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Workshop October 2015

Workshop October 2015. Stage 3 Acquire (acquire best practices)

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Page 1: Workshop October 2015. Stage 3 Acquire (acquire best practices)

WorkshopOctober 2015

Page 2: Workshop October 2015. Stage 3 Acquire (acquire best practices)

Stage 3

Acquire (acquire best practices)

Page 3: Workshop October 2015. Stage 3 Acquire (acquire best practices)

9. Obtain approval to start the next stage of TRADE

1. Establish criteria for selecting benchmarking partners 2. Select potential benchmarking partners3. Invite and acquire benchmarking partners

4. Prepare for data collection5. Collect and store data 6. Analyse data

7. Formulate recommendations8. Review project progress and TOR

Page 4: Workshop October 2015. Stage 3 Acquire (acquire best practices)

Step 1 – Establish criteria for selecting benchmarking

partners What processes/best practices does the partner need to

have? What level of performance does the partner need to have

achieved? How will we know the partner has good to best practices?

How reliable is the evidence? Is the location of the partner important? Which organisations are more likely to participate? What should the partner’s organisation profile be? Is it

important? Are we including competitors? If so, what data/information is

publically available?

For projects where you are focussing on a number of sub-processes you may wish to have different criteria and

therefore different partners for each sub-process

Page 5: Workshop October 2015. Stage 3 Acquire (acquire best practices)

Example of a Partner Selection Table – Simple Version

PARTNER SELECTION TABLE 1 (PST1) - SIMPLE VERSION"Best Practice" Selection Criteria (What best practices

or performance level do your benchmarking partners need to have in order for you to want to

learn from them?)

Rationale for "Best Practice" Selection

Criteria (Why is this criteria

important?)

Names of organisations to

consider as potential partners

Proposed method to learn from benchmarking partner (e.g. site visit, iternet research, survey, phone/skype call)

"Other" Selection Criteria (Is there any other criteria that is important when selecting a benchmarking partner such as location, industry, organisational size, culture?)

Rationale for "Other" Selection Criteria (Why

is this criteria important?)

Page 6: Workshop October 2015. Stage 3 Acquire (acquire best practices)

Example of a Partner Selection Table – Detailed Version

Page 7: Workshop October 2015. Stage 3 Acquire (acquire best practices)

Pre-screening Criteria can be useful as an initial funnel to identify potential benchmarking partners

The partner must have at least a performance level of X for the benchmarking area of focus

The partner must be certified to ISO XXXXX standard

The partner must be within X country The partner must have at least X

employees

Page 8: Workshop October 2015. Stage 3 Acquire (acquire best practices)

PARTNER SELECTION (PS)Name of Potential Benchmarking Partner?Address of partner?Name of contact person at partner if known?Describe the partners’ best practice, if knownEvidence that the partner has good to best practices which are related to the benchmarking area of focus (e.g. evidence from brainstorming, questionnaire, expert opinion?)

What level of performance has the partner achieved, if known?Other information on the partner?

Weighting % Total

0

Description of Criteria Rating System Weighting % TotalRelationship between benchmarking area of focus and partner’s best practice

Strong = 4, Moderate = 2, Weak/Unknown = 0

0

What level of performance has the partner achieved?

World Class/Outstanding = 4, Good/Above Average = 2, Poor/Unknown = 0

0

How recent is the evidence? 0

Location of partner 0

Likelihood to participate? 0

Number of Employees?Industrial Sector?Competitor?

Total Score 0

Description of Criteria Score (Pass = 1, Fail = 0)

A.

Pre-Screening Criteria (Pre-Screening criteria that need to be met that are specific to the project)

Final TotalPartner Selection Criteria

Score

B. C.

Very reliable = 4, Moderately reliable = 2, Unknown = 0

Evidence of good to best practices Is the evidence from multiple sources?

Multiple sources = 4, Two sources = 2, One source = 0

0

Organisational Profile?A = 1000 or more, B = 500 to 999, C A = Manufacturing focused B = Y = Yes N = No

0

One year = 4, One to five years = 2, More than five years = 0

Local = 4, National = 2, International = 0

Strong = 4, Moderate = 2, Weak/Unknown = 0

Is the evidence reliable?

