WorkshopOctober 2015

Stage 1

Terms of Reference (plan the project)

1. Determine area of focus for benchmarking project2. Develop project brief3. Form project team4. Train project team

5. Understand benchmarking code of conduct6. Prepare Terms of Reference 7. Develop documentation system

8. Review project progress and TOR9. Obtain approval to start the next stage of TRADE

Step 1 – Determine area of focus for benchmarking

projectSelected because: Level of strategic importance Pressure to improve performance in

this area by customers or other stakeholders

Performance can be significantly improved

Improvements will result in significant benefits

Ask yourself “is this benchmarking study worthwhile doing?”

Will your benchmarking project answer questions and provide solutions that are critical to the success of your organization? YES/NO

Is your organisation willing to change your current processes and systems if the findings from the study point towards changing direction? YES/NO

If the responses to these questions are ‘NO’, your benchmarking project will likely have a low Return on Investment and you should reconsider pursuing it

Source, adapted from:

Step 2 – Develop Project Brief

Consists of: Name of project sponsor Size of project team (No. of people) Members of the project team (Names) Aim of the project Scope of the project (clear description of

the area of focus for the project and what is included and excluded from the project)

Step 3 – Form Project Team

Project Team members: Team Leader Benchmarking expert Administrator Team member (s)

The Project Team reports to the Project Sponsor

Project Sponsor

Role Description Ideal Skills Project Sponsor

Acts as liaison between senior management and the project team

Ensures the project is consistent with organisational objectives

Ensures that the expected project benefits provide a good return in comparison to the level of resources invested

Ensure that appropriate resources are available to undertake the project

Monitors the progress of the project and helps the project team overcome any obstacles that are encountered.

Leadership skills Senior management Benchmarking experience

Project TeamRole Description Ideal SkillsTeamLeader

Liaison point with the project sponsor and project team

Leads the team and ensures that the TOR is created and executed

Manages project risks, resources and issues

Monitors and reports progress of the project

Leadership skills Project management

skills Communication skills Benchmarking

experience

Benchmarking Facilitator

Provides specialist advice and training on how to implement TRADE

Ensures all TRADE steps and stages are followed

Updates TRADE Spreadsheet Assists in finding

benchmarking partners through developing strong networks

Trained in TRADE Benchmarking

expertise Analytical skills Networking skills

Project TeamRole Description Ideal Skills Administrator Supports the Team Leader and

Benchmarking Facilitator in completing administrative tasks as required.

Organises project team attendance at meetings and books meeting rooms

Maintains project files and documents (may update TRADE Spreadsheet if not undertaken by the benchmarking facilitator)

Records minutes

Experienced administrator

Team Member(s)

Provides technical input, experience and ideas

Undertakes the assigned project work

Communicates to Team Leader if any issues

Process owner /stakeholder

Technical expertise Benchmarking experience Team skills Highly motivated to

complete work on time

Step 4 - Train project team

Minimum training requirements for all team members:

Introduction to benchmarking Overview of the benchmarking

methodology Roles of project team members Benchmarking Code of Conduct

Step 5 - Understand benchmarking code of conduct

Codes - “Guide Benchmarking encounters and advance the professionalism and effectiveness of Benchmarking”.

APQC and EFQM Codes of Conduct Benchmarking Agreement

"Principle of Confidentiality

Treat benchmarking findings as confidential to the individuals and organisations involved. Such information must not be communicated to third parties without the prior consent of the benchmarking partner who shared the information. When seeking prior consent, make sure that you specify clearly what information is to be shared, and with whom. An organisation's participation in a study is confidential and should not be communicated externally without their prior permission".

Benchmarking Code of Conduct

"To infinity ... and beyond!"

" That wasn't flying! That was... falling with

style!”

Benchmarking is “learning from others” with style!

Benchmarking Code of Conduct provides the style!

Step 6 - Prepare Terms of Reference

Project name Project sponsor Team members Project aim Scope Background Project objectives Expected benefits Expected costs Project stakeholders

Task management Training requirements Risk management Communication plan Change management Project audits Benchmarking Code of

Conduct TRADE timeline Actual benefits Actual costs

Terms ofReferenc

eshould

consider:

What we don’t want to happen in a benchmarking project is that projects are

commissioned with unrealistic expectations

First understand what is “really” required

Project aim

Relates to improving a:process activity/task

business improvement tool equipment

strategybehaviour

Scope

What is included and excluded? What is the end point of the project? Are there time and resource constraints?

