Benchmarking at industry level requires Key Performance Indicators such as those being developed by TRADA Technology and the Construction Products Association, covering customer satisfaction, ‘people’ and environmental issues. Companies in the timber trade are either setting their own benchmarks or using ready-made management tools.
“Benchmarking gives you a map from which you can plan targeted investment to improve your business,” explained Mindy Wilson, head of the CBI’s Business Performance Group.
In the timber trade, monitoring competitive sales and service levels is a common form of benchmarking. Manufacturing and product performance are also natural focus points because of the investments involved. Leading companies are additionally using performance indicators relating to staff and environment.
International comparisons
Mick Toner, manager of Howarth Windows’ factory, doesn’t perceive its method of keeping ahead as true benchmarking. “We simply set out to be the best we can be. We look around the world for innovation, best practice and the top competitive products and compare them to our own output and methods. We’ve travelled as far afield as Australia, Germany, Canada and Norway visiting window factories and looking at machinery and techniques. We’re off to Italy shortly to look at new innovations there. We aim to plan roughly three years ahead: you have to take a very proactive stance if you want to be the top manufacturer in your field.”
With the differing requirements of bespoke projects, defining performance indicators for benchmarking can be more difficult, said Pat Derrick, joinery estimator of Wallis Joinery Ltd. “We recognise that for larger projects we come up against the same competitors time and again. We are reviewing how we measure up in terms of service but other factors depend entirely on the variables associated with the particular job in hand.”
Recruitment
Benchmarking also contributes to recruiting and retaining the best staff. Greater staff retention has been proven to increase customer retention and improved profitability. Builders’ merchants JT Dove in Newcastle upon Tyne is developing training as a competitive differentiator.
“We sometimes find we are the instigators of training which we then offer to other members of the Builders’ Merchants Federation locally,” said JT Dove training manager Ian Stevenson. “Staff retention is as important as our reputation at the recruitment stage so we aim to explore each individual’s training needs. As part of our Investors In People status we hold ‘job chats’ to identify employees’ requirements and aspirations and develop training scenarios to fit them. Proof of our effectiveness comes through awards: one of our trainees has just been awarded ‘Student of the Year’ by the North East Chamber of Commerce.”
Corporate Responsibility Index
In March, Business in the Community launched its first Corporate Responsibility Index, comparing companies’ effectiveness in translating strategy and business values into market place behaviour, workplace ethics, environmental management and community liaison. This incorporates the former Business in the Environment performance assessment scheme. Travis Perkins is among those using these tools.
In the areas of environment and community the competitive reasons for benchmarking are still unclear to some in the timber trade. The TTF is addressing this through its study of corporate social responsibility. “Timber’s reputation directly affects our business performance,” said Richard Sykes, managing director of Sykes Timber. “Part of our corporate responsibility as a timber merchant is to give something back to our local community, and to educate young people on the sustainability of the materials we use. Our schools work benefits our business in the long run since it’s in our interests to develop a pool of local talent and enthusiasm into which we can dip in the future. It’s also useful to have an educated future potential customer base.”
As timber competes with other materials for product attention, environmental acknowledgement and recruits, it’s becoming essential that businesses use benchmarking to identify their strengths and weaknesses and to emphasise their company values.
