Industry Best Practices Benchmarking

A "benchmarking culture" is achieved by continuously encouraging the use of benchmarking data and best practices sharing to genuinely solve performance problems, not just to compare yourself to others. …It’s easy to use benchmarking as a means to an end by saying, "I’m better" or "worse" than my peers. The real value is when you use the data to develop new processes, to determine different decision-making criteria, or to drive real change that leads to performance improvement in an organization or even an entire industry.

Douglas Dale, Strategic Manager for Detroit Edison at the EUCG March 2007 Benchmarking Workshop

Within the construction industry, the metrics against which an auditor measures the performance of a program or project management functions are generally referred to as "benchmarks" and the process of comparison known as "benchmarking." The only difference between establishing metrics and benchmarking is, generally, that metrics implies a numerical/statistical comparison between the program/project under audit and some statistically established and normalized database of past results from historical programs/projects. The only such statistical database in existence—and in common use—within the construction industry is focused entirely on worker safety, with statistics established by both the insurance industry and the United States' Department of Occupational Safety and Health Administration ("OSHA"). Using those historical normalized statistics, an audit of program/project safety is performed using specific statistical metrics.

Benchmarking is a process by which the policies, procedures, processes, and practices employed by a construction program or project management are compared against what are generally acknowledged within the construction industry to represent either "standard industry practices" or "industry best practices." There are differences between a standard practice (e.g. use of a project schedule) and a best practice (e.g. use of a computerized logic tied critical path method schedule). As part of the audit planning process, the client and Pegasus-Global generally set the level of "benchmarks" (standard industry or best practice) against which the program or project management functions are to be compared and evaluated. As a leading expert in this field, Pegasus-Global consistently identifies the standard or best industry practice benchmarks and can compare those standards against third-parties to ensure the policies, procedures, processes and practices employed by the client are advancing towards "best-in-class" standards across industries.

We think it important to point out what differentiates Pegasus-Global from other firms when it comes to benchmarking. While we most certainly have a vast amount of technical experience, we are proud of the reputation we have built as one of the leading experts in the energy and infrastructure industries on global megaprojects, which has come from the depth of relationships we have within the industry with our clients. While this may appear to be a minor point, we believe the success of a client's benchmarking initiative in no small way will depend upon finding a provider who can successfully leverage those relationships to achieve the objective. Based on our client relationships, the willingness of our clients to participate and assist us in the success of this endeavor has been overwhelming. These clients are among the largest in their respective industries and have faced and overcome vast challenges with the help of Pegasus-Global.

Over the past 30 years, Pegasus-Global has captured in its database the key aspects of its clients' policies, procedures, and process. Our extensive database, as well as institutional knowledge as experts in the energy and infrastructure industries, allows us to not only understand the similarities but uniqueness of the items identified by the internal benchmarking that provides for much richer and meaningful data in the execution of external third-party benchmarking. Additionally, our extensive experience in the creation of improvement plans for these clients based upon our proprietary benchmarking process allows Pegasus-Global to better customize its plans to create the greatest opportunity for client success. Pegasus-Global has consistently used this data, as prescribed above, to develop new processes, to determine different decision-making criteria, and to drive real change that has led to performance improvement in organizations as well as enhancements throughout the energy and infrastructure industries.