9.10 Internal Benchmarking

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9 hours 3 minutes
Video Transcription
Hi guys. Welcome to analyze phase benchmarking internal. I'm Catherine MacGyver and today you'll understand internal benchmarking and process improvement and understand the process to perform internal benchmarking.
So before we jump into how to do internal, let's talk for a minute about what is benchmarking. Benchmarking
is the process of learning from others. So this is where you're going to gather ideas, possibilities, opportunities. Really, you're looking for inspiration or comparing notes on how other organizations follow the same process or an equivalent process. So the reason why you do benchmarking in your analyze phase
is remember, and our previous modules
we were looking at our root causes. We developed some hypotheses, and then we were, um,
organizing our defects in a way that we know where to invest our time. And so the last aspect of that is not necessarily organizing our defects. But as we're moving in to improve, aren't there other ways that can be done because we're going to be transitioning from benchmarking into our improve things very quickly? So
what are the ways that our competitors do it? And is this an opportunity to air gapped?
Because remember, the analyzed phase is all about identifying opportunities and gaps. So with that benchmarking, we compare what we do to what other people do.
So there are a couple of different ways that you can do benchmarking. You can do internal benchmarking, and you can do external benchmarking. So internal benchmarking is going to be within your organization for groups that perform similar processes. So if you, for example, have a large organization
that has multiple procurement department's looking at each of those in trying to figure out who is the top performer in the company and what can we learn from them?
So you're going to want to look for organizations that how or you're gonna want to look for groups that have similar work functions or processes and I say similar because they don't have to be identical. Ah, lot of small medium sized businesses don't necessarily have duplications of the exact department.
But if you think about things like shared service is like I T and Human Resource is, are both shared service's.
So maybe how they take their requests and how they prioritize their work could be a learning opportunity. Or conversely, I T and operations tend to focus on getting stuff done. So how do we get stuff done and compared to ourselves to each other? And then you're going to want to possibly even drill down to top performers within that process.
So if we're still going with the I t. Example, if you have,
employees who are able to perform that process vastly above, remember, because we're talking about statistical versus no. Is it not just good days vastly above the rest of the organization? What is it that that employee does that is different from the rest of the employees and what can we learn from that? So that's internal benchmarking.
External benchmarking
is outside the organization. This could be your competitors. These could be your sister organizations. If you have multiple business units, they don't necessarily have to be similar industries. And we will talk a little bit about external organization in our next module or, excuse me, external been sparking in our next module.
So when we're doing internal benchmarking, So this is what happens within our company. You. The first thing that you're gonna want to do is identify the process. This should be should is a very strong word. This should be very straightforward because you understand the scope of the project that you're working on,
which means you should be able to relatively easily identify something that is similar work. So one away that I think about that would be like an internal communications department that does the company newsletter
and an external marketing department that does our client in newsletter both of these air within the organization. They're both doing newsletters. Let's talk to each other and see, um, if we can learn anything from each other.
So with that, once you identify a process that you want a benchmark, you want to contact to the process owner and explain to them their positions, people sometimes get a little sketchy when you're like, I'd like to show up and watch you do your work without giving them the context. So you want to make sure that there is buying that they want to support you in your observations and internal benchmarking.
There may be reasons that you can't compare yourself to them. You wanna have that conversation.
The next step that you're going to do is review that department's documentation so well, hopefully they have current state process maps. They might not, but you're gonna want to look at their policies and their procedures in any of their processes to give you conceptual background. So remember, when we do our current state process mapping,
we want to look at those things so that we have a framework.
When we're starting to actually document the process for this one. We wanna have a framework so that when we go and observe the process or potentially process, map the process. We can have that conceptual framework because we're not necessarily subject matter experts in this internal process.
So once you observe and
hopefully do a current state process map for their process, what you're going to want to do is compare that current state with your current state. So what are they doing that's different?
This is going to be an input for your future state process mapping. So what can we learn from them? And how can we apply it to what we want to do and where we want to go in the future?
Which is why I say that hopefully you will be in an opportunity where you can map their process because then you have an apples to apples comparison. You have a graphical representation of your process, and you'll have a graphical representation of their process. You can compare them side by side. If for some reason you are not able to map their process,
make sure you take really detailed notes
because sometimes it is as simple as just a couple of little tiny tweaks that can improve the process from an efficiency standpoint. So
try to be detailed. Try to map the process, and then you're gonna want to compare what they do with what you do.
So when we're talking about internal benchmarking, Um,
this is an opportunity to learn within the organization. So there are some other quality improvement disciplines that are not lean. Six Sigma, specifically, the Malcolm Baldridge Quality Improvement Operational Excellence, disciplines that talk about how organizational learning is foundational to improving your quality and pushing. That actually goes back to one of Darrin's ideas
in total quality management, where one of the facets and organizational quality has to do with employees continuing education. You want to learn from your organization. Internal benchmarking is a great opportunity to break down those silos and comparing notes for lack of a better term it is very helpful
in idea generation. So we talked a little bit about collaboration and comparing notes and having that conversation about this is what I'm working on.
It is really great. You start seeing some joint brainstorming, you see collaboration in nontraditional senses, and then you get some ideas about what the future could look like for your project in your future state or your improved phase. So
that's it for internal benchmarking. Our next module is about external benchmarking. There are a couple of things that are different,
so I will see you guys there.
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