Dr Lou Guthrie Director Benchmarking Institute Michelle Taylor Senior Research Analyst Benchmarking Institute Session Outline Nacubo 2016 The Benchmarking Process Planning Analysis Tools for Decision Making ID: 714121
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Slide1
Benchmarking for Decision-making
Dr. Lou Guthrie, Director, Benchmarking Institute Michelle Taylor, Senior Research Analyst, Benchmarking InstituteSlide2
Session Outline: Nacubo
2016The Benchmarking ProcessPlanningAnalysis -- Tools for Decision MakingIntegration and ActionExamples of Using Benchmark Results for Decision-making Benchmarking Projects for Community CollegesSlide3
Exciting & Difficult Time
for Community Collegeshttps://www.youtube.com/v/cse5cCGuHmE?version=3&start=1269&end=1394&autoplay=1&hl=en_US&rel=0Slide4
Exciting & Difficult Time for Community Colleges
Stagnant/declining fundingDeclining enrollmentHigher tuition and other costs for studentsPressure to increase student successDiverse students with varying educational needsDemand for more transparency & accountabilitySlide5
Challenge is to produce an additional
5 million graduates by 2020 with less fundingSlide6
The Benchmarking ProcessSlide7
What is benchmarking?Benchmarking is the process of comparing one's business processes and
performance metrics to industry bests or best practices from other industries.Simply put, benchmarking is comparing your college to other collegesThree formats:One-on-one Group of peersNational data sets Slide8
Peer BenchmarkingSlide9
Benchmarking is most productive when it is a formal process.Slide10
Types of Benchmarking
InternalGenericCompetitiveSlide11
Value of Benchmarking
Quality improvementAssessment of current conditionsTells college’s storySlide12
Code of Conduct for Benchmarking
www.apqc.orgLegalExchangeConfidentialityUse of informationContactsPreparationCompletionSlide13
Benchmarking StepsSlide14
Planning:
Identify what is to be benchmarkedWhat is the purpose of the benchmark project?Comparing your costs or processes to others to see where you standLooking for ways to reduce costs, increase satisfaction, etc.
Trying to determine where to concentrate management/control efforts
Forecasting, goal setting, strategic planning
Meet with subject matter experts
What
are the critical success factors of my organization?
What are the key elements that tell me how well my
department/unit
is doing?
What are the most important things I do for my customers
?Slide15
Planning:
Identify What to BenchmarkKey Performance IndicatorsStrategic PlanMission & Vision StatementsValues StatementLook at your college sources.Slide16
Planning: Identify what is to be benchmarked
Do Background Research Looking for:Should do before you meet with subject matter experts InternetProfessional AssociationsInterviews w/ expertsPreviously done benchmarking projectsOn-going projects
Articles on the subject
Potential comparative institutions
Do we need to design and implement our own benchmarking project to find the answers we need? Slide17
Benchmarking StepsSlide18
Planning:
Identify comparative institutionsWho is comparable?Tips:Geographic locationSimilar function
Same processes
Similar organizational structure
Similar size or population
Look to professional associations for comparative institutions
Ask subject matter experts
Linked In and other social media
On-line research
Invite twice as many institutions as you would like to have participateSlide19
Planning: Identify comparative institutions
No such thing as apple to apple comparisons Don’t look for perfect matches in your peersSlide20
Can you spot the differences?
Or the similarities?Slide21
Not having an identical twin is no excuse for not benchmarking.Slide22
Peer Selection Criteria
Do you have a list of peer colleges you use?Do you want to just look at colleges in your state?Do you want to look at colleges that compete with you?Do you want to look at colleges that best “match” you?Slide23
How to Select Your Peer Comparison Group
Campus EnvironmentInstitution TypeInstitutional ControlAcademic CalendarCredit EnrollmentMinority StudentsPercent State Revenue
Operating Budget
Faculty Unionized
Service Area Population
Unemployment Rate
Household Income
Service Area Percent MinoritySlide24
Recommendations:
Choose peers based on your situation, needs and goals Slide25
Benchmarking StepsSlide26
Analysis:
Collecting and Benchmarking the DataFirst Step: Determine data collection methodUtilize Existing Databases/ProjectsDYI Benchmarking ProjectsUsing a pre-existing benchmark projectWhat is sample size
Are the colleges similar to yours
Are peer comparisons available
Are definitions clear
Is data verifiedSlide27
Benchmarking Survey:
A Variety of Metrics Are NeededCostsQualityProductivityEfficiencyCustomer Satisfaction
Turn-around Time
Down Time
Rework Rates
Background Metrics
Definitions
You can’t benchmark without good definitions. Slide28
Benchmarking StepsSlide29
