KLS Institute of Management Education and Research

Belgaum

Prof. Mahantesh B Halagatti-KLS IMER-Belgaum 1

 !….Defining BPR….!

• "... The Fundamental Rethinking

And Radical Redesign Of
Business Processes To Achieve
Dramatic Improvements In
Critical Contemporary Measures
Of Performance, Such As Cost,
Quality, Service, And Speed."
2
 Defining PROCESS
• “ A set of logically related tasks
performed to achieve a defined
business outcome”

3
 PROCESS (simplified)

• “ One or more tasks that add

value by transforming a set of
inputs into a specified set of
outputs( Goods or service) for
another Person (Customer) by
a combination of people,
methods and tools.”
4
Characteristics Processes have:

• Customers ( Internal or External)

• Cross-Organizational boundaries (
Across or Between organizational
Subunits)

5
Categorization of Processes according
to Work like:

• Design & Development

• Marketing & Sales
• Purchasing
• Production
• Service
• Distribution
• Control
• support

6
 Processes……
• Processes are generally identified in
terms of Beginning and End points,
Interfaces and Organization units
involved.
• High impact processes should have
Process owners.

7
 Process defined based on 3
Dimensions…:
• ENTITIES: Inter-organizational,
Interventional or Interpersonal.
• OBJECTS: Physical or Informational.
• ACTIVITIES:
Managerial
Operational

8
 Components for setting Direction
are:
• Mission
• Vision
• Values
• Goals & Objectives
• Policy
• Methodology

9
 Defining Fundamental
• Attempts to examine Why a particular task
or job is being done and Why it is being
done in a particular way.
• Ascertain relevance of the job.
• Possibility of doing it in a different and
better way.
• Should be Obliterated if Redundant,
Modified if Essential or Unavoidable.

10
 Defining Radical….

• BPR attempts to get into the Root of the

business.
• Not concerned with Marginal or
Incremental improvements.
• BPR does not operate at surface level
where improvements are of minor
nature.

11
 Defining Redesign…
• A Plan for making changes to the
structure and functions of Process so as
to better serve the purpose of the original
Process, or to serve purposes different
from those set forth in the original design.

12
 Defining Dramatic
• Relates to radical improvements.
• Marginal improvements in key processes
is inadequate.
• Dramatic implies quantum leaps in
performance, achieving breakthroughs or
break points.

13
 Why Reengineering?
• For organizations that want to survive and
grow, improvement is not an option but a
compulsion.
• Quantum leaps are needed if an
organization is to forge ahead.

14
 Symptoms that signal are….
• It takes too long for an organization to
move its products from conception to the
market place as compared to its
competitors.
• The budgeting process may be too
complex.
• The services provided by the organization
are not compatible with its customers
needs.
15
 Principles or Rules of
Reengineering
• Rule 1: Organize around outcome, not
tasks
• Rule 2: Have those who use the output
of the process perform the process
• Rule 3: Merge information processing
work into the real work that produces
the information
• Rule 4: Treat geographically dispersed
resources as though they work
16
centralized
 Rules…
• Rule 5: Link parallel activities instead of
integrating their results
• Rule 6: Put the decision point where the
work is performed and build control into
the process
• Rule 7: Capture information once-at the
source

17
 Essence of Reengineering

• Breaking away from outdated rules.

• Making Quality and Customer service
the primary focus of the organization.

18
 Three ‘R’s of Reengineering.

• Rethink

• Redesign

• Retool.

19
 Requirement of Reengineering
process
• Critical processes

• Strong leadership

• Cross functional teams

20
 Requirements…

• Information technology

• Clean slate philosophy

• Process analysis

21
 KLS Institute of Management Education and Research
Belgaum

BPR
in
Manufacturing Industry

Prof. Mahantesh B Halagatti-KLS IMER-Belgaum 22

 Enablers of BPR in Manufacturing
• Agile Manufacturing
• Lean Manufacturing
• Just-in-Time (JIT)
• Collaborative Manufacturing
• Intelligent Manufacturing

23
 Agile Manufacturing
• Determine customer needs quickly, and
continuously reposition the company
against its competitors.
• Design things quickly based on those
individual needs.
• Put them into full scale quality and
production rapidly.
• Respond to changing volumes and mix
without delay.
• Respond to a crisis quickly.
24
 Major Implications on
• Organization
• Business Processes
• Production processes and equipment
• People-skill interchangeability
• Recruitment and training

25
 Lean Manufacturing

• Working with limited inventory, waste

elimination and reacting on-the-fly to
changing conditions.
• Results are significant reduction in
operating expenses, and increased
customer satisfaction and retention.

