Benchmarking in Project Management - Revision history

Tkokotas at 15:27, 18 December 2018

2018-12-18T15:27:23Z

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			''Developed by Dimitrios Makris''


	Nowadays, [https://en.wikipedia.org/wiki/Project_management ''project management''] tools and methodologies have been highly useful for organizations that seek to implement changes in order to increase their performance. Adding to that, organizations are constantly striving to find new opportunities to increase their effectiveness as much as possible. One of these opportunities is to examine the outcomes and the lessons learnt from various similar projects that have been completed in the market from similar organizations and thus, use benchmarking.		Nowadays, [https://en.wikipedia.org/wiki/Project_management ''project management''] tools and methodologies have been highly useful for organizations that seek to implement changes in order to increase their performance. Adding to that, organizations are constantly striving to find new opportunities to increase their effectiveness as much as possible. One of these opportunities is to examine the outcomes and the lessons learnt from various similar projects that have been completed in the market from similar organizations and thus, use benchmarking.

Dimak at 16:57, 28 September 2015

2015-09-28T16:57:39Z

Dimak: /* Benchmarking in general */

2015-09-28T11:33:08Z

Benchmarking in general

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	It has been proved that benchmarking against companies that have a leading role in the industry has effectively helped average organizations to improve their performance. <ref name="Luu V.T, Kim S.Y and Huynh T.A (2008)">Luu V.T, Kim S.Y and Huynh T.A. (2008), ''Improving project management performance of large contractors using benchmarking approach'' International Journal of Project Management, vol.26, pp. 758-769</ref> Based on that, this article will present how improvements in the performance of companies can be achieved by benchmarking projects. This article will firstly explore the general purpose of benchmarking. Then, it will be examined how the distinct types of benchmarking can be applied to the management of projects. Furthermore, there will be a discussion on what to benchmark and what aptitudes are needed to do so. Finally, an analysis about the limitations of benchmarking in project management will be held.		It has been proved that benchmarking against companies that have a leading role in the industry has effectively helped average organizations to improve their performance. <ref name="Luu V.T, Kim S.Y and Huynh T.A (2008)">Luu V.T, Kim S.Y and Huynh T.A. (2008), ''Improving project management performance of large contractors using benchmarking approach'' International Journal of Project Management, vol.26, pp. 758-769</ref> Based on that, this article will present how improvements in the performance of companies can be achieved by benchmarking projects. This article will firstly explore the general purpose of benchmarking. Then, it will be examined how the distinct types of benchmarking can be applied to the management of projects. Furthermore, there will be a discussion on what to benchmark and what aptitudes are needed to do so. Finally, an analysis about the limitations of benchmarking in project management will be held.

	=='''Benchmarking in ~~general~~'''==		=='''Benchmarking in General'''==

	==='''Definition'''===		==='''Definition'''===

Dimak: /* General purpose of Benchmarking */

2015-09-28T11:32:51Z

General purpose of Benchmarking

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	Another definition of benchmarking was suggested from the International Benchmarking Clearinghouse (IBC) Design Steering Committee, which concluded in 1992 that benchmarking is: “''A systematic and continuous measurement process; a process of continuously measuring and comparing an organization’s business processes against business process leaders anywhere in the world to gain information which will help the organization take action to improve its performance'' ”. <ref name="American Productivity & Quality(APQC) (1992)"> American Productivity & Quality(APQC). (1992), ''Planning, Organizing, and Managing Benchmarking Activities: A User’s Guide'', APQC, Houston, TX </ref>		Another definition of benchmarking was suggested from the International Benchmarking Clearinghouse (IBC) Design Steering Committee, which concluded in 1992 that benchmarking is: “''A systematic and continuous measurement process; a process of continuously measuring and comparing an organization’s business processes against business process leaders anywhere in the world to gain information which will help the organization take action to improve its performance'' ”. <ref name="American Productivity & Quality(APQC) (1992)"> American Productivity & Quality(APQC). (1992), ''Planning, Organizing, and Managing Benchmarking Activities: A User’s Guide'', APQC, Houston, TX </ref>

	==='''General ~~purpose~~ of Benchmarking'''===		==='''General Purpose of Benchmarking'''===

	[[File:Plan_do_check_act.PNG\|thumb\|upright=3\|'''Figure 1''': Deming's Benchmarking Cycle]]		[[File:Plan_do_check_act.PNG\|thumb\|upright=3\|'''Figure 1''': Deming's Benchmarking Cycle]]

Dimak: /* Metrics for Effective Benchmarking in Project Management */

2015-09-28T11:32:01Z

Metrics for Effective Benchmarking in Project Management

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	Some of the common metrics that are suggested for effective benchmarking in project management are <ref name="Davies (2003)"> Cooke-Davies T. et al (2003), ''Effective Benchmarking for Project Management'', Courtesy of the Project Management Institute, Compliments of Microsoft Business Solutions, and Project Management Institute </ref>:		Some of the common metrics that are suggested for effective benchmarking in project management are <ref name="Davies (2003)"> Cooke-Davies T. et al (2003), ''Effective Benchmarking for Project Management'', Courtesy of the Project Management Institute, Compliments of Microsoft Business Solutions, and Project Management Institute </ref>:

