BENCHMARKING

Performances Measurement And Sharing

The Reward Resulting From Improved
Performance

2013
INTRODUCTION
What is Benchmarking?

What is a Benchmark?

What is a Key
Performance Indicator
(KPI)?
 USING A KEY PERFORMANCE
INDICATOR
In order to define the KPIs throughout the
life cycle of a project, five key stages have
been identified.
Stage 2: Commit to Construct the point at
which the client authorises the project team to
start the construction project;
Stage 3: Available for Use the point at which
the project is available for substantial
occupancy or use. This may be in advance of
the completion of the project;
 USING A KEY PERFORMANCE
INDICATOR
Stage 4: End of the Defects Liability Period
the pOoint at which the period within the
construction contract during which the
contractor is obliged to rectify defect ends
(often 12 months from stage 3);
Stage 5: End of Lifetime of Project the point
at which the period over which the project is
employed in its original or near original
purpose ends. As this is usually many years
after the projects completion, this is a
theoretical point over which such concepts as
 TYPES OF BENCHMARKING
Benchmarking can take the form of several
different type:
1.Internal Benchmarking a comparison of
internal operations such as one site (or project
team) against another within the same
company;
2.Competitive Benchmarking a comparison
against a specific competitor for the product,
service or function of interest;
3.Generic Benchmarking a comparison of
business functions or processes that are the
 The Benefits of Benchmarking in
the Construction Industry
Benefits include:
1.Better performance in meeting customer
needs & requirements;
2.Establishing effective business goals and
objectives;
3.Measuring true productivity;
4.Becoming competitive;
5.Identifying & implementing best practice in
business processes.
 WHAT DOES SUCCESSFUL
BENCHMARKING REQUIRE?
In practice, the main requirements
for success are:
1.A strong and active commitment from
senior management to lead and
implement the benchmarking process;
2.A willingness to change and adapt
based on the benchmarking findings;
3.A realisation that the competition is
constantly changing;
 WHAT DOES SUCCESSFUL
BENCHMARKING REQUIRE?

4. An openness to new ideas, creativity

and innovativeness in their application
to existing processes;
5. A continuous benchmarking effort;
6. A willingness to share information with
benchmarking partners (e.g. other
organisations).
THE BENCHMARK THEMES
 BUSINESS PROCESS
IMPROVEMENT
Commonly accepted factors of
measuring business
excellence:
1.Leadership;
2.Policy & Strategy;
3.People management;
4.People satisfaction;
5.Resource management;
6.Business Process;
7.Customer satisfaction;
 WHAT ARE THE SIDE EFFECTS TO
SUCCESSFUL BENCHMARKING?

Benchmarking has some inadequacies

which must be clearly recognised and
understood before continuing the
exercise:
1.Don't try and benchmark too many things to
begin with. Select two or three key areas, and
then gradually add others over time;
2.Don't waste time benchmarking things that
are just "nice to know". Every benchmark should
aim to improve performance in an area that
 WHAT ARE THE SIDE EFFECTS TO
SUCCESSFUL BENCHMARKING?

4. Be precise in defining what is to be

measured. A lack of clarity can lead on
confusing an inappropriate benchmarks;
5. Test the benchmarks internally before
consulting with outside companies;
6. Remember that your organisation's priorities
may change with time, and so your
benchmarks should be regularly reviewed
(and changed if necessary) to reflect this.
 5 STEPS TO SUCCESSFUL
BENCHMARKING
The five key steps in the benchmarking process
are:
Plan: Clearly establish what needs to be improved
make sure it is important to you and your customers
and determine the data collection methodology to be
used (including any KPIs).
Analysis: Gather the data and determine the current
performance gap - against a competitor, the industry
or internally and identify the reasons for the
difference.
Action: Develop and implement improvement plans &
performance targets.
Review: Monitor performance against the performance
targets.