26
 Just-in-Time (JIT)

• JIT is a way of producing products on

order, and the product should be delivered
on time.

27
 Some principles of JIT are:
• Use of multiple small machines
• Group technology
• Production smoothing
• Labor balancing
• Set-up reduction
• Standard working
• Visual controls

28
 KLS Institute of Management Education and Research
Belgaum

BPR
in
Service Industry

Prof. Mahantesh B Halagatti-KLS IMER-Belgaum 29

• In service sector, despite speed and courtesy in
addressing customers, customer’s hostility
persists due to the inability of the service
provider to maintain consistency in delivery and
service.

• To remain competitive, service organizations

need to focus on customer satisfaction and on
real customer needs and expectations. They
need to operate according to the standards of
the customers.

30
 Some of the salient features
• Make the customer the starting point for
change.
• Design work processes in light of
organizational goals.
• Restructure to support front-line
performance.

31
 Impact of reengineering on the
service industry

• The human dimension

• The work process dimension

• The technology dimension

32
 KLS Institute of Management Education and Research
Belgaum

Implementation of BPR

Prof. Mahantesh B Halagatti-KLS IMER-Belgaum 33

34
35
 Step 1:

Develop Business Vision and

Process objectives.

36
 Develop Business Vision and Process
objectives.
• A business system is a collection of
process each of which is developed to
fulfill the needs of customers and
characterized by cross-functional tasks.
• Before advent of BPR tasks not processes
used to be rationalized or simplified by the
industrial engineers. these tasks were not
based on business vision.

37
 Develop Business Vision…….

• Process oriented thinking is a

prerequisite for BPR.
• Approach is to combine tasks into an
integrated whole that represents the
end-to-end business processes like
product development, order fulfillment,
procurement.

38
 Develop Business Vision…….

• Business vision should emphasize:

1) Current/future competition
2) product/service quality
3) customer’s requirements.

• A customer-oriented organization is aware of

the prevailing competition in the market and it
offers its product/service accordingly to
achieve the competitive edge.
• There is a vide choice for today's customers.
39
 Develop Business Vision…….

• Common objectives for vision statement are

cost reduction, time reduction, quality
improvement.
• Dimensions of service quality are:
Responsiveness- willingness to help
customers and provide prompt service.
• Dimensions of product quality are:
Serviceability- speed with which the product
can be put into service when it breaks down.
40
 Step 2:

Identification of processes to be
Reengineered.

41
 Identifying processes to reengineer

• There are two approaches for identification

and prioritization of processes:
Exhaustive-All possible processes are
identified and prioritized on the basis of
urgency High Impact- Attempts to
identify only the most important processes or
those in most in conflict with the business
vision and process objectives.
• Once activities to be performed are identified
their desired performance levels or objectives
are required to be specified in quantitative
terms.
42
Identifying processes to reengineer….

• In drawing a process chart, the sub-

processes and activities involved in it
should be properly documented.
• A ‘ Time-Box’ can be implemented which
puts a limit to the time needed for
studying a process.

43
 Step 3:
• Understanding and measurement of existing
processes.

44
 Understanding and measurement of existing
processes…

• Is concerned with an assessment of the

current state of affairs:
• Departments find nothing wrong with the
tasks assigned to them so long as they
conform to the norms set for quality, costs,
time..
• Time taken for a process or cost incurred in
its execution needs to be quantified before
and after reengineering to highlight the
improvement in process.
45
 Three major advantages of Quantification:

• Enables the company to know where a process

is now and what the management wants to
achieve.
• Dramatic achievements have the potential to
reinforce a process-oriented culture in the
organisation.
• Quantified performance of a process before and
after reengineering is likely to silence the
skeptics.

46
 Step 4:

• Utilization of Information technology as an

enabler.

47
 IT capabilities
• Transactional
• Geographical
• Automational
• Analytical
• Informational
• Sequential
• Knowledge management
• Tracking
• Disintermediation

48
 Step 5:
• Design and evaluation of process prototype.

49
 Prototype….
• ‘ Prototype’ is concerned with a process,
not a product.
• Reengineering team should first evaluate
the feasibility of the proposed
reengineered process.
• Need for prototyping.

50
 Advantages of Process
Prototype:
• Inexpensive in comparison to a process
that fails during implementation.
• Develops process oriented mindset among
people.
• Improves process further based on
process prototype members suggestions.

