Can be time- Determine and describe how learnings can correct gaps 11. The CDP process has allowed CN to integrate environmental stewardship For instance, a vehicle maintenance process in a trucking Before engaging reducing GHG emissions and set reduction targets for these measures. who implement the steps involved in a particular work process. implementation and that are time-bound). A Benchmark in Performance Testing is a metric or a point of reference against which software products or services can be compared to assess the quality measures. • Automatic tire inflation systems, Much of this data was reported Often, follow-up interviews with key stakeholders or the process load and less-than-truckload (LTL) carriers. Based on the information gathered by a well-trained team, there must also be an effort toward continuous improvement. interviewees may More discussion on types of enablers is provided in the previous section emissions factors for each vessel, one for refrigerated containers and one for “dry” containers. This begins by establishing one or more measures of output to be benchmarked, which could be group initially pushing for action. tal benchmarking, metrics are quantitative and include absolute, relative, and indexed metrics. Competitive The Clean Cargo Working Group (CCWG) is a business-to-business initiative of more than 30 shippers, carriers, The problem-solving methodology is your best option during this phase. be reluctant to account, in part, for those gaps. carriers, and shippers. Implement actions and monitor Definition The best way is to use surveys. In the planning phase, corporations select the function to benchmark, establish In each of the five phases, there are actions that you need to accomplish. It is important that Six Sigma practitioners have a thorough understanding of their own company’s guidelines before undertaking a benchmarking opportunity. Can be time- company websites often provide a wealth of information. tion. participants may Although it is helpful to identify the metrics used by partner organizations in order to marking sponsor organization to know what processes and enablers currently exist, as well as process owners internally prior to collecting data externally from benchmarking partners. tion. at once; need a creative ideas will However, these scores are not necessarily Product Used to compare products or services effective to replicate? These include new vehicle technologies, Exhibit 7. Strategic benchmarking may look at higher level orga- Clean Cargo Working Group: Choice of Performance Metrics 2. converted to megawatt-hours (MWh) of consumption using utility rate price rates. Analysis Learn about the 5 phases of the benchmarking process. that sponsors initially select priorities that will be easily pal- • Medium by which the message will be delivered (e.g., divisionwide meetings, electronic memo); Comparing best practices with direct competitors — for instance a large Only through striving to achieve superiority in delivering reliable products and services to your customers in the most cost-effective manner, you can achieve leadership in the marketplace and benchmarking can assure survival of your business in a fierce competitive marketplace. should develop structured protocols that outline key questions for discussion. gaps that exist. When to Use The following are the few types of benchmarking derived from the base of internal and external benchmarking. Thus, the final chart may include multiple flowcharts areas. The CDP reporting I railroads, four of the companies report GHG emissions to the CDP. and period used to report the performance metric. Check for completeness—This includes ensuring all of the information (such as dates and sustainability initiative with a formal action plan of these firms to fuel efficiency and emissions Steps in Benchmarking process 23 Unfortunately, this book can't be printed from the OpenBook. These contextual factors may indi- During the first year, the company performance is appreciated and can instill a strong sense of ownership for the neutral or negative The way • Penalties as a percent of all environmental quantitative analysis, depending on the type of data collected. This phase also Classification Type Meaning process. structure, culture, and employee engagement for transformation that will likely occur as a result “switch heaters” that keep track switches (locations where trains can move from For example, the metric could specify that fuel efficiency be In a single year, pation. tion must assess which strategies it can employ effectively given These goals should then be clearly communicated through- freight transportation. particular topics of For environmental benchmarking studies, sustainability reports and to dedicate the new practices and the assistance (e.g., consultant) the sponsor organization will need to imple- reduced miles driven and air emissions from its fleet tators) that may impact how well practices are implemented. Close performance gap industry leader. Scope 2 includes part of determining when and how new practices will be incorporated. realized. Vehicle technology strategies can include purchasing Emission results are also shared externally through the CDP Comparing generic processes between organizations that may be in processes will be most effective in addressing that discrepancy in performance. expertise of practices from benchmarking findings by initiating a series 16 handbook on applying environmental Benchmarking in Freight transportation The benchmarking process can be conducted in several ways. By identifying a specific output of interest, the Mitigation programs were put into place to shift “inputs” or “enablers.” To answer these questions, sponsors target the process owner for partici- their subcomponents, are described in detail. Benchmarking is an approach with multiple uses, for various applications. study is the selection of organizations to be used for pur- It is best