	* '''Project ~~cost~~'''		* '''Project Cost'''

	Organizations should have a spherical knowledge on how much is invested in project management. To do that they must keep track of various cost factors such as:		Organizations should have a spherical knowledge on how much is invested in project management. To do that they must keep track of various cost factors such as:

Dimak at 21:55, 27 September 2015

2015-09-27T21:55:42Z

Dimak: /* What to Benchmark */

2015-09-27T19:30:33Z

What to Benchmark

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	Subsequently, there is a variety of sources and opinions on what to benchmark. Though, only if a common ground on what are the needed skills and competencies of a manager is created, will benchmarking become generally acceptable. So far, the only agreement is on an agreeable generic benchmark evaluation of project managers' competencies.		Subsequently, there is a variety of sources and opinions on what to benchmark. Though, only if a common ground on what are the needed skills and competencies of a manager is created, will benchmarking become generally acceptable. So far, the only agreement is on an agreeable generic benchmark evaluation of project managers' competencies.

	====Metrics for Effective Benchmarking in Project Management====		===='''Metrics for Effective Benchmarking in Project Management'''====

	Taking into account what was presented above, it is clear that there are no universal [https://en.wikipedia.org/wiki/Performance_metric ''metrics''] for the project management processes. It is therefore essential that each organization selects performance indicators that suit its own particular strategies and situations the best.		Taking into account what was presented above, it is clear that there are no universal [https://en.wikipedia.org/wiki/Performance_metric ''metrics''] for the project management processes. It is therefore essential that each organization selects performance indicators that suit its own particular strategies and situations the best.

Dimak: /* What to Benchmark */

2015-09-27T18:40:27Z

What to Benchmark

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	Even though the scope of Atkinson's method is logical, substantial disaggregation will still be needed for benchmarking the management of a specific project.		Even though the scope of Atkinson's method is logical, substantial disaggregation will still be needed for benchmarking the management of a specific project.

	As other researchers claim <ref name="Belout A. (1998)"> Belout A. (1998), ''Eﬀects of human resource management on project eﬀectiveness and success: toward a new conceptual framework'', International Journal of Project Management, Vol. 16, pp.21-26 </ref>, the key areas of interest, when evaluating the management of a project, are eﬀectiveness and eﬃciency. Eﬃciency can be defined as the maximization of the output for a given level of input while eﬀectiveness is directed to the level of achievement of goals or targets.		As other researchers claim <ref name="Belout A. (1998)"> Belout A. (1998), ''Eﬀects of human resource management on project eﬀectiveness and success: toward a new conceptual framework'', International Journal of Project Management, Vol. 16, pp.21-26 </ref>, the key areas of interest when evaluating the management of a project, are eﬀectiveness and eﬃciency. Eﬃciency can be defined as the maximization of the output for a given level of input while eﬀectiveness is directed to the level of achievement of goals or targets.

	Subsequently, there is a variety of sources and opinions on what to benchmark. Though, only if a common ground on what are the needed skills and competencies of a manager is created, will benchmarking become generally acceptable. So far, the only agreement is on an agreeable generic benchmark evaluation of project managers' competencies.		Subsequently, there is a variety of sources and opinions on what to benchmark. Though, only if a common ground on what are the needed skills and competencies of a manager is created, will benchmarking become generally acceptable. So far, the only agreement is on an agreeable generic benchmark evaluation of project managers' competencies.

Dimak: /* Limitations */

2015-09-27T18:36:58Z

Limitations

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	Benchmarking the management of projects has its own limitations that support the fact that is not always a good idea to introduce evaluation through benchmarking. First of all, projects are by nature unique and have a specific life-cycle. Hence, it is difficult to find common ground among ~~projects~~. The uniqueness of projects is mirrored in the way they are managed, which is something that increases the complexity to identify the best management practices among them.		Benchmarking the management of projects has its own limitations that support the fact that is not always a good idea to introduce evaluation through benchmarking. First of all, projects are by nature unique and have a specific life-cycle. Hence, it is difficult to find common ground among them. The uniqueness of projects is mirrored in the way they are managed, which is something that increases the complexity to identify the best management practices among them.

	Moreover, another limitation can be that benchmarking is lacking effectiveness when a problem that has not been previously recognized has to be encountered. If for instance a managerial aspect is facing a diﬃculty and the comparable partner has not experienced that kind of diﬃculty before, then it is most probable that a benchmarking process will not provide any feasible solution.		Moreover, another limitation can be that benchmarking is lacking effectiveness when a problem that has not been previously recognized has to be encountered. If for instance a managerial aspect is facing a diﬃculty and the comparable partner has not experienced that kind of diﬃculty before, then it is most probable that a benchmarking process will not provide any feasible solution.