51
 Dimensions of process types:
• Process Entities
• Process Objects
• Process Activities

52
 Process Entities
• Inter-organisational
• Inter-functional
• Interpersonal

53
 Process objects
• Physical – manufacturing, inspection

• Informational- planning, decision

making

54
 Process Activities
• Operational- inspection of product, receipt
of materials, response to customer
enquiry.
• Managerial-planning, control, provision of
resources.

55
56
 KLS Institute of Management Education and Research
Belgaum

Prof. Mahantesh B Halagatti-KLS IMER-Belgaum 57

 NEED FOR STRUCTURE

• Reengineering cannot be carried out in

an unstructured manner.
• A reengineered process deals with
issues of interdepartmental rather than
intradepartmental.

58
Usual Reengineering structure

BPR LEADER

PROCESS OWNERS

REENGINEERING TEAMS

OTHER EMPLOYEES INVOLVED

IN THE REENGINEERING PROCESS
59
Different team members in BPR
• Executive sponsor
• Business Analyst
• Project manager
• Developer
• Quality Assurance Analyst
• Trainer
• Application Architect

60
 Team members….
• Data base Analyst
• Infrastructure Analyst
• Information Architect
• Solution Owner
• End User
• Subject Matter expert
• stakeholders

61
 KLS Institute of Management Education and Research
Belgaum

COMMON PITFALLS IN BPR

Prof. Mahantesh B Halagatti-KLS IMER-Belgaum 62

• A company where most of the people at
different levels are receptive to new ideas
and keen to change their ways of doing
things differently for the benefit of the
company as a whole, will find it less difficult to
introduce BPR.
• On the other hand company dominated by
employees with a skeptic defensive and
complacent mind set will find it hard to
introduce BPR.
• Resistance to BPR is often seen to originate
from the middle and junior level managers.

63
64
SUCCESS FACTORS FAILURE FACTORS

65
SUCCESS FACTORS FAILURE FACTORS

66
SUCCESS FACTORS FAILURE FACTORS

67
SUCCESS FACTORS FAILURE FACTORS

68
 1.Reengineering too many processes at initial
stages

• Top management may be so impressed with

the achievements of BPR in other
organizations that it makes the mistake of
initiating the reengineering of too many
processes simultaneously.
• The BPR leader due to his or her other
commitments, may not be in a position to
devote enough time to guide the process
owners and monitor their activities.
• The IT facilities may be too inadequate to
handle too many IT-enabled processes
simultaneously. 69
 Advantages of reengineering a few key
processes at initial stages.
• Availability of adequate time for the leader
to focus on reengineering.
• In-depth experience with a few process
facilities successful implementation of
more processes in future.
• Sensing of behavioral and attitudinal
aspects at initial stages provides steps for
addressing them.

70
2.Inadequate training of process owners
and team members

• Training should lay stress on transforming

task-oriented mindset of trainees to process
oriented thinking.
• Training in reengineering cannot be under
taken in the form of a standard training
package.
• The training materials should be prepared in
such a way that the participants are able to
relate these inputs to their organizational
environment and the kind of work they are 71
doing.
 Prepare action plan:
• What -
( line of action)
• When-
( Time)
• Who-
( Concerned agency)
• How-
( Mode of Action)

72
 Action plan guidelines
What, when, who, how

Group action plans

Group 1 Group 2 Group 3

Presentation of group action plans

Preparation of combined action plan

Presentation of combined action plan to BPR leader

Modification of action plan by BPR leader

73
Final action plan
 Core groups should…
• Highlight the limitations of some of the
existing processes and their adverse
impact on organizational performance.
• Explain the objectives and benefits of BPR
• Clarify the queries and doubts of those
affected by the introduction of
reengineering.

74
 Unclear knowledge of
Reengineering

• Why does a company

fail to reengineer a
process and end up
with minor
improvements?

75
5. Improper Monitoring of a Reengineered
process.

• A process or a system that initially

shows dramatic improvements has a
tendency to deteriorate unless ongoing
efforts are made to maintain and
improve it.
• A reengineered process needs constant
monitoring to ensure its desired level of
performance.