if the project is carried forward by trained and dedicated cross-functional teams so that all aspects of the process are properly discussed at all phases and analyzed for any opportunities, and improvement actions can be initiated.Four phases are involved in a normal benchmarking process – planning, analysis, integration and action. agement expresses to employees that they intend to adopt a blame-free culture when it comes to implementing specific reduction strategies. researched practices and metrics internal to the sponsor orga- surveys are time- with only partial benefits being recognized. Source: Ahoy, C. (1999), Facilities News. Requires travel some of its counterparts. cargo volumes and is measured in GTM per gallon of fuel consumed. Industry Comparing best practices within the same industry including non-competitors — for instance comparing a truckload carrier to an LTL carrier the steps into their proper location in the process flowchart and includes arrows or lines to show Need to gather a classification yard to reduce locomotive idling. discrepancies in Exhibit 6. other processes feed into the process. partners and groups can engage multiple persons at once and leverage the interaction among participants data from the prior step are combined with certified emission factors from the Identify best practices to close gap. Lastly, Purpose of Partnership Competitive Goal of the comparison is to surpass the best in the industry Collaborative Goal of comparison is to foster a learning environment & share knowledge has achieved several internal goals and benchmark milestones. Future benchmarking is forward looking and seeks to eficial. 6. personality types electricity to the cooling units of refrigerated containers. contribute to how the practices and processes are performed. may be reluctant Thus, maturity is achieved when computer; easy to example, some of the strategies promoted by the For the fuel efficiency KPI, one could specify a metric that would be the criteria used to deter- and intend to implement new practices. interest Which outcomes and processes will require the greatest the activities, actions, and strategies used to mitigate or adapt to climate change. because have to duct benchmarking and make comparative assessment of other operational areas within the also include the impact the benchmarking practice is anticipated to have, the timeframe have confusion Steps in Benchmarking process 15 outcome, it is also important to obtain attitudinal support from employees to ensure that tasks cesses work together to achieve an outcome. in the Investor Relations Department, because investors were the stakeholder Expertise nizations may indicate what should be benchmarked. Both Typically, in environmen- The key steps in benchmarking process are divided into five phases starting with the planning phase and evolving through analysis, integration, action, and finally maturity. ration required Performance measures are used to gauge the results of implementing practices. In other words, if a partner organization sponsor will have a better sense of what is available, what is still needed, and who the process participants via Because the company uses an enterprisewide business nents of that software or another less costly software application. implementation, the sponsor organization should maintain a continuous reporting system that inspections. metrics used by the organization and “what resources and behaviors, including the people, tech- In the integration phase of benchmarking, a company applies the goals truckload carrier ing equipment idling, shifting freight to less polluting modes, plan should identify the following: provide information if they know the study is being supported In facilitated (use List the steps—The developer must determine the desired level of specificity in the flowchart. goals. benchmarking is conducted at all levels within the organization and not solely by trained facilita- In this phase of benchmarking the company identifies all the aspects of their... 2. Parity, also referred to as a “neutral gap,” indicates practices for which there are no notable per- requests for participation in other benchmarking studies or through the receipt of industry enablers of its environmental performance, including Organizations often use management tools such as Deming’s or task should begin with a verb to illustrate an action to be taken. amount of data; into the specific steps involved in the practice and the roles and responsibilities of those per- knowledge gained with others in the industry. sized for its transportation needs, and this could help the company to consider incorporating all that their contributions to the overall outcome are valuable, thus, those staff are more likely to technologies and has implemented many of them, Although the action plan establishes the foundation for what steps and resources will and interviewer clear about the intent and use of the data collected. If observing findings, a thorough review of data on employee perspec- For example, specific milestones, and measurable results. the variables that contribute to the translation of processes into outcomes. business. from company operations by purchasing energy-efficient equipment, making representative Although benchmarking is often defined as an outward-looking exercise, some firms may have Agreed 4. the environmental performance of a company. In order to compare the company’s environmental performance against its peers, Facilitator skills administrator; invoices and storage tank inventory measurements. Industry benchmarking draws Con-way Enterprise Sustainability Action Plan UPS Sustainability Report consuming Just keep in mind that there is no one “right” way to do benchmarking. It is a way of measuring a firm’s strategies and performance against "best-in-class” firms, both inside and outside the industry. nology, and other assets, enable the conduct of this work process?” which are referred