Benchmarking for hrd professionals

Benchmarking For HRD Professionals

Professor Jayashree Sadri and Dr. Sorab Sadri

What Is Project Benchmarking And Why Should A Project Manger Care?

Benchmarking is a euphemism for legally ripping off someone else’s

ideas…..(www.leadingexcellence.com)

Project Benchmarking• Compare to Best in Class

Identifies organizations with best project practices and results and assists in adapting their practices for innovation in one’s own organization or one’s own projects.

• Think Outside the BoxEnables Project and Program Managers to learn what is possible outside their current belief system.

• Improve Projects and Overall SystemWhen carried out correctly, benchmarking can help individual project managers and project organizations achieve a breakthrough in their performance.

……… And Why Should A Project Manger Care?

• See where your project performance ranks versus other projects in your industry

• Achieve Breakthroughs by gaining from other’s experience

Understand and improve your own performance, gain 20/20 hindsight wisdom without paying the high price of first hand experience, and attain recognition and good exposure to top management, especially in high profile projects

• Gain or maintain a competitive advantage

Enhancing the efficiency of your project delivery system can be easily translated into cost, schedule and safety improvements. This leads to a competitive advantage in the industry.

How Can A Project Manager Be Involved In Benchmarking?

On a project level

A Project manager may opt to compare his/her project performance record in terms of cost, schedule and operability to similar projects within industry; or look at the likelihood of a future project success by comparing its scope and characteristics to lessen learned from industry

On a program level

Benchmarking several projects that contribute to a bigger program success

Or within an overall organizational project management process or system

Examining the overall organizational project management process against industry counterparts performance to improve capital competitiveness

Why Use External Benchmarking?

• Impartiality

• Confidentiality

• Consistency Of Measurement

• Standardization Of Industry

Definitions

• Standardization Of Industry Practices

Why Are Institutions Like CII Needed To Promote The Practice Of Benchmarking?

Benchmarking involves borrowing practices and ideas from competitors in the same industry.

• Impartial institutions like CII are needed to regulate the flow of knowledge, retain the confidentiality of sensitive information and prevent unethical behavior such as bid rigging.

CII is hence the keeper of confidential information and the provider of metrics for comparison

• CII develops surveys of practices and provides the quantitative metrics against which participants benchmark.

• CII has an established code of conduct and confidentiality policy to ensure data are treated properly

History of CII Benchmarking

•Chartered by the CII BOA in Nov 1993

•First Committee Meeting in Feb 1994

•First Data Collection in 1996

•Developed on-line Questionnaire in 1999

CII Benchmarking Objectives

• Provide the Industry with Performance NormsProvide the Industry with Performance Norms

• Measure the Use of Selected Best PracticesMeasure the Use of Selected Best Practices

• Quantify the Value of Best Practices Quantify the Value of Best Practices

• Provide Member Companies tools for Provide Member Companies tools for

self-analysisself-analysis

• Provide the Industry with Performance NormsProvide the Industry with Performance Norms

• Measure the Use of Selected Best PracticesMeasure the Use of Selected Best Practices

• Quantify the Value of Best Practices Quantify the Value of Best Practices

• Provide Member Companies tools for Provide Member Companies tools for

self-analysisself-analysis

CompanyContinuous Improvement

Program

CIIResearch

CII KnowledgeBase

& Training

Benchmarking & Metrics

Benchmarking - An Iterative Process

Benchmarking as Part of the Continuous Benchmarking as Part of the Continuous Improvement CycleImprovement Cycle

ImplementImplementBest PracticesBest Practices

ImplementImplementBest PracticesBest Practices

MeasureMeasureResultsResults

MeasureMeasureResultsResults

Identify OpportunitiesIdentify Opportunitiesto Improveto Improve

Identify OpportunitiesIdentify Opportunitiesto Improveto Improve

Select Select ImplementationImplementation

ToolsTools

Select Select ImplementationImplementation

ToolsTools

ConductConductTrainingTrainingConductConductTrainingTraining

Compare toCompare toCompetition/Competition/

Company TrendsCompany Trends

Compare toCompare toCompetition/Competition/

Company TrendsCompany Trends

Who Is Needed To Make This Process Work?

• Senior Management

• Benchmarking Associate

• Project Management

• CII Staff & BM&M Committee

• Senior Management

• Benchmarking Associate

• Project Management

• CII Staff & BM&M Committee

Project Managers Company BenchmarkingAssociate

Company Leadership CII Staff, Account Mgrs.& Committee

CII Benchmarking & Metrics Roadmap

Responsible for Benchmarking Coordination

Decision / Commitment to Benchmark as Basis

for Improvement

Responsible for Project Benchmarking &

Improvement

Develop/Improve Metrics, Processes,

Policies & Procedures

Develop Data Collection &

Reporting Tools

Perform Validation Checks, Run Analysis & Generate Reports

Provide Input to Research &

Implementation

Conduct Training & Feedback Sessions

Select Projects for Analysis & Preload/Initiate Project in CII Database

Validate Questionnaires

ReleaseQuestionnaire to CII

Perform Self-Analysis & Develop Improvement Plan

Complete Questionnaire During

Project Execution

Complete & Submit Questionnaire at Project Close-out

Review and Act on Interim CII On-line Recommendations

Levels Of Use Of The Benchmarking System

Improve Efficiency Of A Business Unit

Improve Performance Of A Single Project Or A Group Of Projects

Improve Efficiency Of Overall Project System

Improve Selected Performance Metrics (E.g. Productivity)

Now What…?

Develop a Path Forward

•Contact your Benchmarking

Associate

•Identify your CII Account Manager

•Attend CII Benchmarking

Associates Training

Develop a Path Forward

•Contact your Benchmarking

Associate

•Identify your CII Account Manager

•Attend CII Benchmarking

Associates Training