Enhanced Benchmarking - Starr & Associatesstarrandassociatesllc.com/wp-content/uploads/2018/... · Process Maps & Opportuni6es 11/15 – CIM Planning Mtg 2 10/25– CIM Planning Checkpoint

BenchmarkingEnhanced

Technique

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Enhanced Benchmarking Technique

Starr and Associates

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The Need Executive leaders and their respective staff often find it difficult to allocate the appropriate time and resources to understanding where opportunities for strategic or large scale operational improvements exist within their organizations. It is difficult for managers to assess the relative effectiveness of an organization’s value chain due to a lack of clear comparative points. Comparative data points are often hard to identify and when they are identified, they are equally as difficult to interpret. When conducted properly, benchmarking allows managers to develop comparative insights that spur transformative thought often leading to enhanced organizational performance.

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BenchmarkingEnhanced

Technique

FUNDAMENTALS To identify comparative points of relevance, it is necessary to understand certain characteristics of your business operations, its customers and products. Commonalities between organizations can include product, organizational structure, scale, size, delivery model, transaction volume, and customer segments among others. It is important to know which parameters are relevant to the benchmarking analysis at hand. For instance, benchmarking the average transaction times of a high-end HVAC installation company may have absolutely no synergies whatsoever with a similarly sized, but price differentiated firm in the same industry. However, a sophisticated biomedical air filtration installation firm of similar size may provide more appropriate comparisons. Understanding the unique nuances of your business and what differentiates it is what makes Starr & Associates’ approach to benchmarking reliable and effective. Our approach to benchmarking is disciplined and effective.

Steps include:

AssessCurrent State Assessment. We work to understand your business and its performance drivers.

ID Benchmark

Benchmarking Participant Identification. We determine the appropriate sample pool and why each sample was included. This could be a part of a company, multiple companies, an industry, a sector or any portion of an industry or sector.

Compare

Comparative Analysis. We quantitatively and qualitatively compare the selected sample(s) respectively and collectively to the focused area of your organization to identify performance enhancement opportunities.

Plan

Strategic Prognosis. We develop a strategic roadmap to enhance the performance of your organization based on the comparative analysis when opportunities are identified.

Starr and Associates3

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When executed effectively, benchmarking provides managers with the insights needed to drive targeted strategic and transformational initiatives that have significant impact on the company performance. Resources can be aligned to focus on portions of the organization that will yield the greatest benefit to overall performance, while not disrupting the support of day-to-day operations of the business.

Approach Discussion

Phase 1 Current State Assessment

Starr & Associates’ business scientists are experts at understanding the operations and performance of your organization. We take a hands-on approach, leveraging all the means at our disposal to comprehend your specific business model and how to optimize it. Our broad set of data collection tools enable us to understand, mea-sure and provide insights into the areas of opportunity within your value chain. Our information collection tool kit includes: direct observation, time/motion analysis, operational data intelligence, stakeholder interviews, surveys, internal polling and internal focus group facilitation. Once we’ve collected the necessary information, we work tirelessly to develop a concise and accurate depiction of your business model.

BENEFITS

Subject Canvas

Accounting Services

Auditors

IT Management

Sponsors

CROs

ClinicsClinical

Coordinators

Clinical Investigators

Research Reporting

Quality Assurance

Data Managers

Regulatory/ Legal Experts

Data Management

Recruitment of Patients

Research Administration &

Op Ex

SOPs & Processes

Data Management

Advertising/ MarketingClinical Operations Commercially

Funded Research

Grant Funding

Clinic/Medical Practices

Regulatory Assistance

Quality Audits

Administrative Efficiency (through

specialization)

Trial Recruitment

Process Documentation Development

Proprietary Database

Sponsor/ ICRP

Grant Screeners/

WritersPaid Media

Website/ Social Media

"Network"/ Word-of-mouth

In House Clinic Labor

CRO/ ICRP

Participant Recruitment


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Phase 2 Benchmarking Participant Identification

The key to a meaningful benchmarking exercise is largely contingent upon the benchmarks included in the study. Unfortunately, selecting the best benchmark comparisons is not as simple as choosing intra-industry competitors and providers of like products or services. Over simplification of the selection process can lead to missed insights, erroneous conclusions and wasted effort.

