Page 112 - DCOM506_DMGT502_STRATEGIC_MANAGEMENT

Strategic Management

Notes The 12 stage methodology consisted of:
1. Select subject ahead
2. Define the process
3. Identify potential partners

4. Identify data sources
5. Collect data and select partners
6. Determine the gap
7. Establish process differences

8. Target future performance
9. Communicate
10. Adjust goal
11. Implement

12. Review/recalibrate.
The following is an example of a typical benchmarking methodology:
1. Identify your problem areas: Because benchmarking can be applied to any business process
or function, a range of research techniques may be required. They include: informal
conversations with customers, employees, or suppliers; exploratory research techniques
such as focus groups; or in-depth marketing research, quantitative research, surveys,
questionnaires, re-engineering analysis, process mapping, quality control variance reports,
or financial ratio analysis. Before embarking on comparison with other organisations it is
essential that one knows one's own organisation's function, processes; base lining
performance provides a point against which improvement effort can be measured.
2. Identify other industries that have similar processes: For instance if one were interested
in improving hand offs in addiction treatment he/she would try to identify other fields
that also have hand off challenges. These could include air traffic control, cell phone
switching between towers, transfer of patients from surgery to recovery rooms.

3. Identify organisations that are leaders in these areas: Look for the very best in any
industry and in any country. Consult customers, suppliers, financial analysts, trade
associations, and magazines to determine which companies are worthy of study.
4. Survey companies for measures and practices: Companies target specific business processes
using detailed surveys of measures and practices used to identify business process
alternatives and leading companies. Surveys are typically masked to protect confidential
data by neutral associations and consultants.

5. Visit the "best practice" companies to identify leading edge practices: Companies typically
agree to mutually exchange information beneficial to all parties in a benchmarking group
and share the results within the group.
6. Implement new and improved business practices: Take the leading edge practices and
develop implementation plans which include identification of specific opportunities,
funding the project and selling the ideas to the organisation for the purpose of gaining
demonstrated value from the process.

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