“Benchmarking an
Organisation”
Presentation by Jon Wigley
IPPA Conference
Harrogate, September 14th 2013
Agenda
 Setting Expectations
“How MO`s measure up against their journey towards
advance development and compare to other MO`s
working towards the same objective”
Benchmarking process - Frameworks
Not-for-Profit v For-Profit
Similarities and differences
Agenda
 What are we benchmarking?
Organisational excellence
In whose eyes?
Who matters?
Members, Peers, Service Partners, Industry, Clients,
Employees, Volunteers…..Others?
Agenda
 Against whom are we benchmarking?
MO`s - Each Other?
Other not-for-profit in the Health Industry?
Other not-for-profit?
For profit?
Small Medium Enterprises (SMEs)?
Agenda
 Benchmarking based on what criteria?
Deliverables (kpi`s)
+ Set
+ Monitored
+ Reviewed
+ Revised
Objective v Subjective
+ Deliverables v Feelings
Agenda
 Why are we benchmarking?
 Why is it important (to you)?
+ Excellence
+ Better
+ Challenge
+ Change
+ Positive Energy
Agenda
 Setting expectations (yours)?
What would you like to get out of this day?
Why?
Introduction – Jon Wigley
 Jon Wigley – Background
A Business Coach
Coaching v Consulting
SMEs focus
Industries – Finance, Legal, Media, Technology,
Entertainment, etc
Private Practice – Physiotherapy
First hand experience!
General Introduction
 Rapidly changing world and more demanding
pressures – drivers and impact…and opportunities!
Social trends: expectations and demands
Technology & Social Networks: Communication
Mobility: Loyalty
Aspiration: Consumerism
Recession: Cost/Value
Dynamics of a NFP
 The prevailing dynamics of a Not-for-Profit
Honorary functions filled by dedicated insider practitioners,
often for many years, even decades!
Passionately care about what they do xxx
Day-to-day patterns of behaviour permeate their voluntary
contribution
+ TRUST(ee)
+ COMMITMENT
+ LOYAL(ty)
Similarity of NFPs to SMEs
 Not-for-Profit entities and the similarity to SMEs
The emotional pull of the small business
The passion that create and drives an SME
The challenge of managing a small business
Working “IN” v Working “ON”
Time – A most precious resource
Core skills and experience
Is business evolution predictable?
 The evolution of a small business
Is there a typical mode of progression?
Anchor for our benchmarking – to know where we are up
to, we need to reflect where we have come from!
How do we typically measure our progress?
Measuring objective progress
 How do we typically measure our progress?
 Objective measures? Increase in:
Turnover
Profit
Number of clients
Increase in pricing
Number of staff
Amount/size of equipment, premises, etc
Measuring subjective
progress
 How do we typically measure our progress?
 Subjective measures? Feelings?! +/Feelings drive behaviour and have significant impact but
often unconscious
Feelings can, and do, shift over time
Behaviour is managed with, and through, a defined
business culture
Stages - Feelings
 The “Stages” Framework
The major significance of feelings
How they significantly and silently impact over time on a
business, a team, and every individual
How they shift over time
The Stages Framework - Presented
Functionality – The Key Skill
 Functionality – The Key Skill Set to benchmark
Being Functional – What does it mean?
“To serve a PURPOSE for which it was designed”
“Fit for purpose”
Efficiency – minimum expenditure of time & effort
“The purposeful use of resources to achieve a desired
outcome”
Functionality – benefits?
 Functionality – What will it achieve?
Clear management reporting
Motivated staff
Lack of duplication
Management focus that maximises skills
Time released
Functionality - Avoids
 Functionality – What will it avoid?
Duplication of effort
Management time lost
Bottlenecks
“Work-arounds” (The Rock in the Stream)
Staff frustration
Miss-match of skills
No direct, clear communication
Functionality – 7 x key
objectives
1. PROFITABILITY
(RESOURCES ALLOCATION)
Subjective: Objective
Qualitative: Quantitative
People: Infrastructure
Functionality – 7 x key
objectives
2. PRODUCTIVITY
(EFFICIENCY)
Processes
Methodology
Formality
Discipline
Precision
Management Tools
Functionality – 7 x key
objectives
3. Building a STRONG FOUNDATION
Upon which to (GROW)
Planning
Scheduling
Managing
Monitoring
Reviewing
Revising
Functionality – 7 x key
objectives
4. POSITIVE ENERGY
(People and Roles)
Define the “right” roles
Define the “right” people
Put the right people in the right roles
(Remove the wrong people!)
