INBENCH

agreement

Version 1.0, 4 August, 1998

Entered into and between the fixed line telecommunications network operator companies listed in Appendix A, hereinafter jointly referred to as the Members, concerning the conditions of establishing an International Network Benchmarking Group (INBENCH) and the work of INBENCH.

The Members agree as follows:

1. Background and purpose of INBENCH

1.1. Background

This agreement further regulates the establishment and the operations of the INTERNATIONAL NETWORK BENCHMARKING GROUP (INBENCH) founded at Telenor AS’ initiative in Oslo on 11-12 March 1998.

1.2. Purpose

The objective of INBENCH is to collect and present strategic network key indicators for improving quality of service for each of the Members.

The objective shall be reached through, on an ongoing, cost effective, confidential and blinded basis, providing such information as described in Section 2 to a Trusted Third Party (TTP), for analysis and receive a structured presentation fron the TTP, pursuant to Section 4 of this Agreement.

INBENCH aims at increasing the number of participating members, thereby increasing the value of the benchmarking output and reduce the costs shared by each Member.

No partnership or direct co-operation in relation to provision of telecommunication services shall be construed or created through INBENCH and this Agreement.

None of the Members may enter into agreements on behalf of or legally binding another Member through membership in INBENCH or under this agreement.

In the short term, in practice in the calendar year 1998, INBENCH will conduct an initial benchmarking study. The studies will comprise information within the categories set out and specified in Section 2 of this Agreement. Beginning in 1999, INBENCH will aim to organise two studies per calendar year (subject to final decision in the 1999 Plenary Meeting). The study will comprise information within the categories set out in Section 2 in this Agreement.

2.1. Information to be collected, analysed and presented in the studies

The information that will be collected, analysed and presented pursuant to clause 1.2, shall be within the following broad categories:

• Network development,
• Operations and maintenance,
• Productivity
• Financial performance, and
• Customer satisfaction

Further details and specification of the particular scope of the information will be decided by the PM on the basis of consensus.

3.1. The Plenary Meeting (PM) and Working Meetings (WM)

The Plenary Meeting (PM) aims to convene during the first quarter of every calendar year.

The Chairperson shall decide, after consultation with the Members, the date and venue of the PM/WM and duly notify the Members in writing of the PM no later than 6 -six- weeks in advance for the PM and no later than 1 – one – week in advance for the WM.

At the PM the Members shall elect the Chairperson by a majority of votes. The inaugural meeting in Oslo in March 1998 constituted the first PM.

Each Member has one vote in all decisions that shall be taken by the PM or by the Members pursuant to this Agreement.

A majority vote shall under this Agreement be construed from a simple majority of the Members participating in the PM/WM. In the case of equal votes, the Chairperson shall have two votes.

3.2. The Chairperson

The Chairperson shall co-ordinate the work between the Members and liaise with the TTP on behalf of the Members.

The Chairperson shall act on behalf of, and in consultation with, all Members, to conduct and carry out the aims and tasks of INBENCH as described in this agreement.

The Chairperson shall update the Members by E-mail or telefax at least once a month of any activities in INBENCH, including, but not limited to, request for new membership, termination of membership, TTP activities and other relevant activities.

The Chairperson shall issue a Call for Tenders pursuant to subsection 4.1 and propose to the Members a suggested TTP.

The Chairperson shall take all reasonable and possible precautions regarding anti-trust issues and INBENCH compliance with relevant laws.

Should the number of Members increase beyond 15 –fifteen-, the Chairperson is free to propose a new working arrangement to reflect the increased number. The proposal shall be subject to decision by a majority vote by the PM/WM.

The Chairperson may terminate his/her position at the PM after giving 1 months written notice before the PM. If the Chairperson decides to terminate the position at any other time, the Chairperson must take the necessary steps to secure succession by informing INBENCH and assisting the Members in the appointment of a successor.

The Chairperson shall notify the Members of PM and WM, pursuant to subsection 3.1.

3.3. Codes of Conduct

Members will use reasonable endeavours to abide by the terms and within the spirit of the European Benchmarking Code of Conduct and the Benchmarking Code of Conduct of the American Productivity and Quality Centre (APQC), where it is reasonably practicable to do so. These Codes of Conduct will be furnished to all INBENCH Members by the Chairperson.