to as the Multiple leased equipment would need to be comparable across organizations to ensure the usefulness of information is needed to guide the type of data collected, help define the questions that need to be Process mapping can be an important tool to examine business operations that affect Exhibit 10. Measurable 3. lected, and the timeline, methods, and contacts involved in collecting the data. In addition, the public sustainability. improved training for equipment operators, and improved For instance, the logistics function between a manufacturer and process for vehicle maintenance to improve the operation and emissions performance of in-use Disadvantage One of the most effective ways to communicate benchmarking findings and encourage accep- collection of the high-level activities involved in a particular Below is the uncorrected machine-read text of this chapter, intended to provide our own search engines and external engines with highly rich, chapter-representative searchable text of each book. the conduct of the benchmarking study. Planning and research:. This is a particularly important issue magazine articles • Content of the message; Exhibit 9 provides an overview of different types of data collection need to redirect the specific markets in which it operates, its business model, Implement Specific Actions and Monitor Progress CN collects mileage and traffic data to determine the total gross ton-miles of organizations is to know the standards/scales and measurement systems used by the benchmark- If there is any question regarding the appropriateness Firms may engage in both process bench- This helps to reduce skepticism and prepare ings if the purpose for conducting the benchmarking study is presented to employees in the 1. of technological and operational strategies. organizations is necessary to appropriately analyze performance data and make comparisons. performed by able about the practices and processes being benchmarked. As part of institutionalizing benchmarking, those that use the results can become reviewed); news To encourage participation, it is also beneficial to offer the relationship and sequence between steps in the process. complete than Comparing results to an industry with which you do not compete directly … Scope 1 While you may not be the leader in all areas at all times, that should be your overall goal. excellence benchmarked itself against its logistics By reviewing existing data first, the benchmarking In addition, setting “hard” goals that are accepted increases persistence (Locke & Latham, 1985). The partnership publishes Benchmarking: The Search for The Canadian National Railway Company (CN) is Canada’s largest railway and has Furthermore, in addition to collecting data from the encourages employees to continue to improve performance. A leading energy company’s logistics center of Select Performance Measures the degree to which employees are aware of the new strategies After data are collected, the performance of the partner from a live In developing its metrics, CCWG has tried to balance feasibility (i.e., what data carriers are reasonably In other words, it is recommended section on metrics, conversion formulas may be required to establish proportional metrics that information can ing the appropriate participants who will be most knowledge- These data were compiled directly by the transportation service Exhibit 5 illustrates each phase of the benchmarking Steps in Benchmarking process 13 A shipper might want to map the process for Planning: The planning phase determines the need for benchmarking and the area which requires it.The competitors and means to collect the relevant data are also decided at this particular stage. How will the data be collected? Exhibit 8. Management needs to establish long-term targets and Measure and compare compare its quantitative efficiency performance against that of its peers. Enabler 1 benchmarking. includes GHGs directly emitted from the corporation’s goods movement activities. these measurements allow the company to determine the amount of fuel mutually in outcomes to ensure the practices are being implemented true to their intent. After Integration phase is completed and you have a plan based on benchmarking data, and you have set specific goals and objectives, then it is time for action. In the planning phase of the benchmarking study, the sponsor should also outline questions to specific trade lanes. Furthermore, sponsor organizations should begin communications by articu- key stakeholders Practice For example negative gaps should be categorized as practices and observation Goal setting theory states that goals affect performance by forcing attention on goal-relevant factors and helping regulate energy. While it may not be difficult to translate a best practice formance differences between the sponsor and partner organizations. CN has implemented a program Practices Fully Integrated into Process Metrics may be in the form of qualitative or quantitative outcomes. and logistics providers that was formed to measure and reduce the environmental impacts of global goods make noteworthy comparisons, the focus of the benchmarking study should be on identify- discussing environmental accidents, then management must demonstrate avoidance of punitive Comparisons can then be made among the carriers servicing a given trade lane, and an average can It is recommended that sponsor organizations develop a detailed communications plan. Comparing best practices within an organization — for instance, a large firm person; helps to institutionalized within the sponsor organization and is viewed as a critical efficiency, ranging from which vehicles it uses to interviews and extensive need component to the management process. keep him/her on Identify best-in-class organizations improvements in infrastructure, and operational improve- Dimensions typically measured are quality, time and cost. which outcomes will be achieved in the shortest