The Art of BenchMarking

8/8/2019 The Art of BenchMarking

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THE ART OF

BENCHMARKINGBest practices and bottom line success

Ankur Verma - 40707006

Bhavya Pabby - 40707009


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INTRODUCTION TO BENCHMARKING

A means of comparing performance based on critical

success factors. In medical group practice,

benchmarking activities range from comparing financial

and utilization data to clinical and quality indicators.

A strategy used to quantify existing performance factors

and compare them against competitors practices.

(Raymond Manganelli and Mark Klein,The Reengineering

Handbook, 1994)


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ALSO

A well-defined technique or methodology that,

through experience and research, fosters

performance improvement.

The continuous systematic process for

evaluating the products, services, or work

processes of organizations that are recognized

as representing best practices for purposes of

organizational improvement.


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IMPLEMENTING BENCHMARKING

Total Quality Management (TQM) Reduce variationwithin processes.

Continuous Quality Improvement (CQI) Reduce

variation across processes/systems.

Plan, Do, Check, Act (PDCA) Redefine processesto significantly improve performance whilereducing variation.

Six Sigma: Define, Measure, Analyze, Improve,Control, Replicate Employ a strict methodologyand rigorous statistical analysis to achievebreakthrough performance.


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WHEN TO BENCHMARK?

3 reasons to benchmark performance-

Verification

Negotiation

Performance Improvement


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VERIFICATION

Are our contracts performing as anticipated?

Are our employees performing as expected?

Are we in line with budget?

Are our patients satisfied with our service?


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NEGOTIATION

At what rate should we compensatephysicians?

What productivity expectations should weassociate with compensation?

What third-party reimbursement level is

appropriate?

What value does our partner (e.g., hospital,health center, school) derive from our service?


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PERFORMANCE IMPROVEMENT

How can we improve physician productivity?

How can we improve collections?

How can we reduce expenses?

How can we improve facility utilization?


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AWORD OF CAUTION!! Be cautious in selection of benchmark

How was the benchmark data collected?

What errors might exist in the benchmarks?

How applicable is the benchmark to your

circumstances?

Is the benchmark meaningful?


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EVALUATING DEPARTMENT

PERFORMANCE

The potential objectives are-

Solving operational and management problems.

Ensuring appropriate management controls.

Improving organizational performance.

Setting standards for performance monitoring.


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COMPONENTS OF

EVALUATION PROCESS

Organizational structure.

Operating procedures.

Management considerations.

Financial management.


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ORGANIZATIONAL STRUCTURE

Organization charts Formal versus informalreporting relationships

Job descriptions Span of control

Interviews Efficient grouping of

duties

Surveys Matching duties withjob skills

Review techniques Potential Issues


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Review techniques Potential issues

Work flow analysis Work load backlogs

Internal controls

Time and effortmeasurement

Duplication of effort

Surveys Adequate written

procedures

Work load

throughput

measurement

Adequacy of office

automation

Policy and procedure

analysis

Physical environment

limitations

OPERATING PROCEDURES


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FINANCIAL MANAGEMENTReview techniques Potential issues

Overall organization

financial

environment

of operation

Unstable financial

situation

Evaluation of costs Adequacy of management

reports

Comparative

Analysis

Trend analysis

Trends in operational

performance

Review of

management reports

Reasonableness of cost of

operations


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HOW DO YOU BENCHMARK?

Essential characteristics of a benchmark-

Integrity Consistency

Validity

Measures are meaningful

Sample size is adequate Adequate time period

Similar organizational characteristics

Transferability


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ESSENTIAL OBJECTIVES OF

A BENCHMARK

Discover the inputs (causes) of a poor qualityoutcome

Remove those inputs from the process

Institute controls so the inputs and pooroutcomes do not return

Share knowledge regarding specificimprovements across the organization

Continue the improvement cycle


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KEY STEPS TO BENCHMARKING

DEFINE a serious performance problem or concern

MEASURE the level of performance (outcomes)

COMPARE current outcomes to selected benchmarks

ANALYZE root causes (inputs) of poor performance

IMPROVE by removing root causes through

developing and implementing redesigned

processes/systems

CONTROL by designing and implementing systems toprevent root causes/poor outcomes from returning

CREATE a best practice that fosters ongoing

performance improvement


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BENCHMARKING EXAMPLES

Sources of benchmarks-

Internal

Comparing against internal benchmarks.

Competitive Comparing against competitors practices and/or

performance

Functional

Comparing a specific process with a similar one

within a broad range of your industry or business line

Generic

Comparing a specific process from unrelated

industries or business lines


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ISSUES WITH BENCHMARKING

How do we differ a benchmark from a trade secret?

The case of Shanta Biotech Ltd. and Smithkline Beeclan

Co.

Hepatitis B vaccine-a surface antigen-THE PRODUCT

Genetic Engg- THE PROCESS


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CONTINUED

Parameters of the process are:

Type of yeast

Environmental conditions

Maturation period

India has laws governing process patency, not

product patency


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KEYS TO SUCCESS-WHAT

WEVE LEARNT

Evaluate departmental issues to identify problems or

concerns

Select benchmarks that can be used to guide physician

or employee performance and ensure the data can bemeaningfully translated into action

Translate benchmarking into methodologies and

techniques that create best practice

Change performance is the essential key, not to grade

performance

Monitor the results, and if desired outcomes are not

achieved, intervene


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Documents

The Art of BenchMarking