	Furthermore, it is obvious that benchmarking is based on expense, meaning that it requires excessive time and cost of gathering and evaluating performance data. As a result, this can consume a vast number of resources and at the same moment waste a great amount of time. For example, the process of finding the right company to benchmark the right aspects of management can be time and money consuming. Adding to that, benchmarking is based on sharing knowledge and creating ~~thrust~~ among the distinct organizations which might in the end cultivate unwillingness to cooperate and raise suspicions.		Furthermore, it is obvious that benchmarking is based on expense, meaning that it requires excessive time and cost of gathering and evaluating performance data. As a result, this can consume a vast number of resources and at the same moment waste a great amount of time. For example, the process of finding the right company to benchmark the right aspects of management, can be time and money consuming. Adding to that, benchmarking is based on sharing knowledge and creating trust among the distinct organizations which might in the end cultivate unwillingness to cooperate, and raise suspicions.

	Different factors and their interrelationships during a project can also be a limitation, and have a significant effect on its management. It is almost impossible to manage all of these factors during a large and complex project and thus it is crucial to separate the important few for the trivial many. ~~This means that~~ a manager should waste time to clearly identify the "key factors" that will ~~have the greatest~~ impact on the success of the project.		Different factors and their interrelationships during a project can also be a limitation, and have a significant effect on its management. It is almost impossible to manage all of these factors during a large and complex project and thus it is crucial to separate the important few for the trivial many. As a reflection, the manager should waste time to clearly identify the "key factors" that will impact the success of the project the most.

	Finally, benchmarking has often been found problematic because it only highlights the performance gaps between organizations, without giving the reasons that led to these gaps. This can be explained by the fact that these performance gaps, identified through benchmarking, are more connected with the diﬀerences in the way the distinct organizations measure and track the performance of their systems. On the contrary, they do not focus that much on pointing out any significant inequalities on how a manager should control a specific project.		Finally, benchmarking has often been found problematic because it only highlights the performance gaps between organizations, without giving the reasons that led to these gaps. This can be explained by the fact that these performance gaps, identified through benchmarking, are more connected with the diﬀerences in the way the distinct organizations measure and track the performance of their systems. On the contrary, they do not focus that much on pointing out any significant inequalities on how a manager should control a specific project.

	All these limitations ~~that were mentioned above~~ can be counterbalanced ~~somewhat,~~ by the various benefits that arise from benchmarking ~~that~~ lead to reciprocal benefits for everyone involved in this process.		All these limitations though, can be counterbalanced by the various benefits that arise from benchmarking and can lead to reciprocal benefits for everyone involved in this process.

	=='''Conclusion'''==		=='''Conclusion'''==

Dimak: /* Conclusion */

2015-09-27T18:27:23Z

Conclusion

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	'''‘‘''Considering the role of world-class performers through benchmarking and adopting their principles is just one tool in the improvement process''’’'''. <ref name="Maylor H. (2005)"></ref>		'''‘‘''Considering the role of world-class performers through benchmarking and adopting their principles is just one tool in the improvement process''’’'''. <ref name="Maylor H. (2005)"></ref>

	The above statement, is made in the context of gaining the maximum benefit from a project not only in outcomes for the immediate project but also by improving the performance of management in future projects. This maximum benefit can be partially obtained by giving effective evaluations regarding the quality of project management.		The above statement, is made in the context of gaining the maximum benefit from a project, not only in outcomes for the immediate project, but also by improving the performance of management in future projects. This maximum benefit can be partially obtained by giving effective evaluations regarding the quality of project management.

	As it was mentioned earlier, there is no single benchmark that will cover all the aspects of project management evaluation. The only way to achieve optimal results while benchmarking the management of a project ~~whould~~ be to use the right criteria for each aspect of the management process that undergoes evaluation.		As it was mentioned earlier, there is no single benchmark that will cover all the aspects of project management evaluation. The only way to achieve optimal results, while benchmarking the management of a project, would be to use the right criteria for each aspect of the management process that undergoes evaluation.

	Regardless of the various limitations of ~~using~~ effective benchmarking project management practices it is expected that ~~the use of~~ this evaluation tool will ~~increase~~ in the near future. The markets are constantly changing, with speed and top performance ~~describing~~ competition. <ref name="Razmi J. (2000)"> Razmi J. (2000), ''The application of graphical techniques in evaluating benchmarking partners'', Benchmarking: An international Journal, Vol. 7, pp. 1-7 </ref> Customers nowadays are becoming more aware on what to expect, and as a result they raise their demand standards. Furthermore, changes can be unexpected and difficult to measure which will eventually make it apparent for organizations to redesign and reconsider their processes, their products and their services. In such a volatile environment they should be dexterous and agile in order to handle changes. That is where a manager should demonstrate its virtues and work hand in hand with the organization to institute change. At the end of the day, evaluation is more than vital in pursuance of a positive change and successful projects.		Regardless of the various limitations that the use of effective benchmarking project management practices has, it is expected that this evaluation tool will be widely used in the near future. The markets are constantly changing, with speed and top performance being the main elements that characterize competition. <ref name="Razmi J. (2000)"> Razmi J. (2000), ''The application of graphical techniques in evaluating benchmarking partners'', Benchmarking: An international Journal, Vol. 7, pp. 1-7 </ref> Customers nowadays are becoming more aware on what to expect, and as a result they raise their demand standards.

