Five phase concept
The five-phase concept is a benchmarking method which is used to create a systematic and continuous improvement process in your own company by comparing (e.g. products, processes or structures) with other companies.
The five-phase concept developed by the German Benchmarking Center divides a benchmarking project into the following steps: the goal setting phase (preparation phase), the internal analysis (data collection phase), the comparison phase (data analysis phase), the action phase and the implementation phase.
Using the data obtained from the comparison, weak points in the company's performance can be identified and eliminated, and potential for improvement recognized and exploited. Best practice serves as an orientation . The aim is to create a long-term optimization process for products, services, internal processes, cost structures, etc. and to maintain a constant learning process in the company. Due to the desired continuous improvement, the five-phase concept is viewed as a cycle. Once the five phases have been run through, goals are defined again, data is collected and measures are determined and implemented.
Goal setting phase
Components of the goal setting phase, which is also called the preparation phase, are the determination of the benchmarking object, the composition of the benchmarking team and, above all, the definition of the goals to be achieved by this project.
The goals are defined and quantified in detail, and the framework conditions are established. It should be noted that potential influencing factors on the target values are also determined and taken into account. Since the comparability of the results must be guaranteed for a successful benchmarking process, numerical, i.e. measurable, values should be selected. This phase therefore forms the basis for the success of the entire project, since the direction in which the benchmarking project should go is already determined at this point.
For the selection of the benchmarking object it applies that in principle every component of a company can be examined by benchmarking with the help of the five-phase concept. Examples of benchmarking objects are products or services, processes, cost structures and organizational systems. The benchmarking object must be clearly delimited and its depth of consideration must be determined.
Furthermore, a benchmarking team is put together and a project manager with sufficient benchmarking methodological competence is determined. It should be noted that the members of the team have a very comprehensive and objective understanding of the processes, structures and products of their company, as well as precise knowledge of the benchmarking object.
Internal analysis
In this phase, the benchmarking object is carefully examined and data from your own company is collected.
For a successful analysis, all key figures ( benchmarks and influencing factors) that are relevant for the benchmarking object must first be determined. Usually, a questionnaire is drawn up based on the determined core and measured variables. The focus of the questionnaire is on the key question: "Which methods did the benchmarking partner use to achieve the better results?" This catalog of questions forms the basis of the information exchange with the benchmarking partner.
The aim of this phase is to collect as precise and as much meaningful data as possible, but the economic efficiency of information acquisition and information evaluation must not be disregarded. A balance must therefore be found between the amount of information and the economic effort.
Comparison phase
This phase is used to exchange information between a company and a suitable comparison partner and to identify the performance gaps and their causes. This exchange of information can take place, for example, through a questionnaire, an interview, a company visit or a combination of these elements.
First, the properties of an ideal comparison partner are defined. The decisive criteria here are comparability, mutual trust and the expected learning potential of the comparison partners. A list of possible benchmarking partners is then drawn up according to the criteria mentioned. More detailed information about them is gathered and the most suitable partners are sought out. In the third step, they are contacted and their willingness for benchmarking clarified. If a commitment is made, the next step is to jointly coordinate the further procedure. The exact content that is to be compared is determined. For this purpose, the questionnaire that was worked out in the second phase is adjusted to the interests of both comparison partners and supplemented. The revised questionnaire will be completed by both partners. The collected data is then subjected to a plausibility check in order to correct any incorrect data.
In the next step, the data from the two benchmarking partners are compared directly. The answers to the questionnaire are analyzed and significant differences in performance are identified. The information received is then evaluated by determining the reasons for the differences in performance and performance gaps at both companies. Each of the partners receives a proposal for a better strategy for their own performance deficits, namely best practice .
Measure development
In the following process, the results obtained from the first three phases are to be converted into suggested measures in order to achieve the goals defined at the beginning.
For this purpose, all knowledge gained is passed on to the managers and various affected departments in order to ensure a general understanding of the current status.
First, all measures are collected that can be determined from the comparison results without evaluating them. With the help of the initial benchmarking objective, an evaluation scheme is developed and applied to the measures. The strategic goals of the company and its current performance must be taken into account. In addition, the best practice solutions should not just be adopted, but also adapted and further developed as best as possible.
This results in a catalog of measures with effective, realistically implementable measures. The catalog also contains the evaluations of the individual measures as well as their priorities, costs and economic considerations. This catalog of measures is presented to the decision maker and, if possible, his approval is obtained.
Implementation phase
The implementation phase is the last phase of the benchmarking process and is decisive for its success, as this is where the concrete measures are put into practice.
The phase begins with the detailed planning of the measures. A precise action plan is drawn up for this, which includes the entire period, milestones and responsibilities. The responsibility is transferred from the benchmarking project manager to the technical managers. In order to reduce possible resistance from employees, the employees affected should be informed about the upcoming changes as early and as fully as possible.
The actual implementation is very time-consuming, which is why management should create the necessary time frames. The implementation plans are then implemented in the form of several improvement projects. The structures and processes that have been used up to now have to be adapted. This requires active support and a targeted, structured approach.
Finally, the implementation process is monitored in an ongoing process by continuously checking and analyzing the achievement of the goals and the project progress.
The benchmarking process was successful when all measures were implemented, the defined goals were achieved and the benchmarking object was improved beyond the previous standard. It is also regularly checked whether the company's own requirements are still being met in order to determine the point in time for a new benchmarking cycle.
literature
- G. Siebert, S. Kempf: Benchmarking - Guide for Practice. 3. Edition. Carl Hanser Verlag, Munich 2012, ISBN 978-3-446-41569-0 .
- C. Lengner: Benchmarking information system-supported business processes. 1st edition. Deutscher Universitäts-Verlag, Wiesbaden 1999, ISBN 3-663-01212-3 .
- Katrin Schäfer: Possibilities and limits of benchmarking. Seminar paper, FOM Essen. GRIN Verlag, Munich 2006, catalog number: V110353
- T. Reisbeck, LB Schöne: Real estate benchmarking. 3. Edition. Springer-Vieweg, Berlin 2017, ISBN 978-3-662-55366-4 .
- I. Bamberger, T. Wrona: Strategic corporate management. 2nd Edition. Vahlen, Munich 2012, ISBN 978-3-8006-4272-4 .
Individual evidence
- ↑ Five-phase concept. In: German Benchmarking Center - Glossary. (benchmarkingforum.de) accessed on December 30, 2017.
- ↑ T. Reisbeck, LB Schöne: Real estate benchmarking. 2017, p. 46.
- ↑ G. Siebert, S. Kempf: Benchmarking - Guide for Practice. 2012, p. 94.
- ↑ T. Reisbeck, LB Schöne: Real estate benchmarking. 2017, p. 151.