Benchmarking
Benchmarking is facilitating communication outside of the organization to identify and integrate the best practices in task design and performance.
Benchmarking is a useful tool for leaders because it is meant to ensure the best possible quality in whatever it is that they do. It gives leverage through new ideas, accelerates change and is a catalyst for learning. Benchmarking can help sensitize your employees and organization to the need for change. It can be an integral part of formulating goals for improvement. The benchmarks you set represent the best there is to offer in your field and what you hope to be.1
Xerox has set the high bar for benchmarking practice. Their 12 step process is meant to occur in 5 phases; planning, analysis, integration, action, and maturity.3
Example: Say you are in a student organization and are looking to learn about fundraising opportunities. You have questions about how other groups fundraise and how successful they are in their efforts. You decide to go through the benchmarking process to answer your questions.
12 Step Process
Planning
1. Identify what to benchmark.
You decide that any type of fundraising will be included. This can include auctions, all kinds of sales, asking for donations, performances, applying for grants, etc. You also decide that you want to ask how much time was spent on each fundraising activity, how many people participated, and how much money was raised.
2. Find comparative companies.
Other student organizations are chosen as the ‘comparative companies.’ This is because they are all made similar opportunities for finding donors and applying for funds. You contact the local office for student organizations and ask for a list of all groups.
3. Collect data.
After developing a spreadsheet to put the information you gather into, you assign people in your group to make phone calls asking to interview heads of the other student organizations. Each person is asked during the interview what kind of fundraising had been used in the last 3 years, how much time (weeks, days, etc) was taken by the project, how many people participated, and how much money was raised as a result.
As the head of your own organization, you answer these same questions for yourself.
Analysis
4. Determine the current gap in performance.
Come up with averages across groups. What was the biggest money maker? What required the most time and the largest number of people? Were the results worth it? How much money have you made in comparison to the other groups?
5. Project future performance levels.
Determine which of the projects you feel would be reasonable for your group to complete considering the number of members. Which of these would make the most money? Use these new fundraising options this year and estimate, based on the performance of similarly sized groups, how much money you can expect to raise if everyone does their part.
Integration
6. Communicate your findings and gain acceptance.
Gather your group for a meeting and show them the bottom-line figures you came up with. Explain the types of things you would be able to do with the money should your group decide to use the benchmarking information. Ask them to choose from the options you thought were best, which fundraiser they would like to do.
7. Establish functional goals.
Set a challenging, yet realistic goal for each person to accomplish. How much time should they spend each week on the fundraiser? How much money should each of them make? If you are having a sale, how much product should each person try to sell?
Action
8. Develop an action plan.
When is the best time for you to do your fundraiser? Set the action plan around this timeframe. Are you going to try and reach the broadest group of potential donors that you possibly can or would it be more prudent for you to target specific people as donors? Maybe your product or method of fundraising would be particularly successful with certain people.
9. Implement your specifications and monitor the progress.
When the people in your group are doing the fundraiser, they should keep track of how much they do on a regular basis. Ask them to keep track of who they have solicited for the project, how much money they raise, and how much time they spend. Periodically, you should collect all of the information and consider where your group has been successful and where they are falling short of expectations.
10. Recalibrate your benchmarks.
Remember to highlight what people are doing well and make further suggestions based on those successes. Perhaps you need to raise expectations. However, if group members are bring concerns regarding the expectations, you need to address why the expectations might be too high. Then, either give suggestions for how to be successful with the current expectations, or adjust the expectations accordingly.
Maturity
11. Attain a leadership position in your field / area.
After you have been benchmarking what other groups are doing and creating success for your own group’s fundraising activities, you will have knowledge regarding fundraising that others do not. You should try to leverage this position by becoming known as a leader in the area of fundraising. In this way, others will benefit by seeing your example and following it.
12. Fully integrate your new practices into processes.4
A very successful fundraiser can be implemented into your group processes so it is a permanent fixture in your yearly or biyearly agenda. When the fundraiser becomes a well-known part of your organization, you may be able to gain campus attention and raise sales because donors/buyers will be looking forward to the upcoming event.