Benchmark Data Does Not Require Accounting Accuracy
Estimates are acceptableNo two organizations collect costs the same wayLooking for significant differencesSlide30
Gap Analysis
52%Cohorts
Fall-Fall Persistence
Gap
XYZ COLLGE
Aspirational BenchmarkSlide31Slide32
Analysis involves examining the interplay between variables
For example:between cost and satisfactionbetween frequencies and costsbetween background data and costsbetween costs and turn-around timebetween cost and efficiencySlide33
High Sat. & Low CostSlide34
Benchmark Data:
What we’ve learned thus far:Is Directional Is Not of Accounting AccuracyNo Two Organizations, Sites, Processes are the SameData are a Tool for ComparisonGetting the Data Takes Considerable Time, Effort & ResourcesGetting the Data is Only the Halfway Mark Slide35
Measurement Error from the RespondentSlide36
QuestionsSlide37
Examples of Using Benchmark Results for Decision-making Slide38
Benchmarking StepsSlide39
Benchmarking Can Be Used
AccreditationStrategic PlanningMonitor KPI ProgressReporting to ConstituentsPerformance FundingTo Set Realistic GoalsTo Inform DecisionsTo Improve ProcessesTo Find Best PracticesTo Show Strengths & Opportunities for Improvement Slide40
Graduation and Transfer rate: 42%
Peer group: 15 out of 30Select Key Performance IndicatorFind the gapIncrease student success as measured by the graduation and transfer rate by 5%
1
2
Design improvement strategy
4
75
th
percentile is at 52%
Set the goal
3
Find best practices
Implement improvement
strategySlide41Slide42Slide43Slide44Slide45Slide46Slide47
Recognizing “Best Practices”The Practice is Clearly Superior
The Quantified Opportunity is LargeExpert JudgementThe Same Practice RecursPractice Will Work In Varying SituationsSlide48Slide49Slide50
What are some decisions your college is in the process of debating?Discuss how benchmarking can contribute to making a decisionSlide51
Benchmarking Projects for Community CollegesSlide52
Tools for Community CollegesCCSSE
http://www.ccsse.org/Ruffalo Noel Levitz https://www.ruffalonl.com/IPEDS http://nces.ed.gov/ipeds/IDEA’s SRI http://ideaedu.org/services/student-ratings-of-instruction/VFA http://vfa.aacc.nche.edu/Pages/default.aspxGallup/Purdue http://www.purdue.edu/newsroom/gallup/NACUBO Benchmarking toolhttp://www.nacubo.org/Research.html
Tuition Discounting Study
Commonfund
Study of Endowments
Student Financial Services Survey
AAUP Faculty Compensation Survey
https
://research.aaup.org
/Slide53
Tools for Community CollegesLumina Foundation Affordability Benchmark for Higher
Educationhttps://www.luminafoundation.org/news-and-events/affordability-benchmarkComplete College Americahttp://completecollege.org/Achieving the Dreamhttp://achievingthedream.org/resourcesAPQC PCF for Educationhttps://www.apqc.org/benchmarking-portalInstitute for College Access & Success – College Insight Projecthttp://ticas.org/college-insightSlide54
Tools for Community CollegesCulturally Engaging Campus
Environmentshttp://cece.indiana.edu/Data Sharing ConsortiumsAPPA (Physical Plants)http://appa.org/index.cfmHelp Deskhttp://www.metricnet.com/HR Benchmarkinghttps://www.shrm.org/research/benchmarks/pages/default.aspxSlide55
Tools for Community CollegesBenchmarking Institutehttps://benchmarkinginstitute.org
/National Community College Benchmark Projecthttps://nccbp.org/Cost and Productivity Projecthttps://costandproductivity.org/Non-credit Education and Workforce Training Benchmark Projecthttp://workforceproject.org/Maximizing Resources for Student Successhttp://maximizingresources.org/Slide56
National Community College Benchmark Project
https://nccbp.org/Slide57
Cost and Productivity Project
https://costandproductivity.org/Slide58
Non-credit Education and Workforce Training Benchmark Projecthttp://workforceproject.org/Slide59
Maximizing Resources for Student Successhttp://maximizingresources.org/Slide60
CCSSE
http://www.ccsse.org/Slide61
Ruffalo Noel Levitz https://www.ruffalonl.com/Slide62
IPEDS
http://nces.ed.gov/ipeds/Slide63
IDEA’s SRI
http://ideaedu.org/services/student-ratings-of-instruction/Slide64
VFA http://vfa.aacc.nche.edu/Pages/default.aspxSlide65
Gallup/Purdue http://www.purdue.edu/newsroom/gallup
/Slide66
NACUBO
http://www.nacubo.org/Research.htmlSlide67
AAUP Faculty Compensation Surveyhttps://research.aaup.org/Slide68
APQC – American Productivity and Quality Center
https://www.apqc.org/benchmarking-portalSlide69
Conclusions
Benchmark what is important to your organizationMatch data to your goals, strategies and mgmt. demandsBenchmarking requires self assessment.Focus on areas in your operation that need improvementEasier to use existing tools rather than creating your own benchmark studiesSlide70
Final Conclusion:
Benchmarking is Only As Useful as You Make ItUse the resultsSet goalsImplementSlide71
QuestionsLou Guthrie
louguthrie@jccc.edu913-6469-8500Michelle Taylormichelletaylor@jccc.edu913-469-3831