Page 148 - The Handbook for Quality Management a Complete Guide to Operational Excellence

134 I n t e g r a t e d P l a n n i n g B e n c h m a r k i n g 135

underestimate the time, cost, and effort required to successfully
complete a benchmarking project. Managers should be informed
that, while it’s impossible to know the exact time it will take for a
typical benchmark ing project, a rule of thumb is that a team of four
or five individuals requires a third of their time for 5 months to
complete a project.
• Focusing on metrics rather than processes. Some firms focus their
benchmarking efforts on performance targets (metrics) rather than
processes. Knowing that a competitor has a higher return on assets
doesn’t mean that its performance alone should become the new
target (unless an understanding exists about how the competitor
differs in the use of its assets and an evaluation of its process
reveals that it can be emulated or surpassed).
• Not positioning benchmarking within a larger strategy. Benchmarking
is one of many total quality management tools—such as problem
solving, process improvement, and process re-engineering—used
to shorten cycle time, reduce costs, and minimize variation.
Benchmarking is compatible with and complementary to these
tools, and they should be used together for maximum value.
• Misunderstanding the organization’s mission, goals, and objectives. All
benchmarking activity should be launched by management as part
of an overall strategy to fulfill the organization’s mission and
vision by first attaining the short-term objectives and then the
long-term goals.
• Assuming every project requires a site visit. Sufficient information is
often available from the public domain, making a site visit
unnecessary. This speeds the benchmarking process and lowers
the cost considerably.
• Failure to monitor progress. Once benchmarking has been completed
for a specific area or process benchmarks have been established
and process changes imple mented, managers should review progress
in implementation and results.

The best way of addressing these issues is to prevent their occurrence
through carefully planning and managing the project from the outset.
This list can be used as a checklist to evaluate project plans; if the plans
don’t clearly preclude these problems, then the plans are not complete.

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