

  8. Steps in bench-marking • Some guides suggest twelve, fifteen or even more “stages” in a full bench-marking exercise. • These may include detailed planning phases and topic selection • For the purposes of this exercise, a more basic model with four key stages will suffice.

  9. Steps in bench-marking • Planning for bench-marking. • Set targets of the quality of various services • Measuring: audit or bench-mark the quality of that service using a check-list (this may include an cost-benefit analysis) • Action plan: compare the bench-marks with the targets and produce an action plan to bridge deficits.

  10. Step 1: Planning for Bench-marking You may choose to have a panel rather than an individual, to introduce an element of objectivity. The panel should have sufficient gravity to command respect, but not so many members that it becomes unwieldy. You should consult with all the main parties involved, including those who will undergo bench-marking and the customers of the service. You should define the topics for bench-marking and processes to be used. This may involve clarifying who your customers are and which outputs you wish to bench-mark.

  11. Step 2: Set targets of the quality of various services You can set targets to assess quality across many areas: • Design and quality of facilities • Staffing (levels, expertise) • Health and safety (probably more an organisation-wide rather than a departmental issue, but may include issues like cleanliness) • Accessibility (opening hours, disabled access) • Use of services • Marketing You begin with standards in key processes the organisation performs, and which are critical success factors in running it effectively. Targets may be derived from comparisons with other organisations or accepted standards for “best practice” from the wider literature.

  12. Step 3: Measuring • This involves data collection and analysis, culminating in comparison with external standards or “best-practice.” • Some data can be gleaned from routine statistics already gathered as part of daily activity (e.g. book issue and return). Some data may need specific prospective collection (e.g. a survey of customer satisfaction with specific services). • In some cases, especially if there is a research component, it may involve a site visit or interviews with stakeholders.

  13. Step 4: Action plan • This involves addressing gaps between “best practice” (what the organisation should be doing) and current practice (what it is doing). • An early (and crucial step) may be dissemination of the conclusions to all who will be involved in the action plan. • It may lead to an iterative process of repeated review to see if the action plan is working at closing that gap.

  14. Problems along the way… Unfortunately, benchmarking exercises do not always run smoothly. Forewarned is forearmed and problems for which you might want to plan ahead include: • Lack of support at senior management level • Uncertainty about which processes to prioritise for bench-marking. • Justifying the cost (in terms of money and staff time) that the exercise will consume.

  15. ….and some other issues • Bench-marking often involves teamwork and developing a consensus about what the organisation can do and what it should do • Because the process may involve disclosure of quite sensitive details of performance, you may need to establish ground rules about confidentiality. • Bench-marking will have costs in terms of staff and time, but well planned bench-marking exercises can show a good return on investment in terms of improvements in both efficiency and economy. • To be successful you may need to make sure you have escaped from a “blame culture” i.e. your organisation’s response to mistakes is: What lessons can we learn from next time? NOT: Whose fault was it?

  16. What we have covered • Simple definitions of bench-marking • Some applications to both commercial and public sectors • The main stages in a bench-marking exercise.

  17. Further reading: • Bendell, T. (1997) Benchmarking for competitive advantage. 2nd rev ed. London: Pitman. • Balm, G. (1992) Bench-marking: a practitioner’s guide for becoming and staying the best of the best. Schaumburg (Illinois): QPMA Press.  • Brockman, J. (Ed) (1997) Quality Management and Bench-marking in the Information Sector. London: Bowker Saur. • Brophy, P. (2006) Measuring library performance: principles and techniques. London: Facet Publishing.

  18. Points to ponder: • Is “customer satisfaction” the ultimate criteria of success, even if you work in an area without competitors? • What are the relative merits of bench-marking yourself against organisations delivering the same services as yours and those working in other areas? • What are the best ways to share benchmarking plans and the outcomes across your organisation?

  19. That’s all folks! That’s all folks!

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