Functionality – 7 x key
objectives
5. SELF RESPONSIBILITY
A (No Blame) Culture
Responsibilities:
Understood
Taken
……Fully!
Functionality – 7 x key
objectives
6. OWNERSHIP
(Value)
To own
To possess
To value
The endowment effect – care, commit, contribute
Functionality – 7 x key
objectives
7. EMPOWERED WORKFORCE
(Power)
Giving power
Giving authority
……to THINK
……to ACT
Leads to effective SUCCESSION!
The Functionality Cycle
 Against which we can benchmark ourselves as we go
through the cycle
Positive – Happy with current status
Average – OK but could do with some work
Poor – Definitely needs work
The Functionality Cycle
 INTENT
Our fundamental purpose – Why do we exist?
Focused, conscious, and clear – gives context to everything we
do or think to do
Objectives set, unified and communicated
You
Others
The Business
Are You?
The Functionality Cycle
 RESOURCES
Lead: Manage
People: Infrastructure
Character: Facilities
Talents: Equipment
Skills: Systems
Wisdom: Knowledge
Potential: Actual
Do You use well?
The Functionality Cycle
 STRUCTURE
Clearly define the required outcomes
Create a structure that reflects the full range of necessary tasks
(see Workflow - next)
Delegate responsibility, but be accountable
Distribute power and authority
Empower a sense of ownership
Roles and responsibilities understood and taken
Do you have?
The Functionality Cycle
 WORKFLOW
Create an effective interface and balance between:
+ Strategic Operations (Long-term planning)
+ Business Operations (The day-to-day work)
+ Support Operations (The essential back office)
The Functionality Cycle
 WORKFLOW (cont`d)
The efficient workflow is based upon the clear definition
and understanding of:
Structure, Roles & Responsibilities, Reporting Lines,
Policies & procedures, Communication, KPIs, Monitoring,
Evaluation, Feedback, and Training……..
All supported by quality management tools
Do you have?
The Functionality Cycle
 EFFICIENCY/TIME
Efficiency – “The minimum expenditure of time and
effort”
Processes, Methodology, Formality, Discipline, Precision,
Management Tools
Time – Time released v Management Time Lost
Awareness of value, allocation of usage, and effective
delegation
Are you?
The Functionality Cycle
 CAPACITY
The full and conscious leverage of existing resources –
today?
Planning for future growth and the necessary increase in
resources – tomorrow?
Investment Planning?
Right People: Right Roles
Do You?
The Functionality Cycle
 Support Operations
Most SMEs completely under-value/estimate the
importance of the following functions and as a
consequence do not invest sufficiently in their proper
management:
IT, Finance, Legal, Administration, Secretarial, HR,
Premises, Compliance, etc
Do You?
The Functionality Cycle
• PERFORMANCE
The importance of high performance
Leveraging potential
Setting objectives
Reviewing performance – feedback
Acknowledgement
Value(d)
Do You?
The Functionality Cycle
 QUALITY
Quality is a state of mind
Product (what) AND Service (How)
Always add value to what we do and how we do it
Reflects a chosen and sustained Position
Enhances brand and reputation
Attracts – clients, referrals, employees, etc
How aware are you?
The Functionality Cycle
 CREATIVITY
Why is it important to encourage creativity?
Fresh
Challenge
Positive Energy
Change
Open
Are You?
The Functionality Cycle
 FLEXIBILITY
Why is it important to maintain flexibility?
Speed
Choice and change
Individual needs
Bespoke
Dynamic
Are You?
The Functionality Cycle
 The Business Culture & Soft Skills
Culture = Behaviour (expected)
Articulated and aligned values
Processes – Recruitment, Induction, Delegation,
Performance, Mentoring, etc
Communication, Relationships, Issues
Encouragement, Motivation and Incentives
How aware are you?
Summary
Benchmarking – What, Against Whom, How and Why
A rapidly changing world – drivers and impact
The prevailing dynamics of a not-for-profit
Similarities with SMEs
Core Observations on SMEs
The typical evolution of an SME – Stages
Functionality & its 7 x Key Objectives
The Functionality Cycle
Benchmarking
Stages – Where are you as an MO; Where are You?
7 x key Objectives – Profitability, Productivity, Strong
Foundation, Positive Energy, Self Responsibility,
Ownership, Empowered Workforce
Functionality Cycle – Intent, Resources, Structure,
Workflow, Efficiency, Capacity, Support Ops,
Performance, Quality, Creativity, Flexibility, Culture & Soft
Skills
Did you get what you wanted from the day?