76
Ideal pattern of a Reengineered Process
IMPROVEMENT

BPR

BPR

BPR
TIME
77
 ACTUAL pattern of a Reengineered
Process WITHOUT MONITORING
IMPROVEMENT

BPR

BPR
BPR
BPR
TIME
78
 ACTUAL pattern of a
Reengineered Process WITH
MONITORING
IMPROVEMENT

BPR
BPR MONITORING
BPR MONITORING
MONITORING
BPR

TIME 79
 MONITORING…
• Monitoring is particularly relevant in
reengineering because people are used to
old ways of doing things.
• They are now required to unlearn many of the
old practices and adapt themselves to the
new ways of performing tasks because
reengineering demands new mode of thinking
and new ways to work.
• Sub-processes and tasks need constant
monitoring so that these are carried out in
accordance with the reengineered process.
80
 6. Wastage of time in Detailed process
Analysis
• Reengineering team spends too much
time in analyzing every minute detail of
the process and may find later that
many of these are eventually obliterated
or drastically modified.
• All they need is to have an overall
understanding of the tasks and their
relevance to the process as a whole.

81
 7. Fear of Failure

• BPR never succeeds in an organization

where the team members are afraid of
failure.
• It is a journey undertaken for the first
time.
• Fear of failure curbs the quality of
outcome and compels the BPR team to
settle for a solution which is sub-optimal
but safe.
82
 8.Unfavourable Organizational
environment

• Organization characterized by a large

majority of people who are skeptical and
apprehensive about BPR will find it extremely
difficult to succeed in its reengineering
activities.
• Top management should highlight the
deficiencies and inadequacies of the existing
processes through different means of
communication. 83
 Unfavorable…..

• Top management should convince the

middle and junior level managers
because they are the ones who are
directly affected by BPR.
• Convincing of supervisors, workers,
staff members by middle and junior
level managers.

84
 9. Delay in showing results

• Top management may loose interest if a

process takes longer time to show
results.
• Initial efforts should , therefore, focus on
those key processes that need little
investment and can be reengineered
quickly.

85
 10. Improper Appraisal System

• Rewards should commensurate with

efforts and the organization gain.
• Significant rewards makes others to
show their keenness to get involved in
reengineering.
• Appraisal should be in terms of their
contribution.

86
 11. Inability to quantify
Improvement
• Unless improvement resulting from
reengineering is measured and shown
in quantitative terms, people will not
attach much importance to it.
• Even in quantification, improvement
should be dramatic.

87
12.Complacency management

• Some one at top level with a vision or a

catalyst at junior level must take
initiative to convince top management
that what looks fine today may not be so
tomorrow.
• Reengineering is an ongoing
experiment.
88
 13. Non availability of Adequate
Resources
• Resource requirements in terms of
manpower, technology etc. should be
carefully enlisted.

89
14.Limited awareness amongst
employees

90
15.Discontinuance of Reengineering
after achieving Benchmark

91
 KLS Institute of Management Education and Research
Belgaum

Prof. Mahantesh B Halagatti-KLS IMER-Belgaum 92

 CHANGE MANAGEMENT

• BPR deviates from traditional function oriented vertical

organisational structure to process focused, team work
based horizontal organisational structure consisting of
cross-functional teams, task forces or project teams.

• Change is the one constant in any organisation.

• By managing change effectively, the managers can

control change instead of letting it control them.
• The current trend in organisational change is toward
development of learning organisation.

93
 Sources of change
• External sources: political, social,
technological, economic environment.

• Internal sources: managerial policies or

styles, systems and procedures,
processes, methods and employee
attitudes.

94
 Types of change
• Strategic :
• Structural:
• Process oriented:
• People oriented:

95
 Rates of change
• Evolutionary change

• Revolutionary change

96
 Forces for change
• Nature of the work force
• Technology
• Economic shocks
• Competition
• Social trends
• World politics

97
 The change sequence

Recognizing the need for change

Identifying the change method

FEED BACK

Unfreezing the status-quo

Moving to a new condition

Refreezing to create a new status quo

98
 TYPES OF CHANGE
• Work change
• Planned change/ Reactive change
• Technological change

99
 Resistance to change
• Resistance can be overt, implicit,
immediate, deferred.
• Change triggers rational and irrational
emotional reaction because of the
uncertainty involved.

Why do people resist change……?

100
 Reasons for resisting change :
• Parochial Self-Interest
• Misunderstanding and lack of trust
• Different assessments
• Low tolerance for change

101
Sources of resistance to change
• Insecurity
• Possible social loss
• Economic losses
• Inconvenience
• Resentment of control
• Unanticipated repercussions
• Threats to influence

102
Approaches for reducing resistance
to change
• Provide information in advance
• Encourage participation
• Guarantee against loss
• Make only necessary changes
• Attempt to maintain useful customs and informal
norms
• Build trust
• Provide counseling
• Allow for negotiation
103
 Why change efforts fail?
• Faulty thinking
• Inadequate process
• Lack of resources
• Lack of acceptance and commitment
• Lack of time and poor timing
• A resistant culture

104
 Innovation and change

• All innovations imply change, but not all

changes are innovations.

