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THE VOICE OF THE MARKET (BUSINESS PROCESS BENCHMARKING (Robert Camp's…
THE VOICE OF THE MARKET
BUSINESS PROCESS BENCHMARKING
Referred to compare customer service quality with a firm
Based on concept of 5W2H developed by Alan Robinson
5W2H concept labelled as business process benchmarking project should result in the answers to seven question
Should be viewed in the context of a process
Conversion process
exists when input combined in 'what is'
Conversion process results in outputs that are eventually sold to the customer
There are 3 feedback loops in the process
*First feedback:
results from gathering data from the process*
*Second feedback:
Customer feedback loop and results from gathering data from the customer*
*Third feedback:
gathering information from competitors through benchmarking*
Robert Camp's Business Process Benchmarking
Step 1:
Decide what to benchmark
Step 2:
Identify whom to benchmark
Step 3:
Plan and conduct the investigation
Step 4:
Determine current performance gap
Step 5
: Project future performance levels
Step 6:
Communicate benchmarking findings anf gain acceptance
Step 7:
Revise performance goals
Step 8:
Develop action plan
Step 9
: Implement specific action and monitor progress
Step 10:
Recalibrate the benchmark
LEADING AND MANAGING THE BENCHMARKING EFFORT
To begin the management process, a strategy statement outlining the goals and strategies to be used is developed
Sets expectations for performance relating to the benchmarking project as a basis for improvement
Training
Key to success in all quality management approaches
BASELINING AND PROCESS IMPROVEMENT
Process redesign
Fundamental rethinking and redesign of business process
2 factors critical to achieve sucess through process redesign:
Breadth
Depth
Baselining
Monitoring of key internal firm performance measures over time to identify trends
PROBLEMS WITH BENCHMARK
4 key problems with benchmarking:
2. Predominance of functional benchmarking with firms in noncompeting industries makes it difficult to benchmark with these firm
3. Effort will be wasted unless fully understand your own processes before you benchmark someone else
1. Difficulty obtaining cooperation from other firms in your own industry
4. Benchmarking is time-consuming and costly