	One of the principal characteristics of project management is that a change is demonstrated in the system. Adding to that, evaluation ~~give~~ the opportunity ~~to the project manager~~ to look at what was done well, what was done poorly and identify any future improvements that can be done in possible future projects. The nature of project management is that it is transitory and lays the ground for quick change but it is crucial to know where this will lead. Benchmarking as an evaluation tool can lead to this direction.		Furthermore, changes can be unexpected and difficult to measure, something that will eventually make it apparent for organizations to redesign and reconsider their processes, their products and their services. In such a volatile environment, they should be dexterous and agile in order to handle changes. That is where a manager should demonstrate its virtues, and work hand in hand with the organization to institute change. At the end of the day, evaluation is more than vital in pursuance of a positive change and successful projects.

			One of the principal characteristics of project management is that a change is demonstrated in the system. Adding to that, evaluation gives project manager the opportunity to look at what was done well, what was done poorly and identify any future improvements that can be done in possible future projects. The nature of project management is that it is transitory and lays the ground for quick change but it is crucial to know where this will lead. Benchmarking as an evaluation tool can lead to this direction.

	=='''References'''==		=='''References'''==
	<references/>		<references/>

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	Nowadays, [https://en.wikipedia.org/wiki/Project_management ''project management''] tools and methodologies have been highly useful for organizations that seek to implement changes in order to increase their performance. Adding to that, organizations are constantly striving to find new opportunities to increase their effectiveness as much as possible. One of these opportunities is to examine the outcomes and the lessons learnt from various similar projects that have been completed in the market from similar organizations and thus, use benchmarking.		Nowadays, [https://en.wikipedia.org/wiki/Project_management ''project management''] tools and methodologies have been highly useful for organizations that seek to implement changes in order to increase their performance. Adding to that, organizations are constantly striving to find new opportunities to increase their effectiveness as much as possible. One of these opportunities is to examine the outcomes and the lessons learnt from various similar projects that have been completed in the market from similar organizations and thus, use benchmarking.

	As a business term, [https://en.wikipedia.org/wiki/Benchmarking ''benchmarking''] is the series of actions in order to compare a business' distinct processes, practices or procedures, to other businesses with similar activities and have a leading role in the world market. Benchmarking is mainly used so that a company gains valuable information in pursuance of improving its performance and, as a natural outcome, to increase its competitiveness. Usually, there are different [https://en.wikipedia.org/wiki/Performance_indicator ''indicators''] that companies use to assess their performance during the process of benchmarking. These indicators, mainly focus on the aspects of time, cost and quality.		As a business term, [https://en.wikipedia.org/wiki/Benchmarking ''benchmarking''] is the series of actions in order to compare a business' distinct processes, practices or procedures, to other businesses with similar activities, and have a leading role in the world market. Benchmarking is mainly used so that a company gains valuable information in pursuance of improving its performance and, as a natural outcome, to increase its competitiveness. Usually, there are different [https://en.wikipedia.org/wiki/Performance_indicator ''indicators''] that companies use to assess their performance during the process of benchmarking. These indicators, mainly focus on the aspects of time, cost and quality.

	It has been proved that benchmarking against companies that have a leading role in the industry has effectively helped average organizations to improve their performance. <ref name="Luu V.T, Kim S.Y and Huynh T.A (2008)">Luu V.T, Kim S.Y and Huynh T.A. (2008), ''Improving project management performance of large contractors using benchmarking approach'' International Journal of Project Management, vol.26, pp. 758-769</ref> Based on that, this article will present how improvements in the performance of companies can be achieved by benchmarking projects. This article will firstly explore the general purpose of benchmarking. Then, it will be examined how the distinct types of benchmarking can be applied to the management of projects. Furthermore, there will be a discussion on what to benchmark and what aptitudes are needed to do so. Finally, an analysis about the limitations of benchmarking in project management will be held.		It has been proved that benchmarking against companies that have a leading role in the industry has effectively helped average organizations to improve their performance. <ref name="Luu V.T, Kim S.Y and Huynh T.A (2008)">Luu V.T, Kim S.Y and Huynh T.A. (2008), ''Improving project management performance of large contractors using benchmarking approach'' International Journal of Project Management, vol.26, pp. 758-769</ref> Based on that, this article will present how improvements in the performance of companies can be achieved by benchmarking projects. This article will firstly explore the general purpose of benchmarking. Then, it will be examined how the distinct types of benchmarking can be applied to the management of projects. Furthermore, there will be a discussion on what to benchmark and what aptitudes are needed to do so. Finally, an analysis about the limitations of benchmarking in project management will be held.
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	==='''Definition'''===		==='''Definition'''===

	Benchmarking is a constant process of analysis and research among the best performers in order to ~~extrude~~ useful information for improving the organizational or project performance of a company, and not just ~~copy~~ or ~~imitate~~ what others do to thrive. As Bent and Humphrey suggest about benchmarking, ‘‘''Benchmarking is the technical core of the Total Quality Management (TQM) process. It identifies the quality of current personal skill levels and company procedures/methods, and then compares this quality with the latest state-of-the-art techniques''’’. <ref name="Bent J, Humphreys K (1996)"> Bent J., Humphreys K. (1996), ''Eﬀective project management through applied cost and schedule control'', Marcel Dekker, New York </ref>		Benchmarking is a constant process of analysis and research, among the best performers, in order to extract useful information for improving the organizational or project performance of a company, and not just copying or imitating what others do to thrive. As Bent and Humphrey suggest about benchmarking, ‘‘''Benchmarking is the technical core of the Total Quality Management (TQM) process. It identifies the quality of current personal skill levels and company procedures/methods, and then compares this quality with the latest state-of-the-art techniques''’’. <ref name="Bent J, Humphreys K (1996)"> Bent J., Humphreys K. (1996), ''Eﬀective project management through applied cost and schedule control'', Marcel Dekker, New York </ref>