105
 Six step model for planned change
or innovation

PRESENTING A
PERCEIVING AN DIAGNOSING THE
PROPOSAL AND
OPPORTUNITY OR SITUATION AND
ADOPTING THE CHANGE
A PROBLEM GENERATING IDEAS
OR INNOVATION

1 2 3

6 5 4
PLANNING TO
MONITORING AND IMPLEMENTING OVERCOME
EVALUATING THE CHANGE OR RESISTANCE TO
RESULTS INNOVATION CHANGE OR
INNOVATION 106
 Managing change
• As change agents managers must be
committed to improve their organizations
performance.
• Change means making things different
whereas planned change involves
activities that are intentional and goal
oriented.

107
 What change agents can do?
Change agents can bring about changes in:

• Structure
• Technology
• Physical setting
• People

108
 Implementing change successfully
• By transformational leadership
• By use of group forces
• By providing a rationale for change
• By participation
• By sharing rewards
• By ensuring employee security
• By communication and education
• By stimulating employee readiness
109
Management of change in business
process reengineering
• Assembling a change management team
• Establishing a new direction for the organisation
• Preparing the organisation for change
• Setting up teams to implement change
• Aligning structures, systems and resources to
support change
• Identifying and removing road blocks to change
• Absorbing changes into the culture of the
organisation.
110
 KLS Institute of Management Education and Research
Belgaum

BENCHMARKING

Prof. Mahantesh B Halagatti-KLS IMER-Belgaum 111

 What is Benchmarking?
• Benchmarking is the continuous, Systematic
process of measuring one’s output and or work
processes against the toughest competitors or
those recognized best in the Industry.

112
 Meaning of Benchmarking.
• Benchmarking is a systematic method by
which organizations can measure themselves
against the best industry practices .
• “Benchmarking is the process of gathering
,analyzing and evaluating the world outside
your organization and comparing it to you
own.”

113
 Evolution of Benchmarking

Time Type Description

First Generation Reverse Engineering Reverse engineering (RE) is the process of

discovering the technological principles of
a device, object or system through analysis
of its structure, function and operation.

Second Generation Competitive Benchmarking Continuous process of comparing a firm's

practices and performance measures with
that of its most successful competitors.

Third Generation Process Benchmarking The initiating firm focuses its observation and
investigation of business processes with a
goal of identifying and observing the best
practices from one or more benchmark
firms.

Fourth Generation Strategic Benchmarking Involves observing how others compete.

Fifth Generation Global Benchmarking Benchmarking with the partners across the
globe
114
Helping to identify the current position of your business and
determine priorities for improving environmental performance.

Allowing comparisons with previous benchmarking profiles and

against recognized best practice.

Encouraging regular monitoring of progress and a programme

of continuous improvement.

Increasing the competitiveness of your company by

demonstrating environmental improvements to customers and
shareholders.

115
Four key steps in the application of
Benchmarking.
1. Understand in detail existing business
process.
2. Analyze business processes of others.
3. Compare own business performance with
that of others analyzed.
4. Implement the steps necessary to close the
performance gap.

116
 Sources for partners
• Direct competitors

• Functional leaders

• Internal operations

• Generic processes

117
 Types of
Benchmarking

118
 TYPES OF BENCHMARKING
• Strategic Benchmarking
• Performance or competitive Benchmarking
• Process Benchmarking
• Functional Benchmarking
• Internal Benchmarking
• External Benchmarking
• International Benchmarking

119
 Strategic Benchmarking
• Used where organization seek to improve
their overall performance by examining the
long term strategies and general approaches
that have enabled high performers to succeed.

• It involves considering high level aspects such

as core competencies, developing new
products and services, and improving
capabilities of dealing with changes in the
background environment.
120
 Performance or competitive
Benchmarking
¾ Used where organization consider their position in
relation to performance characteristic of key products
and services.

¾ Benchmarking partners are drawn from the same

sector.

¾ It is common for companies in the commercial World

to undertake this type of benchmarking through trade
associations or third parties to protect confidentiality.
121
 Process Benchmarking
• It is used when the focus is on improving
specific critical process and operations.

• Benchmarking partners are sought from best

practice organizations that perform similar
work or deliver similar services.