Starr & Associates uses an in-depth, critical and thoughtful methodology in selecting the appropriate benchmarks. A deep analysis of synergies, practices and performance of benchmark organizations allows our business scientists to optimize the sample of benchmarks around the pertinent piece(s) of your value chain. Considerations include: product/service complexity, product/service delivery model, customer segment similarities, promotion alignment, delivery channel similarities, complexity in product realization processes and cost structure.

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Phase 3 Comparative Analysis

To truly understand key comparative differences between benchmarks, it requires the experience, training and operational subject matter expertise that allows for positive identification of significant performance differences. The operational and financial expertise of our business scientists allows for a deep structural understanding of these differences. This understanding allows our practitioners to discern whether performance variation is a result of execution differences or merely a result of industry noise. We apply technological, quantitative and operational knowledge to understand the drivers of performance trends. We then identify the benchmarks that demonstrate best practices and greater proficiency in execution.

Benchmarking Analysis

Cost Structure Analysis

Product Complexity Analysis

Geographic Sales Analysis

Prod

uct C

ompl

exity

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re

Employees (thousands)

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Labor Marketing

Company 1

OPEX

LaborMarketingOPEX

Profit

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Sample 1 Sample 2 Sample 3 Benchmark Subject

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3.5ComparableOrganizations

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Company 2Company 3

Subject0 50

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Phase 4 Strategic Prognosis

Once a comparative analysis is performed and operational drivers are identified, our strategists investigate further to develop and test hypotheses around how to enhance your organization’s performance through adoption of best practices. Operational know-how and real world experience is required to determine if practices are transferable. In the event they are not, our strategists dig even deeper to understand what attributes about the practice are responsible for the superior performance. These attributes are then tweaked and applied to your organization through collaboration and disciplined implementation.

PEPROGRAMPROGRESS

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DCV&TCTMAsConductedonallproductsandinallregions.ChangesassociatedwiththeTMAswillbeimplementedJan2017

LaunchedIngressMi6ga6on(In-house)

DCVWorkshop6/28-6/30BTRProcessimprovementdeepdivetoidenNfysoluNonsthatincreasecancellaNonratesandreducepreventabletruckrolls

DCVAutoma6onAutomaNngtheprocessofconverNngaTCtoDCVSRO-Whenthehomecerttestisgreen,thentheSCRtoolautomaNcallyconvertstheTCtoaDCV

3/17:SCRRelease4DCVAutomaNoncapability

7/6:UATTes6ngSCRRelease6AutomaNontoconvertAllBlackworkorderstoDTVs

DTVPilotStarted8/8

PEImpactIni6a6veListWorkedtovalidateandtracknon-PEiniNaNvesacrossallfuncNonalareasexpecNngtohavetransacNonalimpactstoCIRand/orTCTRmetrics

Communica6onRou6nes6/28-6/30BTREstablishedsteeringandleadershipcommiWeerouNnes

5/18:SCRRelease5BringworkordersbackintoSCRtool;manuallycreateDCV

Jul Feb Mar Apr May Jun Jan Aug Sep

2016markedthedevelopmentofastrongframeworkforthePerformanceExcellenceProgram.InpartnershipwithSCRtheprogramemployedastrategytofocusonthecriNcalfewprojectsprovidingthegreatestgrowthpotenNalandend-to-endoperaNonalbenefit.YTDtheprogramhasachieved~300TCTRreducNonsandisontracktoexceedtheyearlytarget.TheRoadtoExcellence:

Opportuni6esexisttopartnerwithSCRtoiden6fyandimplementimprovementini6a6vessuppor6ngPerformanceExcellence.