PARTNER SELECTION (PS)Name of Potential Benchmarking Partner?Address of partner?Name of contact person at partner if known?Describe the partners’ best practice, if knownEvidence that the partner has good to best practices which are related to the benchmarking area of focus (e.g. evidence from brainstorming, questionnaire, expert opinion?)

What level of performance has the partner achieved, if known?Other information on the partner?

Weighting % TotalN.A. 1N.A. 1N.A. 1

3

Description of Criteria Rating System Weighting % TotalRelationship between benchmarking area of focus and partner’s best practice

Strong = 4, Moderate = 2, Weak/Unknown = 0

20 80

What level of performance has the partner achieved?

World Class/Outstanding = 4, Good/Above Average = 2, Poor/Unknown = 0

20 80

How recent is the evidence? 4 20 80

Location of partner 4 15 60

Likelihood to participate? 2 5 10

Number of Employees? C N.A. N.A.Industrial Sector? B N.A. N.A.Competitor? No N.A. N.A.

Total Score 330

Local = 4, National = 2, International = 0

Strong = 4, Moderate = 2, Weak/Unknown = 0

Organisational Profile?A = 1000 or more, B = 500 to 999, C A = Manufacturing focused B = Y = Yes N = No

Is the evidence reliable? Very reliable = 4, Moderately reliable = 2, Unknown = 0

2 10 20

One year = 4, One to five years = 2, More than five years = 0

Score4

4

Evidence of good to best practices Is the evidence from multiple sources?

Multiple sources = 4, Two sources = 2, One source = 0

4 10 40

B. Recognised as an innovative/best practice call centre (e.g. 1C. Operated customer service/call centre for at least 5 years 1

Final TotalPartner Selection Criteria

Provides 24/7 phone and email service to its cellular customers. Field technician are called out to assist with resolving some problems. Not been involved in benchmarking before.

Pre-Screening Criteria (Pre-Screening criteria that need to be met that are specific to the project)

Description of Criteria Score (Pass = 1, A. Needs to be based in Australasia 1

Kiwi Cellular

Main Street, NelsonJoe Croft

Very high first call resolution rates

Company quotes that it is currently operating at NZ best. It responded to our questionnaire quoting 93% first call resolution. Our research indicates that this is close to world’s best performance at 95%.

93% claimed

PARTNER SELECTION (PS)Name of Potential Benchmarking Partner?Address of partner?Name of contact person at partner if known?Describe the partners’ best practice, if knownEvidence that the partner has good to best practices which are related to the benchmarking area of focus (e.g. evidence from brainstorming, questionnaire, expert opinion?)

What level of performance has the partner achieved, if known?Other information on the partner?

Weighting % TotalN.A. 1N.A. 1N.A. 1

3

Description of Criteria Rating System Weighting % TotalRelationship between benchmarking area of focus and partner’s best practice

Strong = 4, Moderate = 2, Weak/Unknown = 0

20 80

What level of performance has the partner achieved?

World Class/Outstanding = 4, Good/Above Average = 2, Poor/Unknown = 0

20 80

How recent is the evidence? 4 20 80

Location of partner 4 15 60

Likelihood to participate? 2 5 10

Number of Employees? C N.A. N.A.Industrial Sector? B N.A. N.A.Competitor? No N.A. N.A.

Total Score 330

Local = 4, National = 2, International = 0

Strong = 4, Moderate = 2, Weak/Unknown = 0

Organisational Profile?A = 1000 or more, B = 500 to 999, C A = Manufacturing focused B = Y = Yes N = No

Is the evidence reliable? Very reliable = 4, Moderately reliable = 2, Unknown = 0

2 10 20

One year = 4, One to five years = 2, More than five years = 0

Score4

4

Evidence of good to best practices Is the evidence from multiple sources?

Multiple sources = 4, Two sources = 2, One source = 0

4 10 40

B. Recognised as an innovative/best practice call centre (e.g. 1C. Operated customer service/call centre for at least 5 years 1

Final TotalPartner Selection Criteria

Provides 24/7 phone and email service to its cellular customers. Field technician are called out to assist with resolving some problems. Not been involved in benchmarking before.