• Process benchmarking invariably involves

producing process maps to facilitate
comparison and analysis 122
 Process Benchmarking…..

The initiating firm focuses its observation and

investigation of business processes with a
goal of identifying and observing the best
practices from one or more benchmark firms.
Activity analysis will be required where the
objective is to benchmark cost and efficiency;
increasingly applied to back-office processes
where outsourcing may be a consideration.

123
 Functional Benchmarking
• A company will focus its benchmarking on a single
function in order to improve the operation of that
particular function. Complex functions such as
Human Resources, Finance and Accounting and
Information and Communication Technology are
unlikely to be directly comparable in cost and
efficiency terms and may need to be disaggregated
into processes to make valid comparison.
• Used when organization look to benchmark with
partners drawn from different business sectors .
• This sort of benchmarking can lead to innovation and
dramatic improvements. 124
 Internal Benchmarking
• This involves seeking partners from within the
same organization .
• Advantages of internal benchmarking are that :
9Access to sensitive data and information is
easier.
9standardized data is often readily available.
9 less time and resources are needed.

125
 External Benchmarking
• This involves seeking outside organizations
that are known to be the best in class.
• This type of benchmarking may take up more
time and resources to ensure the comparability
of data and information, credibility of findings
and development of sound recommendations.

126
 International Benchmarking
• This benchmarking is used where the partners
are sought from other countries because best
practitioners are located else where in the
world .
• Globalization and advances in information
technology are increasing opportunities for
international projects.

127
 Process of
Benchmarking

128
 Process of Benchmarking
• Stage 1 : Planning the Benchmarking Project.

• Stage 2 : Form the Benchmarking team.

• Stage 3 : Collect the necessary data.

• Stage 4 : Analyzing the data for performance gaps.

• Stage 5 : Take action and recycle the process

129
Stage 1 : Planning the Benchmarking Project.

Plan the exercise.

Objective of planning stage of benchmarking is to

determine what to benchmark.

To identify the strategic intent of the business unit being

benchmarked.

To improve performance through benchmarking.

To select the processes to benchmark.

The key to determining what to benchmark lies in

identifying the output or out come of the business unit.
130
Selecting the critical success factors.
 Stage 2 : Form the Benchmarking team.

• Objective of this stage is to select , train and manage

the benchmarking team.

• A team represents different perspectives, special skills

that individual bring to the benchmarking process.

• There are 3 types of teams required for benchmarking

exercise :
1) The lead team
2) The preparation team
3) The visit team
131
 Stage 3 : Collect the necessary data.

• To identify best practice companies and gather

benchmarking information about their
performance and practices.
• This stage involves collection of information
regarding:-.
1) How do you currently perform the
process?
2) How does your benchmarking
partner perform the process?
3) Site visit. 132
 Stage 4 : Analyzing the data for performance
gaps.

• To identify and analyze the gaps between the

best practices and your own business process.
• All the collected information is used to
identify performance gaps between
benchmarking partners.

133
 Stage 5 : Take action and recycle the process

• To develop strategies and action plans to

bridge the gaps.
• Identify tasks, responsibilities, resources and
time targets and for the change process.
• Prepare cost benefit analysis.

134
Advantages and
Limitations of
Benchmarking

135
 Advantages of Benchmarking
• Helping to identify the current position of your
business and determining priorities for improving
environmental performance.

• Allowing comparisons with previous benchmarking

profiles and against recognized the best practices.

• Encouraging regular monitoring of progress and a

programmed of continuous improvement.

• Increasing the competitiveness of your company by

demonstrating environmental improvements to
customers and shareholders.
136
 Limitations of Benchmarking
• Weakness in planning and implementation can lead to
failure of the process.

• Communication failure between partners can occur.

• Process may not be successful if the goal is too ambitious.

• Some organizations do not benchmark because their

weaknesses are exposed.

• There might be cultural difficulties in transferring “best

practices” in multilateral organizations.

137
Benchmarking Costs

138
 Costs are :
• Visit Costs

• Time Costs

• Benchmarking Database Costs

139
 Visit costs
• This cost includes hotels rooms, travel
costs, meals, a token gift and lost labor
time.

140
 Time cost
• Members of the benchmarking team will
be investing time in researching problems
finding exceptional companies to study,
visits and implementation.

141
 Benchmarking database costs
• Organizations that institutionalize
benchmarking into their daily procedure
find it is useful to create and maintain a
database of best practices and the
companies associated with each best
practice.

142