Applying benchmarking in romanian enterprises.
Bretcu, Angela
1. INTRODUCTION
The Benchmarking can be defined as the practice to improve the
organisations performances by comparing it to the best ones on the
market. This represents a systematic and continuous process of comparing
own products, services, techniques, technologies, practices with similar
ones, in order to learn the significant differences with a purpose of
assimilating them. Practicing Benchmarking is comparable to seeking the
best methods utilized within an activity, this method allowing the
companies to improve their performances (Scurtu et al., 2006). The
Benchmarking is very popular in USA (Rank, Xerox, Rover, Alcoa), as well
as in Europe (Great Britain, Denmark, Belgium, Austria, Germany,
Sweden)(Magd et al., 2003). This concept bases itself on the fact that
the world is in a continuous evolution and represents the comparison of
the own enterprise with one or more identified organisations as being a
point of reference in a certain domain. In Romania, the Benchmarking is
poorly applied. The enterprises which have tried the implementation of
the method have had good results, but not as good as they expected,
although the phases and concrete modalities of approach have been
precisely followed. Due to certain economic particularities, determined
by the passing from the state economy to the market one, the
implementing phases must subject to some modifications, by which should
be kept into account the concrete conditions in which the economic
activity takes place. We must take into account that in Romania, the
principles of quality management are not often applied, reason for which
the Benchmarking takes longer than in other countries, takes more costs
and extra efforts. The external environment also intervenes in specific
conditions in Romania. Nevertheless, in this framework, the application
of Benchmarking is necessary for the Romanian enterprises to align to
European environment, as to performances and visions. It is important
that the research to be continued in the future, more profoundly, for
optimizing the benchmarking implementing conditions. In this sense
concrete research for applying the Benchmarking will be undertaken in
large enterprises from Romania, in order to highlight the
particularities of quality management.
2. INFORMATION
Therefore, the essence of Benchmarking is the process of borrowing
ideas and adapting them in order to achieve important advantages, so it
is a tool for continuous development(Juran, 2002).Starting from the idea
that benchmarking is a tool for continuous development; The European
Quality Organisation proposes an example of approach for benchmarking
which contains four phases of continuous improvement: planning,
collection, analysis and adaptation (Scurtu et al., 2006).
These phases of benchmarking process development imply setting out
and following some steps which differ depending on the stage of the
benchmarking process. For example, in the planning phase, the building
up of the team is essential, taking into account the performances of
each member, their knowledge and training regarding the process and the
details of the studied organisation.
The next step is the documentation related to the analysis process
and contains activities such as: identification of the analysis area,
identification of successfully critical factors, the development of the
quantification factors. Also the decision regarding the setting out of
the analysis goal for benchmarking must be taken. During the planning
phase the drawing up of a declaration concerning the purpose of
benchmarking takes place so as any deviation of the team's original
goal will be avoided.
The selection of the partners is also a very important step and
therefore the determination of the selection criteria for the partners
must be connected to the successful critical factors. The last step of
the planning phase consists in the determination of the collection for
the data plan, establishing therefore the instruments and techniques for
collecting of the information. The collection phase implies the
identification of the best practices and data collection. The developing
of the tools for data collecting is the next step and after the
selection of the target-organisations, the information must be
revaluated, collected and processed.
Before putting into practice the selected tools for the analysis,
they need to be tested within the own organisation, in other words, an
internal evaluation of the selected tools for the analysis takes place.
The selected partners for the analysis must be contacted and requested
for collaboration in the framework of the projected branch marking.
Within this phase, the selection of the partners may be done depending
on the interest for the proposed analysis (Falnita, 2000).
Within the analysis phase of the benchmarking process, comparison
of own performances with the ones of the competition implies the sorting
and the processing of the data, adapting the gathered up information to
a specific form, favourable for comparison and identifying the
differences. The next step is the identification of operations such as
"the best practice" and the development of the implementation
strategy, which implies the evaluation of solutions adaptability, the
identifying of the opportunities for improvement and the analysis of the
costs(Stanciu, 2002). An important problem within this phase is the
communication and the discussion of the implementing plan with the
involved parties, making it possible for certain changes to occur, in
this initial phases, if they are needed. The last phase proposed by The
European Quality Organisation, the adopting phase, implies in the first
place the implementation of the plan. At this level it is very important
to apply all the solutions initially elaborated, without being
interpreted or "dissolved". Furthermore, the superior
leadership must periodically request reports regarding the implementing
of the improved plan, therefore achieving the monitoring and reporting
of the progress. The information resulted from the study, as well as all
of the developed methodology must be systematized and registered in
order to be of service to other studies. This step is called the
recalibration and recycling of the study. Finally, a continuous
improvement plan is elaborated, by identifying new opportunities for
benchmarking. Because the Benchmarking process involves more imitation and adaptation than pure invention, the time and money are saved.
