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implementation. This will require estimating the amount of this
practice to be performed in the next cycle of maintenance activity
for the particular product or service that was benchmarked. The
resource costs can be estimated based upon local conditions for
the initiating organization. Estimating the change in outcome
levels will be more difficult because the functional relationship
between resource levels and outcome levels is unknown and is
not easily estimated. This is especially true for customer
satisfaction levels and may be true for some outcome measures of
technical quality such as IRI, the number of inches of shoulder
edge drop off, and the reflectivity of signs.
STEP 5. IMPLEMENT AND CONTINUOUSLY IMPROVE
Setting Targets for Improvements
Experiences of the peer organizations will be helpful in
estimating a rate of change in the outcome measures. Targets can
be set for improved performance. They could be set at the level of
the best performances or in accordance with an estimate of the
improvement potential for a unit, which may even be at a higher
level than the best-performing unit. It is usually best to set a
reasonable target--a level that management believes can be
accomplished in the next maintenance cycle.
Making Improvement Plans
After investigating best practices of peers and setting targets for
improved performance, an implementation plan for carrying out
the improvement must be established. The implementation plan
should address the questions of what, how, who, and when.
What?
What business processes will be changed and what outcomes
and resources will be affected?
How?
How will the business processes be changed--through improved
scheduling, training, new technology and equipment, better
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Chapter 4: Steps of Customer-Driven Benchmarking
materials, improved management and information systems,
more efficient work reporting, or a combination of the above?
Who?
What managers and staff need to be involved? What levels of the
organization need to participate? How broadly the changes will
be implemented is an important part of the plan. Will
implementation include all possible work units or will the
changes in practices be implemented as a pilot project that affects
just one unit?
When?
What is the schedule for improvements? Which improvements
will occur first? Do some improvements depend upon the
implementation of others?
Implementing New Practices
It is easy to maintain the status quo. Some organizations hesitate
to embrace change, especially changes in practices that were
developed elsewhere. Management must support the planned
improvements and emphasize and reward improved
performance.
Managers at appropriate levels should be given the responsibility
to manage the changes and to give visibility to changed
performance. Moreover, management will want to prepare the
organization for the next cycle of continuous improvement. This
should include gauging how the next round of improvements
will affect customer-driven outcomes and resource usage.
Starting Again
Customer-driven benchmarking is a continuous five-step cycle:
1. Select partners,
2. Establish measures,
3. Measure performance,
4. Identify best performances and practices, and
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5. Implement and continuously improve.
In fact, benchmarking is generally regarded as a continuous
improvement process. Once the last step is completed, you start
over again with the first step, as shown in Figure 23.
Establish Measures
Figure 23. Steps in the Benchmarking Process
In organizations committed to benchmarking, there is an attitude
of continually striving to produce the best possible results.
Starting again is routine for organizations committed to
benchmarking. There is an atmosphere of creativity, an
enthusiasm for trying new work practices, and a genuine desire
to better serve the customer.
Each cycle of the benchmarking process will result in a different
set of best performers. There will continually be changes in the
peer group with which an organization can compare practices.
Each organization or unit that embraces customer-driven
benchmarking can be confident that from time to time and
perhaps frequently, they will be among the best performers. And
even if they are not, they will be able to identify practices that
will allow them to improve, year in and year out.
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