performance benchmarking (measuring success) validate/diagnose/improve presentation to: municipal...

Performance Benchmarking(Measuring Success)

Validate/Diagnose/Improve

Presentation to:Municipal Waste Management Association

2005 Fall SummitThursday, October 20, 2005

Presented By:William Schoen & Sam Chandler

R3 Consulting Group Inc.

Validate / Diagnose / Improve2

Benchmarking

“That which cannot be measured cannot be managed”

- Peter Drucker; Management Consultant

“That which is not measured is not managed” - R3


Presentation Outline

• What is Benchmarking• Why Use Benchmarking• Who Uses Benchmarking• Types of Benchmarking

• Validation vs. Diagnostic• Internal vs. External

• Organizing Benchmarking Efforts• Cultivating a Relationship with Safety

[End of R3 formal presentation]


Presentation Outline (continued)

• Open Discussion / Sharing of Ideas• Questions• What Benchmarks Are You Tracking (Internal / External)• What Additional External Benchmarks Would be of Value to

You

• MWMA Benchmarking Project• Identify Interested Member Agencies• Development of Qualified External Benchmarks• Identification of Best Management Practices


What is Benchmarking?

A Process Involving Some or All of the Following Steps:

1. Define Operational Characteristics

2. Identifying Operational & Financial Benchmarks

3. Documenting Current Baselines

4. Documenting Historical Trends for Benchmarks

5. Ongoing Tracking of Performance vs. Baselines


What is Benchmarking?

A Process Involving Some or All of the Following Steps:

6. Comparing Performance to Industry Standards (External Benchmarks)

7. Targeting / Prioritizing Areas for Improvement

8. Identifying Best Management Practices (BMPs)

9. Incorporating BMPs into Operations

10. Review / Refine / Repeat


Why Use Benchmarking?

Simply stated, Benchmarking is one of the most powerful tools for initiating and sustaining continuous improvement!


Who Uses Benchmarking?

• Bank of America• Xerox• U.S. Army• NASA• Your Colleagues• Your Competition (WMI / Allied / Republic)


Types of Benchmarking

• Validation Big Picture “How are we doing?”

• Diagnostic Fine Print “Where and How can we improve?”


Types of Benchmarking

• Internal• How does Current Performance Compare to

Historical Performance

• External• How does Our Performance Compare to Others


Organizing Benchmarking Efforts

• Safety

• Customer Service

• Productivity

• Cost


Safety

Cultivating a Relationship with Safety


Safety

To paraphrase one of the greats:

“A community cannot buy its way to Safety”- W. Edward Deming


Safety

Key Elements of an Enduring Benchmarked Safety System• Leadership• Commitment• Resources• Patience• Vision


Safety

Measurable Positive Outcomes

• Elimination of Wasted Time and Motion• Work Flow Optimization• Standardization of the Work Flow• Continuously Improving Customer Services• Improved Bottom Line for the Cost Center or Public

Business Unit


Safety

Benchmarking is a Safety Tool

• Measurement – To Improve and Control Outcomes

• Measurement – To Design and Verify Outcomes

• Measurement – To Complete Accident Reviews

(Lookbacks) and Develop New Processes


Safety

BenchmarkingAccident Records by:

• Type• Equipment Type• Staff Member• Location• Resolution Time• Severity (Cost)• Frequency• Detection Time


Safety

Benchmarking• On-the-Job Injuries by:

• Type• Frequency• Severity (Cost)• Resolution Time

• Accident Review History (Lookbacks)


Safety

Management Systems

• Safety Standards• Administrative Controls• Scheduling• Deficiencies• Incentives• Hiring Practices


Safety

Administration

• Workplace Layout Records

• Risk Assessment Records

• Training Records


Safety

System Maintenance

• Collect Baseline Data

• Create Preliminary Quantification

• Set Up Tracking Logs


Safety

Some Long-Term Keys• Asset Analysis• Safety Work Plans• Staff Capabilities or Knowledge• Opportunities• Motivation• Reward Success


Benchmarking

Open Discussion / Sharing of Ideas


Closing Thoughts

• If You Are Not Benchmarking Get Started! Safety Customer Service Productivity Cost

• If You Are An Experienced Benchmarker Take the Next Step Dig deeper Keep Measuring Success!

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