	Another definition of benchmarking was suggested from the International Benchmarking Clearinghouse (IBC) Design Steering Committee, which concluded in 1992 that benchmarking is: “''A systematic and continuous measurement process; a process of continuously measuring and comparing an organization’s business processes against business process leaders anywhere in the world to gain information which will help the organization take action to improve its performance'' ”. <ref name="American Productivity & Quality(APQC) (1992)"> American Productivity & Quality(APQC). (1992), ''Planning, Organizing, and Managing Benchmarking Activities: A User’s Guide'', APQC, Houston, TX </ref>		Another definition of benchmarking was suggested from the International Benchmarking Clearinghouse (IBC) Design Steering Committee, which concluded in 1992 that benchmarking is: “''A systematic and continuous measurement process; a process of continuously measuring and comparing an organization’s business processes against business process leaders anywhere in the world to gain information which will help the organization take action to improve its performance'' ”. <ref name="American Productivity & Quality(APQC) (1992)"> American Productivity & Quality(APQC). (1992), ''Planning, Organizing, and Managing Benchmarking Activities: A User’s Guide'', APQC, Houston, TX </ref>
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	It is clear from these definitions that benchmarking is not only a process in which performance, compared to others, can be measured, but also a tool to describe how notable performance can be accomplished. This kind of performance can be described by measures of performance indicators, called '''benchmarks'''. The activities that are used in order to achieve this performance are called enablers <ref name="Camp, R. (1989)"> Camp, R. (1989), ''Benchmarking: The search for industry best practices that lead to superior performance'', ASQC Quality Press, Milwaukee </ref> and their main purpose is to analyze the logic for reaching this kind of notable performance. Usually, benchmarking studies are conducted by taking into account these two components and thus, it can be stated that benchmarks can be attained by acquiring the right enablers.		It is clear from these definitions that benchmarking is not only a process in which performance, compared to others, can be measured, but also a tool to describe how notable performance can be accomplished. This kind of performance can be described by measures of performance indicators, called '''benchmarks'''. The activities that are used in order to achieve this performance are called enablers <ref name="Camp, R. (1989)"> Camp, R. (1989), ''Benchmarking: The search for industry best practices that lead to superior performance'', ASQC Quality Press, Milwaukee </ref> and their main purpose is to analyze the logic for reaching this kind of notable performance. Usually, benchmarking studies are conducted by taking into account these two components and thus, it can be stated that benchmarks can be attained by acquiring the right enablers.

	As part of the benchmarking process, many models and approaches have been used but they all take into consideration an iterative benchmarking process proposed by W.E Deming known as the “'''Deming ~~cycle~~'''”. The Deming cycle includes a minimum of four phases: [https://en.wikipedia.org/wiki/PDCA ''Plan–Do-Check-Act'']. This is presented in Figure 1.		As part of the benchmarking process, many models and approaches have been used but they all take into consideration an iterative benchmarking process proposed by W.E Deming known as the “'''Deming Cycle'''”. The Deming cycle includes a minimum of four phases: [https://en.wikipedia.org/wiki/PDCA ''Plan–Do-Check-Act'']. This is presented in Figure 1.

	=='''Types and Generations of Benchmarking'''==		=='''Types and Generations of Benchmarking'''==
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	Furthermore, the '''second generation''', or as called '''“Competitive Benchmarking”''', involved comparisons of processes with those of the competitors. The '''“Process Benchmarking”''', which was the '''third generation''' of benchmarking, suggested that comparisons were developed outside the environment of the organization. Adding to that, evaluations mostly targeted companies with recognized strong practices, regardless of the industry and the competitors. The '''fourth generation''' is referred as '''“Strategic Benchmarking”''' and is the systematic process of the assessment of numerous alternatives, the implementation of strategies and the improvement of performance. This can be achieved by trying to understand and adapt to successful strategies that external partners, who participate in an ongoing business alliance, use.		Furthermore, the '''second generation''', or as called '''“Competitive Benchmarking”''', involved comparisons of processes with those of the competitors. The '''“Process Benchmarking”''', which was the '''third generation''' of benchmarking, suggested that comparisons were developed outside the environment of the organization. Adding to that, evaluations mostly targeted companies with recognized strong practices, regardless of the industry and the competitors. The '''fourth generation''' is referred as '''“Strategic Benchmarking”''' and is the systematic process of the assessment of numerous alternatives, the implementation of strategies and the improvement of performance. This can be achieved by trying to understand and adapt to successful strategies that external partners, who participate in an ongoing business alliance, use.