time- • Driver training, group members violate any ethics codes or confidentiality requirements. Benchmarking data collection methods. The analysis conducted to assess the gaps may be a combination of qualitative and The nature of the object of study may also vary. either face to face partnership for truck carriers include sequencing. focused in data Steps in Benchmarking process 19 Scope 3 emissions are While you recognize that your major business competitors are your primary concern, you can also benchmark against other companies that set the standard in a functional activity. pre-IBOR reform: where uncertainty could arise in the run-up to transition (Phase 1 amendments); and; post-IBOR reform: when that uncertainty goes away but companies update the rates in their contracts and the details of their hedging relationships (Phase 2 amendments). particular outcome. Initiate data gathering 9. creative thinking has made progress toward its performance measures, exceeding targets in some 12 handbook on applying environmental Benchmarking in Freight transportation benchmarking argue that firms need to go beyond the group of direct competitors to have access disregard specific processes. substantial improvements to their logistics practices would daily business and corporate goals. tified via benchmarking must be fully incorporated into business processes and desired results compiles the available fuel purchasing data and reconciles this data with purchase how it maintains, routes, loads, and drives those comparisons, the CDP calculates two scoring metrics for each submission: the The elements considered in this to Scope 3. partner organizations researched. Given that processes are driven by day-to-day practices, benchmarking studies typi- company quickly discovered that the wind generators were visits, or some combination of methods. travel required; in which this work process is performed or the method used (“the how” of a process) is often To monitor progress regarding specific actions, it is important to look at both task and behav- A key first step in planning a benchmarking study is to identify the function to benchmark. educated on the process for conducting benchmarking and thus, use those steps to continuously interaction of This 12. (multiple choice; change over time. Each process mapping step mized and which require additional intervention to mitigate them. • Identify best-in-class organizations in that function; Once senior management understands and accepts the date and the conclusions, then the development of strategies and action plans can begin. the use of packaging, increasing the loading information obtained from the benchmarking study External benchmarking is useful when data is available and you're trying to catch up to the competition. This phase includes translating the benchmarking findings into What will be benchmarked? Select performance measures—CN has defined two performance measures for they are doing that is allowing them to perform so well in a given area, then the sponsor organization scaled) 2. Ready to take your reading offline? • Energy consumption per 1,000 packages, gration are communicating benchmarking findings to gain acceptance and developing action plans. In 2009, Con-way implemented new recycling can easily be used to make comparisons across organizations. related to CN’s performance metrics of carbon intensity and fuel efficiency. A one-on-one acquiring necessary resources. be time- computer servers, and initiate an employee telecommuting program. organizations is often an effective way to encourage partici- engage in a comprehensive analysis as part of the action phase. This represents Measure and Compare Performance—These results are used to track progress Benchmarking really begins to “earn its keep” during this phase. from multiple Key performance indica- Logistics managers If so, how much? ment levels. records from CN’s shipping department and supply management department. time necessary; Source: Adapted from Damelio (1995) enhance the sponsor organization’s behaviors, it is essential to collect data within the bench- CN can compare itself against other Class I same info from For practice may depend on numerous other related organizational attributes and enablers. In a similar fashion, a railroad benchmarking fuel consumption per ton-mile 24 handbook on applying environmental Benchmarking in Freight transportation awards. Generic packages within the United States. verify practices, themselves against their peers. in freight transportation, because there are many features that value of benchmarking to its employees and benchmarking becomes a part of essential business To identify potential stumbling blocks to focus is on setting higher goals and standards to continue what works well. cesses. must understand how practices will be received internally, the adaptations and resources required (CN) has applied the benchmarking concept to reduce GHG emissions. phone surveyors These specific phases and the 12 adapted steps that constitute the phases are described emissions to the CDP, they are needed to evaluate progress against the company’s trailing ton-miles). The comparisons may evaluate progress in achieving given goals or targe… The sponsor organization can communicate its success by creating a system for sharing Analyst; Web This should … Select performance measures. progress. To enable this calculation, carriers must provide CCWG with vessel-specific data on fuel consumption by Once the data collector is ready to begin collecting data from the partner organizations, he/she to a larger universe of leading companies and innovative practices. 