Nevertheless, by developing such a process one must take into account
certain requests and the satisfaction of these requests contributes to
achieving the proposed goals. In this respect, there are four
fundamental principles of benchmarking. A first principle is
reciprocity, namely a good service deserves a good answer. Another
principle, the analogy, states that the products of the benchmarking
partners must be comparable. Likewise, the correct choice for the
measurement system is very important because the gathered information
must be seen in a favourable form for comparison. More, the correctness
of the information which is to be exchanged must be guaranteed. In
conclusion, the benchmarking is not a strategy and does not intend to be
a business philosophy; it is instead a developing tool and in order to
be efficient, must be used as such. All of the economic agents of
Romania must take interest in Benchmarking, regardless the form of
property. It is important to underline the fact that Romania has lost
two major events because of the old system: the technological and
managerial revolution. In this framework, the private capital
enterprises took over from the state capital enterprises, together with
the means of production and the work force, a number of difficulties,
connected to the technological depreciation of the equipment and the
employers' mentality. At present time in Romania, there are a few
enterprises with a private capital, equipped with the nowadays
technological level, with an organisational culture and managerial
practices proper for benchmarking implementation. In the planning phase,
in order to achieve a benchmarking activity, best practices in certain
precise conditions must be identified. Without a detailed knowledge of
the conditions in which a practice can be successful, the benchmarking
may offer incorrect conclusions, because similar practices cannot
generate identical results in different contexts. First of all, there
must be taken into consideration the fact that there are few enterprises
which implement quality management. The superficiality of principles
implementation manifests itself from the managers' side and from
the employees' side. Besides that, it is very frequent that the
continuous improvement is not applied and as far as the diagnosis
analysis goes, if it is applied, it is only in a formal way. Under these
conditions, the team that implements the Benchmarking process will have
to put in time and additional resources for the correct identification
of the successful critical factors. Second of all, there are, even in
the present time a series of anomalies which could alter the
Benchmarking effects. One of this is the employees' mentality,
which can act as a brake within the economic activity, however
performing the technology may be. The introduction of practices that
depend on the environment, in which the economic agent operates, must be
then delayed until the amelioration of those conditions. Within the
analysis phase, it is very important for the external environment to be
understood by the leaders of the Benchmarking study. A first aspect
would be the proportion in which the general environment may create
barriers while introducing identified practices, on its different
components. In the framework of economic segment, the identified
barriers are the inflation rate and interest rate, in the political and
legal context, the laws regarding taxes and incomes and in the
technological context; the identified barriers are the levels of
telecommunication and infrastructure compatibility.
Another aspect that needs to be studied is the proportion in which
the conjuncture may diminish the effects of practice application.
Therefore, in the political and legal context, the effects are
diminished by the legislation regarding economic and rivalry contracts
and the social and cultural context influence these effects through the
employees' mentality and attitude. Also important is the proportion
in which the positive effects of the Benchmarking process justify the
efforts. Considering that by introducing the best practices through an
economic agent in Romania, this meaning a significant financial effort,
the indicators may be smaller than the ones that may be achieved within
the same project but in developed countries. This is due to the
conditions of obtaining credits, the high level of fiscality and other
barriers. Because of the low wages level, the contributions to costs
reduction are therefore less significant. Within the adaptation phase,
the success of the project will nevertheless open, through the economic
agent, the way to a process of continuous improvement. The monitoring of
the process is difficult because of the lack of monitoring systems that
measure the main performance indicators. In spite of these deficiencies,
the Benchmarking represents an effective way for the producers to
assimilate the best practices, reason for its continuance. By learning
the best achievements of the time, some research stages, already covered
by others, can be eliminated, saving therefore significant financial and
time resources. The Benchmarking can also contribute to avoiding
repeated mistakes, by analysing unsuccessful experiences. By using
Benchmarking the organisations will be obligated to change their
traditional behaviour and introduce new practices within their current
activity, such as: permanent evaluations, implementing measurements
regarding each sector, depending on strong points, week points,
opportunities and revaluation of employees, through the process of
continuous improvement. A favourable climate is essential for
Benchmarking implementation, by eliminating wrong perceptions regarding
this method, by sustaining the knowledge of the system through
governmental programmes, that should keep into account not only the
dissemination of information but also the organisation and development
of research institutes, by establishing doctorates and master degrees
containing this profile within the universities, by creating of an
interactive website for the partners actively involved in Benchmarking
implementing.
3. CONCLUSION
Efforts need to be made for a future Benchmarking study, because
this is the only way to hurry the change of wrong mentalities regarding
economic activity and to achieve the positive role of competitiveness
for a profitable business, the practices regarding research and
development, understanding the need for transparency. By implementing
Benchmarking in reference enterprises some important contributions will
be therefore brought to the coherent development of innovation,
investment, in the regional and social domain.
4. REFERENCES
Falnita E. (2000e). Benchmarking in small and medium entreprises,
VEB, nr. 53:9,16
Juran, J.M. (2002). Supremacy through quality, Teora Publishing
House, ISBN 973-601-965-9, Bucharest
Magd, H. & Curry, A. (2003). Benchmarcking achieving best value
in public-sector organisations, Benchmarking, 10,3:261-273
Scurtu, V.; Russu, C. & Popescu I. (2006). Benchmarking Theory
and applications, Economic Publishing House, ISBN973-709-165-5,
Bucharest
Stanciu, I. (2002). Calitology, The Science of merchandise quality,
Oscar Print Publishing House, ISBN 973-833803-4, Bucharest