Pre-Screening Criteria (Pre-Screening criteria that need to be met that are specific to the project)

Description of Criteria Score (Pass = 1, A. Needs to be based in Australasia 1

Kiwi Cellular

Main Street, NelsonJoe Croft

Very high first call resolution rates

Company quotes that it is currently operating at NZ best. It responded to our questionnaire quoting 93% first call resolution. Our research indicates that this is close to world’s best performance at 95%.

93% claimed

Enter company information

Partner Selection Table

Revise company information

Step 2 – Select potential benchmarking partners

Page 9: Workshop October 2015. Stage 3 Acquire (acquire best practices)

If you are good at Networking (Informal Benchmarking) this will help you to identify potential partners

People share information with people – not companies:•apply effort and build relationships•use that half open door

Develop rich external networks•Invest in “connections” over content

Be an “active” member•- Networks only flourish through contact and contribution

Page 10: Workshop October 2015. Stage 3 Acquire (acquire best practices)

Brainstorming Benchmarking websites Internet searches Benchmarking clubs Literature review Customers and suppliers Experts / Consultants – Universities / trade associations/

government sources Questionnaires

A wide range of sources can be utilised to generate a list of potential benchmarking partners

Page 11: Workshop October 2015. Stage 3 Acquire (acquire best practices)

Ask questions on the area of focus Ask questions related to Partner Selection

Criteria Are they interested in being a benchmarking

partner?

Perhaps send questionnaire to potential partners and random group to collect trend data.

Survey can be used as a partner selection tool

Page 12: Workshop October 2015. Stage 3 Acquire (acquire best practices)

Step 3 – Invite and acquire benchmarking partners

Describe the purpose of the project Explain why you have selected the

organisation as a potential partner Outline their level of involvement Outline the benefits from

participating Bring to their attention the

Benchmarking Code of Conduct (send them a copy)

Page 13: Workshop October 2015. Stage 3 Acquire (acquire best practices)

Step 4 – Prepare for data collection

Methods of data collection:

Questionnaire for completion by post, email, telephone

Site visit approach to collect data and information

Audit check-list Work-study approach Process mapping

Page 14: Workshop October 2015. Stage 3 Acquire (acquire best practices)

Preparing for a site visit – Are our questions ready?

• What methods will we use to obtain the information? E.g. Site visit tour, process mapping, site visit interviews, performance measure comparisons, partner presentations.

• What is the purpose of the site visit?• Who will design the research method and

questions?• Have we prioritised the importance of each

question? • Do we know who we want to answer the

questions? • Are there particular follow-up questions we

want to ask based on the partners responses to previous questions or information they have given?

• Have we made sure that our own organisation has answered the questions?

Page 15: Workshop October 2015. Stage 3 Acquire (acquire best practices)

Preparing for a site visit – Structure of visit

• What should be included in introductions? E.g. introductions for project team and benchmarking partner staff, explanation of purpose of visit and benchmarking code of conduct.

• What do we want to show them? e.g. company brochure, presentation, video, flow-chart, product, our own organisation’s answers to the site visit questions.

• Who do we want to see? e.g. position(s), no. of people

• What do we want to see? e.g. process in action• How will we close the site visit?

Page 16: Workshop October 2015. Stage 3 Acquire (acquire best practices)

Preparing for a site visit – Time-plan considerations

• How long should the introduction be? • How long should the interview (s) be?• How long should the site tour be?• How long should the closing session be?• How long should the whole site visit be?

Page 17: Workshop October 2015. Stage 3 Acquire (acquire best practices)

Preparing for a site visit – Project team roles

• How many people from our team should go?

• Who should be the lead person?• Who will ask the questions?• Who will record the responses?

Page 18: Workshop October 2015. Stage 3 Acquire (acquire best practices)

Preparing for a site visit - Pre-visit correspondence with

benchmarking partners

• Has the date of the site visit been agreed with the partner?• Has an agenda for the site visit been agreed with the

partner? • Does the partner know the key questions you will be

asking? • Has the partner been asked to bring along to the meeting

any supporting documentation that they are willing to share?

• Have you been informed of who you will be meeting and their positions?

• Is the length of the whole site visit acceptable to the partner?

