Time
9 hours 3 minutes
Difficulty
Beginner
CEU/CPE
9

Video Transcription

00:00
Hi, guys. Welcome to analyze phase benchmarking external. I'm Catherine MacGyver and today you're going to understand external benchmarking in a process improvement environment and understand the process to perform external benchmarking. If you remember in our last lesson, we went over internal benchmarking
00:19
where we learn from ourselves as an organization
00:21
now for external benchmarking will be looking outside of our organization.
00:26
So
00:27
first and foremost, external benchmarking is not industrial espionage. This is not competitive intelligence. This is not market advantage. What you're going to be thinking about when you think about external benchmarking is best practices. So these are areas where these
00:44
organizations are leading the industry or pushing the industry towards a more
00:50
productive or higher performance place. So there are two different types of external benchmarking. There is the 1st 1 which is competitive benchmarking. Would you compare yourself to similar organization? So if you are a hospital, you will compare yourself to a hospital with a similar bed count or demographics. If you are a telecom company,
01:08
you're going to compare yourselves toe other telecom companies with similar service offerings.
01:14
So competitive benchmarking is generally where people start when they do external benchmarking because it is most translatable to their own organization. The other side of benchmarking external benchmarking is functional benchmarking. So what this is is This is where you guys compare yourself
01:33
to the best in the industry regardless of the industry. So world class organizations, innovators
01:41
the way that I usually think of this is explaining to people that when they have a startup, do they want to be Amazon? Andi, If they do, what does Amazon do really well, one click buying. Okay, so let's pull that back
01:53
one click. Buying is great in a retail environment, but is it helpful in a health insurance environment? If you are able to do
02:00
what you need to do in one click? What can you learn from that?
02:06
So two different types competitive benchmarking, which is against similar organizations or industries, and functional benchmarking, which is against the best of the best of the best. So too, so with that, the next steps that you're going to want to do is
02:23
identify your process to benchmark.
02:25
This is going to be the same as your internal benchmarking exercises. And should it be relatively easy because you have your scope from your your project charter, and then you also have identified a similar process within your organization because you've done internal benchmarking first.
02:44
Then you're gonna select an organization.
02:46
It's a benchmark. So this is this can be comprised of industry reports, news organise, um, organizational gossip Like, how do you know that this company is a good company to try and benchmark of derive breast practices from? You're then going to prepare and arrange for visit so
03:04
similar to preparing for your observations for your internal benchmarking.
03:08
Except you're probably not going to get policies and procedures because of proprietary concerns. But you're going to want to learn as much about this company and how they do what they do as is publicly available. So you want to make it easy for them to teach you. Excuse me. So in ah, perfect best practices scenario,
03:29
you'll be able to visit the organization and when you d'oh
03:31
a little bit different than an internal benchmarking where you can't necessarily process map. But what you're going to want to do when you visit the organization is take some very targeted questions. Be prepared about what you want to look at what you want to ask questions about and take detailed notes.
03:49
So then your next step is going to be debriefing and documenting your findings with that organization. So
03:55
remembering that this is not a competitive intelligence exercise, you want to be respectful of the organization and want to make sure that you capture and reflect them as accurately as possible. And then once you have completed this exercise, you're going to communicate to your stakeholders. This is going to be both your project team and sponsor
04:14
and potentially a larger organization.
04:16
So I don't generally like to tell a lot of war stories. But I have to tell you that one of the most exciting things that I ever did with the project team is we actually did a field trip. So I was working for the hospital and for you guys through this course. The reason why I talk about hospitals as much as I do is because there are less
04:35
non compete and non disclosure
04:38
requirements on those as converted. Some of the other organizations that I've worked in so trying to be mindful and respectful of their information. But so I was working for a hospital in their laboratory and we were work, we were actually at a point where we were looking at what are the different gaps? We had huge amounts of overtime, so the project was actually
04:58
to decrease the overtime in the overhead costs.
05:00
And when we started looking around it industry information,
05:04
we realized that robotics and automation was becoming quite a trend. Well, we didn't have anywhere within the organization toe. Look at that because there's only one laboratory for the hospital and
05:15
there's no robotics or automation that would be applicable to what we did. So I actually reached out to one of the hospitals that was about four hours away that had been written up in one of the laboratory trade journals
05:29
for recently implementing an automation program. So at this point in our project team, we don't know if automation is the way that we want to go. This is way off. Scope is very, very expensive, but I arranged to do of a field trip
05:45
with their laboratory. We got to go in and see how they did their automation. They were actually able to run their entire laboratory with two employees, which is
05:53
huge. If you think about the laboratory I was working on had 30 something employees, but with that, it was great to see cutting edge technology. So we're talking about that. That functional we're seeing are innovators and also a little bit competitive because it is another laboratory. The huge outcome from that
06:11
was we got a lot of ideas based off of how they programmed of their robots to work,
06:15
how we could update our processes to being more
06:19
standardized, similar to a robotic type environment. So even though this wasn't an investment we would ever be able to do, we learned a lot about what we could do with the resource is that we had. So
06:31
when we're talking about identifying external benchmarking ups, opportunities and potentially data, you're gonna wanna look at trade publications. World class organizations tend to print to publish quite a few key studies. A couple of reasons master black belts have a requirement to publish. So
06:48
we're gonna write, um, and then the other thing is is because they are it is a very large accomplishment, and it's something to be very proud of.
06:56
Conferences you can actually see. You can actually learn a lot about what your competitors were doing from ads and Internet. So if you think about like the pre ordering for the restaurant or order off the APP, you learn about that from the advertisement customer feedback. So your customers,
07:13
when they're giving you feedback, can sometimes be very prolific and telling you what your competitors aire doing and the networking. So having conversations in my example, where we went to see the super cool robotic laboratory,
07:26
it was because I reached out to love director and said, Hey, this is where we're at So there's plenty of other places that you can identify benchmarking data from,
07:33
but these tend to be my go twos.
07:38
So with that, when you're thinking about doing external benchmarking, remember, you don't have to just do competitive. Functional is just as good, if not better, when we're talking about idea generating. So think back to robotics.
07:50
There was no way that we were ever going to compete with them from a fully automated laboratory standpoint, but we got a lot of great ideas from an innovation in a vest in practice standpoint,
08:00
so try to be open minded when you think about where you wanna learn from, and then The second thing is, if it's ableto happen, it iss super cool for your project team. Like being able to go and make another organization and network and see how it is. If this is something that you coordinate, it is
08:16
so exciting for your project team to do these field trips.
08:20
So that's actually it for our analyzed phase. Our next module is going to be our analyzed whole hates Thanks, guys.

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