No Benchmarking in LOs LO7731

Dr. Ivan Blanco (BLANCO@BU4090.BARRY.EDU)
Tue, 4 Jun 1996 12:21:24 -0400 (EDT)

Replying to LO7591 --

> From: Wilson K Maj 12AF/QI <wilsonk@hq12af.dm.af.mil>
> Date: Fri, 24 May 96 08:44:00 PDT

<<< some deletions here >>>

> Replying to LO7556: Ivan wrote, "Those who rely too much on benchmarking
> might end up always looking at the behind of the company in front of you!"
>
> A similar topic came up on another listing. I thought I would respond
> with my posting to Ivan's words.
>
> "My comments may sound confrontational, Kim, and they are. . . These
> strike me as architypically military phrases and military methods. There
> is a limited return available from fitting good ideas from one domain
> (business) into the already existing paradigm of another domain (the
> military) . . ."

<<< some more deletions >>>
> The whole purpose of comparison and benchmarking
> is finding those "best practices" that exist and adapting (not adopting)
> them to your organization or unit and improving upon those practices. I
> thought this was one of main principles of quality improvement! Notice I
> made a distinction between adapting and adopting.

My comments were based on how many organizations practice
benchmarking. The way I see it, it has become contaminated by our
tendency to take short cuts. WHat I have seen in some reports in popular
publications (Business Week, Fortune, The WST, etc.), is that what many
mangers call benchmarking is simply adopting! This is youir point.

As a follower of TQM/CQI as one of tht tools in organizational
learning, I totally agree with you in that the study and analysis of the
best practices applied not only by your direct competitors, but by
unrelated organizations as well, is a powerful learning tool. I advocate
that too, but I do not call it benchmarking.

> This distinction is
> what allowed Southwest Airlines to develop quick aircraft turn times at
> the gate by "benchmarking" an Indy 500 pit crew. With your thoughts as
> expressed by your e-mail, these two businesses should not have
> participated in benchmarking because they are totally different. Another
> example is the Prussian Army (of WWI times?) looking for ways to more
> effectively conduct troop movement and using a circus as their example to
> study and learn from.
>

Yes, and Southwest Airlines analized the pit crew practices very well.
They did not adopt as you say, because it would have been too inefficient
for them to do so. The pit crew operating cost is not a major concern,
for the S.A. it is.
<<< lots of good stuff deleted here >>>

>
> Dr. Carla O'Dell, President of American Productivity & Quality Center, has
> said "Benchmarking is the practice of being humble enough to admit that
> someone else is better at something, and being wise enough to learn how to
> match and even surpass them at it." This is what I am trying to do!
>
> Benchmarking or comparison is just another tool to help improve your
> processes by adapting the best practices of others and improving upon
> them.

Again, my problem is one of applications. How many organizations
out there practice Benchmarking with the understanding that it is what Dr.
O'Dell says it is? An example I use a lot in classes and other
facilitating opportunities is Xerox. I see them as people who really
understand comparisons (benchmarking) as a learning tool.

The humbleness condition reminds me of a story told by a person in
charge of the GTE's effort to improve. In a conference of the Connecticut
Quality Council, this person told us that it took his company almost four
years and three big consulting companies to recognize that they were a
"bad" corporation. Business Week published in article in 1980 calling GTE
one of the worse corporations in the U.S. After struggling with they hired
a consulting company to check on that. This consultants confirmed the
analysis presented by BW. THey got fired! Two other consulting companies
went the same way. Finally, in 1984, the company accepted the judgement
as the right description of the company, and decided to change... (could
not find the name of the GTE executive).

"Do not follow where the path may lead. Go instead where
there no path and leave a trail." - Anonymous.

-- Ivan,

--

*************************************************************** R. IVAN BLANCO, Ph.D. Voice 305 899-3515 Assoc. Prof. & Director Fax 305 892-6412 International Business Programs Andreas School of Business _________E-Mail Addresses________ Barry University Bitnet: Blanco%bu4090@Barryu Miami Shores, FL 33161-6695 Internet: Blanco@bu4090.barry.edu <<<<< ---------------- >>>>> "Si un hombre fuera necesario para sostener el Estado, este Estado no deberia existir." "If one man were necessary to sustain a Nation, this Nation should not exist." Simon Bolivar ===============================================================

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