• If you are planning to record the meetings have you obtained permission from the Partner?

• Has a copy of the benchmarking code of conduct been sent to the partner?

Page 19: Workshop October 2015. Stage 3 Acquire (acquire best practices)

Preparing for a site visit – Post-visit correspondence with

benchmarking partners

• Have you written to the benchmarking partner to thank them for the site visit?

• Have you sent them a copy of the key findings from the site visit or clarified the findings?

• Have you sent them a copy of how your own organisation performs in terms of the site visit questions?

• Have you returned any documentation the partner may have lent you?

Page 20: Workshop October 2015. Stage 3 Acquire (acquire best practices)

Preparing for a site visit – Resources required for a visit

• Agenda / Time-plan• Benchmarking Code of

Conduct• Set of interview questions• Tape recorder• Note paper• Company brochures• Documentation on project• Dress code for visit

Page 21: Workshop October 2015. Stage 3 Acquire (acquire best practices)

Preparing for a site visit – Cost of visit

• Cost of visit? • Cost of transport?• Cost of hotel?• Cost of time lost due to visit?• Cost of documentation,

product prototypes, recording / video equipment?

• Cost of thank you gift?

Page 22: Workshop October 2015. Stage 3 Acquire (acquire best practices)

Step 5 – Collect and store data

Questions for Potential Partners (A Sample)

• CMC reviews strategy and evaluates new partners when approached or when a need arises.

• Do you identify gaps in need that cannot be fulfilled internally?

• How do you identify these gaps?• When do you start identifying these

gaps?• Who is involved in this process?

• How do you establish a need for a partner?

3

• We have partners for CIP, student and talent Development. We also have affiliated associations (e.g. alumni, PAACT).

• How do you maintain them given limited resources?

• How much manpower do you allocate to this process?

• Is there a rationale behind having so many partners?

• Do you have a variety of partners from different industries?

2

• Process Map• Are there specific steps to this process?• What are these steps?• What is the rationale behind these

steps?• What is the relevance of each step to

your organisation?• Do you have separate processes for

new partners and existing partners?

• Is there a process in place to systematically engage (e.g. approaching, cultivating and sustaining) partners?

1

How NJC does itSub QuestionsRoot Question

• CMC reviews strategy and evaluates new partners when approached or when a need arises.

• Do you identify gaps in need that cannot be fulfilled internally?

• How do you identify these gaps?• When do you start identifying these

gaps?• Who is involved in this process?

• How do you establish a need for a partner?

3

• We have partners for CIP, student and talent Development. We also have affiliated associations (e.g. alumni, PAACT).

• How do you maintain them given limited resources?

• How much manpower do you allocate to this process?

• Is there a rationale behind having so many partners?

• Do you have a variety of partners from different industries?

2

• Process Map• Are there specific steps to this process?• What are these steps?• What is the rationale behind these

steps?• What is the relevance of each step to

your organisation?• Do you have separate processes for

new partners and existing partners?

• Is there a process in place to systematically engage (e.g. approaching, cultivating and sustaining) partners?

1

How NJC does itSub QuestionsRoot Question

For PartnersFor Partners To bring along to partners during preliminary meetings

To bring along to partners during preliminary meetings

Page 23: Workshop October 2015. Stage 3 Acquire (acquire best practices)

Example of questionsProcess DefinitionWhat is your most successful process?Describe it?Process MeasurementWhat measures do you use to track process performance?How do you measure process output?Process PerformanceWhat is the current level of performance for the process?How have quantitative results changed in the past 6, 12 months?Process StrengthsWhich parts of the process work the best? How has the process been improved and refined over time?Process Opportunities for ImprovementWhat do you see as the current problem areas for the process?What past problems did you have? How did you solve those problems?Process Enablers What steps did you go through to implement the process? What training have you provided for those staff involved in the process? Have any business practices or methods contributed to your success? Are there any factors that could inhibit the adaptation of the process

into our company?Other questions Who do you recognise as the best company in performing this process? Do you have any non-confidential documents/information/press releases

that could help me to understand how your processes work?

