Comparisons and Benchmarking. The fastest route to big improvements

Transcription

1 Comparisons and Benchmarking The fastest route to big improvements

2 Comparison????? Reviewing performance data of two or more organizations that use the same key performance measure as a first step in assessing relative performance and/or identifying performance improvement opportunities.

3 Benchmarking???? Systematically identifying best practices in strategically critical processes and adapting the best practices to your organization

4 Why Do Comparisons? Rough indicators of relative quality First step in identifying best practices Point benchmarking projects at areas with the most return on investment

5 Why Benchmark??? It s fun to look good Copying is faster than inventing More money for raises You can prove it works Corporations love to help us improve Road trips are fun Some other sucker tests the approach Get to speak at an ICMA conference You know if you really stink Not getting better is expensive and boring

6 Accelerated Improvement

7 So what will we learn? How to develop/select a measure for comparison? How to select organizations to compare with? How to analyze the comparison data? How to benchmark? How to maximize the payoff?

8 What you can compare National Standards - Identify national standards in your field and adopt them as measures. Common Measures Identify measures that are frequently used in your field and adopt them. Measures of Common Interest Develop good measures and recruit comparison partners.

9 Some Do s and Don ts Do conform definitions and calculations Don t compare the number of projects or classes Do normalize all workload measures, e.g., applications per FTE Do find a way to compare quality when you compare cycle-time and workload per FTE Don t measure or compare the trivial even though trivial stuff is easier to measure

10 Measures that often have comparisons Customer Satisfaction Cycle-Time % of Standards Met Normalized Workload

11 Who to compare with. Match significant variables that affect performance population; population density; age of population; climate; poverty indicators; budget; laws/code; volume;

12 Remember.. There never is a perfect match You must research factors (some controllable, some not) that affect apparent performance, e.g., and present caveats Different laws/code Demographics Climate Conclusions are drawn from the body of evidence

13 Sources of Comparison Data Regulators Professional Associations International City/County Managers Association Center for Performance Measurement Florida Benchmarking Consortium Web-sites of Best Practice Governments Recruited Partners

14 Analyzing the Data From canned charts and graphs: do your results look very different? identify obvious causes of differences (NY v. Yeehaw Junction); research (make calls) on other outliers From a data base: sort by relevant factors to create a comparison subset. Investigate major variation in the subset to identify important variables; dirty data; best practices.

15 Developing/Selecting Measures Give it a Try!!!! Exercise 1

16 Developing your measurement system Which comes first the comparison or the measure?

17 Try Some Analysis!!!! Exercise 2

18 About Benchmarking

19 The steps when you do it right.. Identify function to be benchmarked Assemble team Determine specific process to be benchmarked Document process Develop measures Research potential benchmarking partners Select partner(s) Go see how partners do the job & identify success factors Adapt & implement the best practices Monitor & revise

20 Big investments should only be made in important processes Selection Criteria: Strategic Priority High Profile Recurring Issue/Problem Significant Change in Customer Requirements Significant Change in Environment High Level Employee Dissatisfaction Significant Change Is Politically Acceptable Significant Impact on Customer Satisfaction Subject is Appropriate for Benchmarking

21 On small matters take some short cuts. Call a neighbor Call a few neighbors Call a City with good press

22 Who should be on the benchmarking team? Management Representative Process Manager Key Players in the Process Support Staff Significant Internal and External Suppliers Customers of the Process Information Services Budget Human Resources

23 Someone who knows how to benchmark and facilitate..

24 Why a Benchmarking team? All the relevant questions will be asked Expertise is at hand on feasibility Work will go faster Beyond buy-in there is STAKEHOLDER OWNERSHIP Implementation and adaptation goes better and faster

25 Narrowing topic and documenting process, the same analysis. Chart the major steps Get data on steps and by significant variable Get data on variation Brainstorm problems/issues Chart problem areas in detail Refine the measures

26 Flowcharting, basic tools. begin action Document how the system works- Not how it is supposed to work decision end Continued on next page

27 Brainstorm Where to go to find out what governments have best practices

28 Organizing the On-Site Visit Read written procedures before you go Assign roles Talk to the people who do the job Observe the environment Walk it through Details on data gathering Details on customer satisfaction Details on volume

29 The Truth About On-Site Visits They will not have the documentation you want!!!!!!!

30 Implication. Test when you get home

31 Viable Alternatives.. Standing Benchmarking Partner/Groups Competitive Process

32 A Good Implementation Plan Takes more time than you want to take Involves a big cast of stakeholders Provides for lots of on-going communication Creates documentation but encourages revisions Has clear accountability and deadlines

33 War Stories Code Team Building Division Team Garage Gang False Alarm Team FAT

34 Comparisons & Benchmarking in Local Government Goen For Us Lots of local governments No industry secrets Universal support Goen Against Us Culture Lack of documentation LOUSY DATA

35 And Now a Word From Our Sponsor DATA

36 If you don t use your reports because the data is dirty and you don t clean up your data because nobody uses the reports, You work for local government

37 To Increase Impact Benchmark within a Sterling system Leadership Strategic Planning Customer and Market Focus Information and Analysis Human Resources Process Management Business Results

38 Thanks How can this session be improved?