	More specific, strategic benchmarking is about trying to compare a competitor's strategy to one's own in the same market and compare the features and performance of actual products. Although, as Gattorna and Walters <ref name="Gattorna J.L. and Walters D.W. (1996)"> Gattorna J.L. and Walters D.W. (1996), ''Managing the supply chain a strategic perspective'', MacMillan Press, Basingstoke </ref> argue, unless the strategic direction of the addressed benchmark company is understood in depth, it is improbable that any comparison will have successful outcomes, especially when management strategies of projects are concerned.		More specific, strategic benchmarking is about trying to compare a competitor's strategy to one's own inside the same market, and compare the features and performance of actual products. Although, as Gattorna and Walters <ref name="Gattorna J.L. and Walters D.W. (1996)"> Gattorna J.L. and Walters D.W. (1996), ''Managing the supply chain a strategic perspective'', MacMillan Press, Basingstoke </ref> argue, unless the strategic direction of the addressed benchmark company is understood in depth, it is improbable that any comparison will have successful outcomes, especially when management strategies of projects are concerned.

	The '''fifth generation''' or '''“Global Benchmarking”''' has to do with a global development and application of benchmarking, and thus is dealing with the globalization of industries. <ref name="Ramabadron R., James W. Dean Jr and James R.Evans (1997)"> Ramabadron R., James W. Dean Jr and James R.Evans (1997), ''Benchmarking and Project Management: a review and organizational model'', Benchmarking: An international Journal, Vol. 4, Issue 1, pp. 47-58 </ref> This generation of benchmarking is helping organizations to identify who are the best in class and then, try to link with them. As it was suggested by some researchers <ref name="Kyro P.(2003)"> Kyro P. (2003), ''Revising the concepts and forms of benchmarking'', Benchmarking: An international Journal, Vol. 10, Issue 3, pp. 210-225 </ref>, a few extensions of the model are starting to arise, and predictions that suggest a sixth and a seventh generation called '''~~“benchlearning”~~''' and '''~~“network benchmarking”~~''' respectively are close on becoming a reality.		The '''fifth generation''' or '''“Global Benchmarking”''' has to do with a global development and application of benchmarking, and thus is dealing with the globalization of industries. <ref name="Ramabadron R., James W. Dean Jr and James R.Evans (1997)"> Ramabadron R., James W. Dean Jr and James R.Evans (1997), ''Benchmarking and Project Management: a review and organizational model'', Benchmarking: An international Journal, Vol. 4, Issue 1, pp. 47-58 </ref> This generation of benchmarking is helping organizations to identify who are the best in class and then, try to link with them. As it was suggested by some researchers <ref name="Kyro P.(2003)"> Kyro P. (2003), ''Revising the concepts and forms of benchmarking'', Benchmarking: An international Journal, Vol. 10, Issue 3, pp. 210-225 </ref>, a few extensions of the model are starting to arise, and predictions that suggest a sixth and a seventh generation called '''“Benchlearning”''' and '''“Network Benchmarking”''' respectively are close on becoming a reality.

	=='''Benchmarking in Project Management'''==		=='''Benchmarking in Project Management'''==

	Improvement can be characterized as the primary driver behind any benchmarking initiative, including that of project management. As it can be seen in Figure 3, Maylor <ref name="Maylor H. (2005)"> Maylor H. (2005), '' Project management'', 3rd Edition, Financial Times, London, UK </ref> presented the four distinct phases regarding the process of project management. In particular, the main idea behind “Develop the process” phase is that constant learning and improvement can be achieved by using information to improve the management process of any forthcoming projects, by evaluating the project progress and by learning from any previous experience. The improvement process can be split into two parts. The first one is '''"learn by doing"''' and the second one is '''"learn before doing"'''. As far as the project progress is concerned, tools, such audit reviews, lesson learnt during the project and scorecards[http://www.learningsolutionsmag.com/articles/9/case-study-team-development-of-simulation-based-application-training] -as it is presented in Figure 4, are vastly used. However, benchmarking is used to link “learn by doing” and “learn before doing” with the aim of learning and improving managerial processes of any future ~~projects~~.		Improvement can be characterized as the primary driver behind any benchmarking initiative, including that of project management. As it can be seen in Figure 3, Maylor <ref name="Maylor H. (2005)"> Maylor H. (2005), '' Project management'', 3rd Edition, Financial Times, London, UK </ref> presented the four distinct phases regarding the process of project management. In particular, the main idea behind “Develop the process” phase is that constant learning and improvement can be achieved by using information to improve the management process of any forthcoming projects, by evaluating the project progress and by learning from any previous experience. The improvement process can be split into two parts. The first one is '''"learn by doing"''' and the second one is '''"learn before doing"'''. As far as the project progress is concerned, tools, such audit reviews, lesson learnt during the project and scorecards[http://www.learningsolutionsmag.com/articles/9/case-study-team-development-of-simulation-based-application-training] -as it is presented in Figure 4, are vastly used. However, benchmarking is used to link “learn by doing” and “learn before doing” with the aim of learning and improving managerial processes of any future project.