Benefit

High Low Med

High

Low

Med

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Low

Med

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# ImprovementIdea

1 Collaboration – Opportunities to collaborate more across teams

2 Customer Contact – Ideas for improving the customer contact process

3 Data – Requests for specific data access

4 Education – Requests for Training or Troubleshooting Resources

5 Targeting – Ideas that help target specific cancel/conversion situations

6 Performance Management Initiatives

Effort

TACTICALINITIATIVESRANKINGOFKEYOPPORTUNITIES

18WeekProgramCalendar

September October November December January

9/19 9/26 10/3 10/10 10/17 10/24 10/31 11/7 11/14 11/21 11/28 12/5 12/12 12/19 12/26 1/2 1/9 1/16

KeyMeeNngs

KeyMilestones

AcNvityWorkstream

Strategic

OperaNonal

TacNcal

DesignCIMApproach

Deliver&IntegrateCIMStrategy

CIMPLAN(PRELIMINARY)

StakeholderInterviews1

ReviewofCoreProcessesandBusiness

AnalysisofCIMEvents

FuncNonalTeamObservaNons/Interviews

ProcessMapping,CapabilityAssessment,OpportunityAnalysis

PerformanceModeling

StakeholderInterviews2

SoluNonAnalysis–MiNgaNonStrategy

SoluNonAnalysis–MiNgaNonOperaNngModel

Benefit/EffortAnalysis

ResourceRequirements/ToolEnhancements

ProcessMa

AssessResources/Systems/Tools

ConductTraining

ProgramStrategy&PerformanceRequirements

PerformanceBenchmarking

LaunchPlanning

EvaluateCustomerOperaNonsReadiness

ReporNngDev

10/6-KPIs/Milestones

10/6–CIMPlanningMtg

11/15–Requirements/ProcessMaps&Opportuni6es

11/15–CIMPlanningMtg2

10/25–CIMPlanningCheckpoint

12/6–Predic6veModels/Impact

12/19–Opera6ngModel,CIMPlaybook



1/2–1/16Training/CIMPilot/FullLaunch

Revise/DevelopProcessDocuments

IntegrateCommunicaNonChannels

Control&Improve

KickoffWeeklyCIMReadinessMee6ngs

DesignPilotandTestPlan

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Case Study A global manufacturer was faced with a significant dilemma as it pertained to one of their major product lines. The process used to manufacture their product that long yielded a superior quality variant had suddenly become a costly burden to the company. Foreign competitors had closed the product quality gap while still using a less costly production methodology. The company found itself suddenly priced out of their market segment due to substitution. Managers of the firm were faced with the question of abandoning the market all together or pivoting to adjacent products. What were the alternatives?

Starr & Associates was engaged to identify benchmarks based upon like skills, competencies, capabilities and capital assets while keying in on markets that showed signs of long term growth and relatively low rivalry. Our business scientists began with a deep dive into the company organization to understand its value chain, unique assets and key skills/competencies. A combination of direct observation and stakeholder interviews were used to understand the key drivers of value for the company.

Once key value drivers were identified, our business scientists researched the business landscape for opportunities that aligned with these drivers. Products were identified that were produced using similar value chains and assets as the client. Those products were then vetted for alignment with the market conditions outlined by the company’s managers: long-term growth and viability. The underlying financial structure of their industries and markets were examined and detailed to management in a way that allowed for intelligent decisions to be made.

The list of viable product alternatives was quickly narrowed based upon penetration level of effort required. Capital investment was a significant constraint for the company, so alternatives with financial viability and low capital investment were prioritized as considerations. To determine the capital investment required, our strategists developed a gap summary between the existing value chain of the company and the hypothetical value chain for any potential new products. This analysis included a time, resource and capital deployment roadmap that gave managers an idea of the level of effort required to migrate to each option. Ultimately, the managers could determine that there were viable products that fit their capital constraints while breathing new life into their business.

For more details, please feel free to contact us:

Starr and Associates [email protected]