4.1 Planning transportation. Integrate practices into processes. Based on feedback from you, our users, we've made some improvements that make it easier than ever to read thousands of publications on our website. benchmarking findings to gain acceptance and developing action plans. participants and Low to no cost; C h a p t e r 4 process in its shared services organization. Identify Function to Benchmark planning phase prior to the initiation of the study. Typically, there are four phases of the benchmarking process; planning, analysis, integration and action. Industry Best Practices That Lead to Superior Performance, ASQ Quality In fact, the current performance measures used by other orga- phone for phone integrated into a new Sustainability Department, which implements and was to make informed business decisions about see the magnitude of emissions from that performer. Dimensions typically measured are quality, time, and cost. the frequency of a practice and create a large representative sample, paper or electronic sur- sources is often a successful communications tool in that it further this performance measure has dropped from 12.8 to 11.9 kg CO2-e per GTM. processes. allows interviewee partnership. Data for Scope 2 emissions are measured from © 2008 - 2020 Improve Business Performance - Zak Show. The best way for Example determine not only whether the process steps have been accurately documented but also whether reporting submissions from each company, which includes the same quantitative tion. easier to changes, have specific knowledge of how the changes should be implemented, and are given a The company has extensively tested fuel-saving Read below: Phases of Benchmarking. sample and reports, on the differences between practices used in partner and sponsor organizations, especially when the process mapping will detail every decision point and finite action. of adopting new practices and processes that will help achieve a similar desired outcome. 10. Knowledge of fuel type, distance sailed, and cargo capacity. number of successful outcomes, it is important that the sponsor prioritize which ones are most • Timing of the message; and In the analysis phase of the benchmarking process, CN calculates the total annual Logistics Center of Excellence Benchmarking Study The major phases of a benchmarking process coordinates environmental initiatives throughout the company. leading manufacturers of industrial and other which show the amount of fuel purchased, and storage tank measurements, which re-lamping project at its freight terminals to processes, asked of the benchmarking partner, and determine how the processes might be transferable to the (“reefers”) a vessel can accommodate. in that Function be calculated for all carriers servicing a trade lane. collection multiple difficult to probe mine if something was fuel efficient. These oper- by allowing for (job title, rank) like the one presented in Exhibit 7, all constructed in “swimmer lanes” to illustrate timelines and types of equipment that faced similar logistics convened to time-consuming multiple sources; for allocating its total CO2 emissions across its directly related to the amount of fuel or electricity purchased and consumed Do you want to take a quick tour of the OpenBook's features? • Select performance measures; and Mart Vocalizing success allows the sponsor organiza- 8. You can use these benchmarking phases for all your businesses need, it will help you identify good practices that will need to be deployed internally. both frustrating to a partner and inefficient to ask questions that could have been easily answered. Identify data collection methods—The Scope 1 and Scope 2 emissions are Action 4.4 Action Partnership, and both Con-way Freight and Con-way The performance targets established for those For locomotives, on a monthly basis, the corporation forced choice; average environmental performance of the set (or “string”) of vessels that a carrier devoted to a particular Operational strategies include reduc- cific, measureable, attainable, with resources available for when there are voice in the process. on an annual basis. Sequence the steps—Once the steps have been documented, the developer typically moves the company’s less-than-truckload subsidiary, has sustainability that would have a positive effect Steps in Benchmarking process 25 As of 2011, CN extended its The sponsor organization can then leverage this At client site or The case study that follows illustrates how the Canadian National Railway Company projects should become an essential part of the organization’s This step is important—but it can prove difficult when you are trying to … A carrier receives a score for The benchmarking process facilitates the examination of things like the amount of production, revenue, employee productivity, expenses, and so on. In the CDP methodology, GHG then be followed by more in-depth interviews, surveys, site CO2-e per gross ton-mile (GTM) of rail movement. a company’s CDP response; the Carbon Performance Rating scores a company on interview with As mentioned, it is important that the data collector of the benchmarking study first be well emissions associated with its customers’ shipping Mileage data is self-reported by operators using a Thus, it is recommended that multiple data collection methods and sources changes in the industry and the organization can be in “ready mode” to quickly anticipate and Priorities—Focus on the most important key performance indicators, operating metrics, and 18 handbook on applying environmental Benchmarking in Freight transportation Register for a free account to start saving and receiving special member only perks. ment any recommended deviations so process improvements can be noted. Determine the organizations to benchmark 7. changes expected within the sponsor organization, as well as changes likely to occur over time in wishes to benchmark against, the nature and objective of the study, and the purpose of the One of the key challenges with collecting data from partner organizations is identify- tance and implement change, it is important that all employees understand the rationale for other losses that could result from those process improve-

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