	[[File: Project_life_cycle_phases2.PNG\|500px]] <br clear=all> '''Figure 3''': Maylor's project life-cycle phases		[[File: Project_life_cycle_phases2.PNG\|500px]] <br clear=all> '''Figure 3''': Maylor's project life-cycle phases

← Older revision		Revision as of 21:55, 27 September 2015
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	Nowadays, [https://en.wikipedia.org/wiki/Project_management ''project management''] tools and methodologies have been highly useful for organizations that seek to implement changes in order to increase their performance. Adding to that, organizations are constantly striving to find new opportunities to increase their effectiveness as much as possible. One of these opportunities is to examine the outcomes and the lessons learnt from various similar projects that have been completed in the market from similar ~~organisations~~ and thus, use benchmarking.		Nowadays, [https://en.wikipedia.org/wiki/Project_management ''project management''] tools and methodologies have been highly useful for organizations that seek to implement changes in order to increase their performance. Adding to that, organizations are constantly striving to find new opportunities to increase their effectiveness as much as possible. One of these opportunities is to examine the outcomes and the lessons learnt from various similar projects that have been completed in the market from similar organizations and thus, use benchmarking.

	As a business term, [https://en.wikipedia.org/wiki/Benchmarking ''benchmarking''] is the series of actions in order to compare a business' distinct processes, practices or procedures, to other businesses with similar activities and have a leading role in the world market. Benchmarking is mainly used so that a company gains valuable information in pursuance of improving its performance and, as a natural outcome, to increase its competitiveness. Usually, there are different [https://en.wikipedia.org/wiki/Performance_indicator ''indicators''] that companies use to assess their performance during the process of benchmarking. These indicators, mainly focus on the aspects of time, cost and quality.		As a business term, [https://en.wikipedia.org/wiki/Benchmarking ''benchmarking''] is the series of actions in order to compare a business' distinct processes, practices or procedures, to other businesses with similar activities and have a leading role in the world market. Benchmarking is mainly used so that a company gains valuable information in pursuance of improving its performance and, as a natural outcome, to increase its competitiveness. Usually, there are different [https://en.wikipedia.org/wiki/Performance_indicator ''indicators''] that companies use to assess their performance during the process of benchmarking. These indicators, mainly focus on the aspects of time, cost and quality.

	It has been proved that benchmarking against companies that have a leading role in the industry has effectively helped average organizations to improve their performance. <ref name="Luu V.T, Kim S.Y and Huynh T.A (2008)">Luu V.T, Kim S.Y and Huynh T.A. (2008), ''Improving project management performance of large contractors using benchmarking approach'' International Journal of Project Management, vol.26, pp. 758-769</ref> Based on that, this article will present how improvements in the performance of companies can be achieved by benchmarking projects. This article will firstly explore the general purpose of benchmarking. Then, it will be examined how the distinct types of benchmarking can be applied to the management of projects. ~~Furthemore~~, there will be a discussion on what to benchmark and what aptitudes are needed to do so. Finally, an analysis about the limitations of benchmarking in project management will be held.		It has been proved that benchmarking against companies that have a leading role in the industry has effectively helped average organizations to improve their performance. <ref name="Luu V.T, Kim S.Y and Huynh T.A (2008)">Luu V.T, Kim S.Y and Huynh T.A. (2008), ''Improving project management performance of large contractors using benchmarking approach'' International Journal of Project Management, vol.26, pp. 758-769</ref> Based on that, this article will present how improvements in the performance of companies can be achieved by benchmarking projects. This article will firstly explore the general purpose of benchmarking. Then, it will be examined how the distinct types of benchmarking can be applied to the management of projects. Furthermore, there will be a discussion on what to benchmark and what aptitudes are needed to do so. Finally, an analysis about the limitations of benchmarking in project management will be held.

	=='''Benchmarking in general'''==		=='''Benchmarking in general'''==
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	==='''Definition'''===		==='''Definition'''===

	Benchmarking is a constant process of analysis and research among the best performers in order to extrude useful information for improving the ~~organisational~~ or project performance of a company, and not just copy or imitate what others do to thrive. As Bent and Humphrey suggest about benchmarking, ‘‘''Benchmarking is the technical core of the Total Quality Management (TQM) process. It identifies the quality of current personal skill levels and company procedures/methods, and then compares this quality with the latest state-of-the-art techniques''’’. <ref name="Bent J, Humphreys K (1996)"> Bent J., Humphreys K. (1996), ''Eﬀective project management through applied cost and schedule control'', Marcel Dekker, New York </ref>		Benchmarking is a constant process of analysis and research among the best performers in order to extrude useful information for improving the organizational or project performance of a company, and not just copy or imitate what others do to thrive. As Bent and Humphrey suggest about benchmarking, ‘‘''Benchmarking is the technical core of the Total Quality Management (TQM) process. It identifies the quality of current personal skill levels and company procedures/methods, and then compares this quality with the latest state-of-the-art techniques''’’. <ref name="Bent J, Humphreys K (1996)"> Bent J., Humphreys K. (1996), ''Eﬀective project management through applied cost and schedule control'', Marcel Dekker, New York </ref>

