Benchmarking Example

Example
For a particular project, Maintenance ran over budget, triggering an investigation to determine the cause. The results showed that the number of defects found increased as the project moved into maintenance.  Cost cutting on testing to meet the delivery dates was the issue.  Productivity and project duration were within benchmark limits but the large number of defects ultimately caused customer satisfaction to suffer.

Each area should be given a weighting according to its importance and if the target for that area was met.

An example of a benchmark score card could be

AreasTargetRating% contribution
Productivity3rd quartile measured against industry data0 – less than median

1 – median (within 5%)

2 – greater than 3rd quartile

40%
Time to market3rd quartile measured against industry data0 – less than median

1 – median (within 5%)

2 – greater than 3rd quartile

20%
Customer Satisfaction4.5/50 – less than 4.5

1 – 4.5-4.6

2 – greater than 4.6

10%
% on time80%0 – less than 80%

1 – 80-85%

2 – greater than 85%

10%
% on budget80%0 – less than 80%

1 – 80-85%

2 – greater than 85%

10%
% change requests30%0 – greater than 30% change

1 – 25-30% change

2 – less than 25% change

10%

The targets, assigning of points for achieving targets and % contribution are determined by the values of the organisation.

For example if the organisation prides itself on customer satisfaction then this would have a higher weighting than % change requests.  Basically they want to deliver exactly what the customer wants possibly requiring more change requests along the way.  Obviously this would be to the detriment of productivity and time to market.

Year on year the benchmark can be compared with the ultimate goal of achieving best practice in all areas.

Capability Maturity Model level 5 would require benchmarking and performance measures to be part of normal business practice.