Page 24: Workshop October 2015. Stage 3 Acquire (acquire best practices)

Don’t just learn about the best practice. Make sure you also learn about the

journey to reaching the best practice

Page 25: Workshop October 2015. Stage 3 Acquire (acquire best practices)

Site visits provide a great opportunity to

compare process flow charts and understand

differences

Terms - plan the project

Completed benchmarkingproject

Start benchmarking project

Act - undertake data collection &analysis

Evaluate stage complete?

Yes

Deploy - communicate & implementbest practices

Terms stage complete?

Research - research current state

Research stagecompleted?

Deploy stage complete?

Yes

No

Evaluate - evaluate the process &outcomes

No

Act stage completed?

Yes

No

Yes

No

No

Yes

Page 26: Workshop October 2015. Stage 3 Acquire (acquire best practices)

Site visit interviewing tips

Agree roles – e.g. interviewer and scribe Be on time Dress appropriately The partner should be doing most of the talking! Eye contact Lots of note taking Ask for evidence, e.g. “Could you please show me

the HR plans that result from this action plan?” Don’t rely on just verbal discussion to understand

the flow – ask for flowcharts or process maps (if not available – draw a rough diagram with them)

Stay awake…..Yes!

Page 27: Workshop October 2015. Stage 3 Acquire (acquire best practices)

Step 6 – Analyse data

How does their process performance compare with our process performance?

What is the magnitude of the performance gap?

What is the nature (root cause) and variation in this performance gap?

How much will their process continue to improve?

What characteristics distinguish their process as superior?

What is innovative about their approach?

Page 28: Workshop October 2015. Stage 3 Acquire (acquire best practices)

Analysis methods

Tabulations of metric & practice data Comparison matrix Data normalisation Graphs / bar charts Gap analysis Brainstorming Fishbone (Cause and Effect) diagrams Process flow charts Meetings – reaching consensus System for Classifying Practices

Page 29: Workshop October 2015. Stage 3 Acquire (acquire best practices)

Normalisation

Performance data Normalisation Factor Examples Organisation revenue, sales Per employee Revenue per employee,

Sales value per employee Transaction volume Per site/account Orders per number

accounts, Calls per number installed sites

Efficiency Per transaction Time per call,

Page 30: Workshop October 2015. Stage 3 Acquire (acquire best practices)

Classifying practices

Good idea (unproven) = it could have a positive impact on business performance, but requires further review/analysis.

Good practice = technique, methodology, procedure, or process that has been implemented and has improved business results for an organisation.

Best practice = a good practice that has been determined to be the best approach for many organisations, based on analysis of performance data – i.e. through benchmarking.

Chevron

Page 31: Workshop October 2015. Stage 3 Acquire (acquire best practices)

Analysis helps you to ensure the practice is a good fit for your

organisation

Page 32: Workshop October 2015. Stage 3 Acquire (acquire best practices)

There is usually no one golden nugget for success – it’s usually a combination and integration of many

good practices

Page 33: Workshop October 2015. Stage 3 Acquire (acquire best practices)

Step 7 – Formulate recommendations

How do the project findings help us to improve our process?

Should we redesign or make modifications to our current process?

How much could our performance improve if better practices are implemented?

Can results be achieved in near term or long term? Would the best practices we identified need to be

to be modified to adapt them into our business environment?

What have we learned during the project that will allow us to improve upon the best practices?

What resources are required to implement the best practices?

Page 34: Workshop October 2015. Stage 3 Acquire (acquire best practices)

Recommendations can be prioritised based on their expected impact and ease of

implementation

High impact, easyHigh impact, hard

Low impact, easyLow impact, hard

Page 35: Workshop October 2015. Stage 3 Acquire (acquire best practices)

Post-it notes can be used as a way to involve the whole team in deciding where

recommendations should fit on the priority matrix

Page 36: Workshop October 2015. Stage 3 Acquire (acquire best practices)

Develop a preliminary Action Plan

Description of Action Record performance

– current (c) – benchmark (b)– target (t)

Expected benefits (financial and non-financial)

Steps required to implement action Resource required

– labour (man days)– Expenses (travel and accommodation)– Capital (plant and equipment $)

Page 37: Workshop October 2015. Stage 3 Acquire (acquire best practices)

Step 8 - Review project progress and TOR

Step 9 – Obtain approval to start the next stage of TRADE