	Another definition of benchmarking was suggested from the International Benchmarking Clearinghouse (IBC) Design Steering Committee, which concluded in 1992 that benchmarking is: “''A systematic and continuous measurement process; a process of continuously measuring and comparing an ~~organisation’s~~ business processes against business process leaders anywhere in the world to gain information which will help the ~~organisation~~ take action to improve its performance'' ”. <ref name="American Productivity & Quality(APQC) (1992)"> American Productivity & Quality(APQC). (1992), ''Planning, Organizing, and Managing Benchmarking Activities: A User’s Guide'', APQC, Houston, TX </ref>		Another definition of benchmarking was suggested from the International Benchmarking Clearinghouse (IBC) Design Steering Committee, which concluded in 1992 that benchmarking is: “''A systematic and continuous measurement process; a process of continuously measuring and comparing an organization’s business processes against business process leaders anywhere in the world to gain information which will help the organization take action to improve its performance'' ”. <ref name="American Productivity & Quality(APQC) (1992)"> American Productivity & Quality(APQC). (1992), ''Planning, Organizing, and Managing Benchmarking Activities: A User’s Guide'', APQC, Houston, TX </ref>

	==='''General purpose of Benchmarking'''===		==='''General purpose of Benchmarking'''===
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	It is clear from these definitions that benchmarking is not only a process in which performance, compared to others, can be measured, but also a tool to describe how notable performance can be accomplished. This kind of performance can be described by measures of performance indicators, called '''benchmarks'''. The activities that are used in order to achieve this performance are called enablers <ref name="Camp, R. (1989)"> Camp, R. (1989), ''Benchmarking: The search for industry best practices that lead to superior performance'', ASQC Quality Press, Milwaukee </ref> and their main purpose is to analyze the logic for reaching this kind of notable performance. Usually, benchmarking studies are conducted by taking into account these two components and thus, it can be stated that benchmarks can be attained by acquiring the right enablers.		It is clear from these definitions that benchmarking is not only a process in which performance, compared to others, can be measured, but also a tool to describe how notable performance can be accomplished. This kind of performance can be described by measures of performance indicators, called '''benchmarks'''. The activities that are used in order to achieve this performance are called enablers <ref name="Camp, R. (1989)"> Camp, R. (1989), ''Benchmarking: The search for industry best practices that lead to superior performance'', ASQC Quality Press, Milwaukee </ref> and their main purpose is to analyze the logic for reaching this kind of notable performance. Usually, benchmarking studies are conducted by taking into account these two components and thus, it can be stated that benchmarks can be attained by acquiring the right enablers.

	As part of the benchmarking process, many models and approaches have been used but they all take into consideration an iterative benchmarking process proposed by W.E Deming ~~know~~ as the “'''Deming cycle'''”. The Deming cycle includes a minimum of four phases: [https://en.wikipedia.org/wiki/PDCA ''Plan–Do-Check-Act'']. This is presented in Figure 1.		As part of the benchmarking process, many models and approaches have been used but they all take into consideration an iterative benchmarking process proposed by W.E Deming known as the “'''Deming cycle'''”. The Deming cycle includes a minimum of four phases: [https://en.wikipedia.org/wiki/PDCA ''Plan–Do-Check-Act'']. This is presented in Figure 1.

	=='''Types and Generations of Benchmarking'''==		=='''Types and Generations of Benchmarking'''==
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	It is logical to assume then that if the benchmarking process that focuses on these three criteria is translated carelessly, regarding time, budgeting and quality, it will probably be flawed.		It is logical to assume then that if the benchmarking process that focuses on these three criteria is translated carelessly, regarding time, budgeting and quality, it will probably be flawed.

	Apart from that, Atkinson <ref name="Atkinson R. (1999)"></ref> also suggests the adoption of the '''‘‘Square Root’’''' model, in order to create a more holistic view of project management ('''Figure 6'''). He combines the three criteria of the iron triangle into a single touchstone and adds three supplementary criteria, which are '''information systems''', '''benefits to the ~~organisation~~''' and '''benefits to the stakeholder community'''. The attributes comprising each of the four components include both tangible and in-tangible elements, which would increase the difficulty of initiating a benchmarking process. For instance, information systems usually consist of maintainability, reliability, validity and information-quality usage. Generally, the benefits to the organization are related to improved eﬃciency, improved eﬀectiveness, increased profits, achievement of strategic goals, ~~organisational~~ learning and reduced waste. For the stakeholders point of view, the benefits are akin to satisfying customers and users, minimizing social and environmental impacts, achieving personal development and professional learning, and others.		Apart from that, Atkinson <ref name="Atkinson R. (1999)"></ref> also suggests the adoption of the '''‘‘Square Root’’''' model, in order to create a more holistic view of project management ('''Figure 6'''). He combines the three criteria of the iron triangle into a single touchstone and adds three supplementary criteria, which are '''information systems''', '''benefits to the organization''' and '''benefits to the stakeholder community'''. The attributes comprising each of the four components include both tangible and in-tangible elements, which would increase the difficulty of initiating a benchmarking process. For instance, information systems usually consist of maintainability, reliability, validity and information-quality usage. Generally, the benefits to the organization are related to improved eﬃciency, improved eﬀectiveness, increased profits, achievement of strategic goals, organizational learning and reduced waste. For the stakeholders point of view, the benefits are akin to satisfying customers and users, minimizing social and environmental impacts, achieving personal development and professional learning, and others.