The DON Benchmarking Model for Conducting a Benchmarking Study:
The 10 Steps
Step 8. Establish
functional goals.
"Benchmarking
may drive a change in emphasis on which goals are most important. A
prioritization may be revealed that was not perceived before . . . the most
thorough use of benchmarks would change the absolute value of the goals. metric." (Camp, 1995)
Input to Step 8: The input
to Step 8 is the output from Step 7
- Feedback on the
recommended process changes.
A. Write
functional goals necessary and sufficient to achieve vision using best
practices.
Since
benchmarks are statements of an industry's best practices, finding them will
require a reexamination of an organization's existing functional goals within
the context of this new-found information. Functional goals need to be
established as a way to translate the benchmarking findings and recommendations
into specific statements of how the organization needs to change to meet or
exceed the best-in-class. A goal is a statement of a result to be achieved
representing a major accomplishment (DON TQL Glossary, 1996). Benchmarking
goals, based on the findings of the benchmarked practices, will set the stage
for changes in the strategies, objectives, and tasks of those who actually work
in the process.
The
organization should now have specific quantitative and qualitative statements
from the benchmarking study, and can work on establishing methods for
improvement with the specific information, numbers, and standards extracted
from studying the best-in class. The world-class target in the process is now
known.
Considerations
to incorporate benchmarking findings may include:
·
revising and rewriting functional goals.
·
incorporating the benchmarking findings into the
organization's strategic goals, strategies, and objectives.
·
ensuring that there is no need to adjust the strategic plan
itself based on the new knowledge gained from the benchmarking study.
In
writing functional goals, the ESC and QMB should:
·
specify short-and long-term goals.
·
prioritize improvement areas as high, medium, or low levels of
significance in scale. Discuss the possible affects on budgets, organizations,
and positions.
·
explore implications that new goals may have on the mission
and resources of the larger organization.
B. Have
performance standards and budget allocations reflect new organizational goals.
Change
the performance standards, especially those of the process owners, to reflect
the new goals and the desired outcomes of the benchmarked process. Those managers
and employees who are contributing to attaining these goals and changes should
be rewarded through the organization's performance process. Budget allocations
are also a reward and can serve as motivation and incentive for others.
Output of Step 8: The
output of Step 8 is the input for Step 9.
- Functional goals
necessary and sufficient to incorporate benchmarking findings and
recommendations into the organization.
- Performance standards
that reflect functional goals.
- Budget allocations that
reflect functional goals.
Quality
Advisor's Checklist
Before
moving to the next step, the quality advisor should review the following
checklist:
·
Are all the benchmarking goals necessary to become a best practice in
this process?
·
Are the benchmarking goals sufficient to make the changes necessary to
become a best practice in this process?
·
Are the benchmarking goals leading toward the vision of the organization?
·
How will the benchmarks be considered and incorporated into future
strategic planning?
·
How will the benchmarks be considered and incorporated into the future
budgetary process?
Source: USN Benchmarking Handbook
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