Project aim/scope can be broad (wide)

Use a broad aim /scope when..Understanding of area is low &

difficult to prioritise opportunities for improvement

Output Major recommendations for change across multiple areas

(Project team often not involved in implementing changes)

Recommended project approach:Exploratory/shallow – overview comparison data,

searching for ideas/ best practices across many areas

Project aim/scope can be narrow

Output New practices implemented and improvements monitored

(Project team involved in implementing changes)

Recommended project approach:Detailed/deep – focussed comparison data,

searching for ideas/ best practices in a specific area

Use a narrow aim/scope when..Understanding of area is high & you know what needs to be improved

Background

Why is the project needed? Why selected? Who identified the need for the

project?

Project objectives

Specific, significant, stretching Measurable, meaningful, motivational Agreed upon, attainable, achievable,

acceptable, action-oriented Realistic, relevant, reasonable,

rewarding, results-oriented Time-based, timely, tangible,

trackable

Develop Milestone and Outcome Objectives Related to each stage of TRADE

• Objective 1 – To decide and obtain sign off on the Terms of Reference by 15 November 2015

• Objective 2 – To review our current processes and systems by 30 December 2015

• Objective 3 – To identify best practices in X by 25 March 2016

• Objective 4 – To implement best practices by 1 July 2016

• Objective 5 – To evaluate the outcomes from the project by 1 October 2016 with an expected increase in performance from X% to X%

Expected benefits

Financial % decrease in costs Increase in revenue

Non-Financial Time saved % increase in productivity Qualitative (e.g. improved

communication and knowledge).

Expected costsDescription of Resources Labour - Expenses – Capital –

Cost of Resources Labour ($) - Expenses ($)– Capital ($)– Total -

Is the likely resource input worthwhile in return for the expected benefits?

Stakeholders?

Who will be impacted by the project? How will they be impacted?

Tell me I may forget

Show me I may remember

Involve me and I will understand

“Buy-in” isn’t the same as “ownership”

“Buy-in” indicates that you have an idea that you didn’t involve others in but you want them to embrace it anyway.

“Ownership” is what people feel around an idea, improvement or decision because they’ve been part of the process of coming up with it on some level, at some point. 

Task management

• How will tasks be managed?(Project tasks/work can be managed through using the TRADE Task Worksheets in the TRADE SPREADSHEET)

Scope out project and likely tasks as soon as possible. E.g. number of meetings, intention of surveys/site visit etc.

Training required?

Benchmarking TRADE methodology Analytical skills Research skills Project management Communication

Risk ManagementRecord any risks that may stop you completing a successful project on time.

Communication plan How is progress of the project communicated

and who to?

Change management What is the process for agreeing changes

to the TOR?

Don’t get in “transmit only” mode when dealing with stakeholders –

invite them to participate on some level.

Opportunities for stakeholder involvement:

Input into the Terms of ReferenceReview of current process (brainstorming, process walk-throughs, fishbone diagrams)Visits to benchmarking partnersAction planningProgress presentations

Project audits Will an audit be undertaken, if so when?

Benchmarking Code of Conduct

Has it been read and understood? Refer to benchmarking agreement form

TRADE timeline

How long will each TRADE Stage take?

Projects usually take from 3-12 months

Actual benefits

Financial % decrease in costs Increase in revenue

Non-Financial Time saved % increase in productivity Qualitative (e.g. improved

communication and knowledge).

Actual costs

Description of Resources Labour - Expenses - Capital -

Cost of Resources Labour ($) - Expenses ($) - Capital ($) - Total -

Step 7 - Develop documentation system

The following information should be filed and stored:

Terms of Reference (all versions) Minutes of meetings Benchmarking Code of Conduct Signed Benchmarking Agreements Literature research information Company reports and documentation relevant to the

project Partner related documentation Site visit reports Presentation slides Benchmarking report

TRADE Spreadsheet is a ready-made documentation system

Record your ideas and identified best practices as you proceed through the

project

Date Name of Improvement Idea and/or Best Practice

Description (how will such a idea/practice improve on the current situation?)

Where/who can provide more information on this idea/practice? Reference any information documents as appropriate.

Should this idea/practice be Parked (P) for later review or Actioned (A) immediately?

Improvement Ideas and Best Practice Form

Benchmarking provides a winning formula

Your knowledge and experience

+best practices

= NEXT PRACTICES!!!

Step 8 - Review project progress and TOR

Examples of questions: Was the benchmarking training or mentoring

support satisfactory in order to be able to undertake this stage?

Does everyone understand their role? Does everyone have enough time to spend on the

project? Was the Terms of Reference completed to your

satisfaction? Are there any issues that we should raise with the

Project Sponsor that he/she could help to resolve?

Step 9 – Obtain approval to start the next stage of TRADE

Approval by Project Sponsor

Do the expected benefits provide a

good return on investment?