3.1. Paramountcy

In case of conflict between the above mentioned Codes, the European Benchmarking Code of Conduct shall prevail over the Benchmarking Code of Condust of the APQC.

To the extent that either such code of conduct is inconsistent with clause 7 of this Agreement, the provisions of clause 7 shall prevail.

4. Trusted Third Party

INBENCH chooses a TTP to conduct the benchmarking study/studies.

4.1. Selection of Trusted Third Party

The Chairperson shall issue a Call for tenders to relevant independent consultancies. The Chairperson shall thereafter issue a Call for tender to relevant independent consultancies if the Contract with the TTP, pursuant to subsection 4.2, expires or is terminated or if a Member proposes to issue such Call for tender at the latest 2 months before the Contract ends. The Chairperson shall propose a short list of at least 2 tenders from the responding consultancies, after the Chairperson’s evaluation. Any member may:

1. forward this call to an independent consultancy of his/her choice; and/or
2. comment on the proposed appointment of a TTP.

If any of the Members appose the proposed candidate, the Chairperson shall call a WM for the selection of the TTP by a majority vote.

Before 31 August 1998 INBENCH shall have chosen a TTP and entered into Contracts (hereinafter "TTP Contract").

4.2. The Trusted Third Party Contract

The selected TTP will be requested to warrant the confidentiality of the assignment. The INBENCH Members are free to identify the TTP as their supplier subject to a majority decision by the Members during a PM/WM pursuant to subsection 3.1.

The selected TTP shall hold in trust and confidence any and all confidential/proprietary information supplied by the INBENCH members pursuant to subsection 7.3.

Each Member signs a Contract with the TTP in full accordance with this Agreement. This Agreement shall be a part of those Contracts and shall be placed as appendices to them.

The Contracts shall cover the period of the first benchmarking study, starting at the signing of the contract with the TTP and ending 1 year after the signing of the contract with the TTP, ("the first Benchmark period") with an option for renewal on an annual basis, unless:

1. the PM decides otherwise; or
2. any Member gives the PM and the Trusted Third Party written notice that it wishes to withdraw from INBENCH, in which case clause 7.2(e) will apply.

The TTP shall also offer an individual presentation of the initial study to every Member at the headquarter of the latter. The same applies for the first study that new Members take part in. Other than this, Members shall agree on terms for visits and presentations separately with the TTP.

5.1. Membership

Any fixed line telecommunications network operator may request to participate in the INBENCH by filing a request to the Chairperson. The Chairperson shall notify the Members about such requests immediately.

Unless a Member objects to the requesting party’s participation within 10 working days from the notification, the requesting party will be registered as a Member by signing this Agreement.

If a Member objects to registering a requesting party the Member shall state objectively justifiable and documented reasons and a decision shall be taken by a majority of votes during a WM called by the Chairperson for this purpose pursuant to section 3.1.

5.2. Leaving the group

Subject to clause 7.2(d) of this agreement, any Member may leave INBENCH at any time, but must honour the obligations under this Agreement, in particular the financial contributions applicable to each study in which the Leaving Member has participated, as of the date that Member leaves the group. Such participation shall be considered to be from the earliest of the following events:

• The signing of the TTP Contract by the Leaving Member; or
• Contribution from the Leaving Member to the studies of information; or
• Receipt of a study report.

6. Financial affairs

During the work of the PM, every Member covers his/her own expenses.

When the TTP Contracts have been signed, the TTP shall invoice all members separately, according to the terms of the particular TTP Contract. The individual invoice would not be expected to exceed USD 20,000 (initial study) or USD 10,000 (per later study). However, INBENCH ultimately decides by a majority what amount will be spent for the TTP.

7. Confidentiality

Confidentiality is paramount for the group’s work and success. Therefore;

Having finished the data collection and analysis work, the TTP shall provide every Member with an individual report where all data except for the Member in question are carefully made anonymous according to detailed specifications made out in the Contracts.

7.1. Confidential Information

For the purpose of this Agreement "Confidential Information" of a Member shall mean any and all information (whether written, oral or in machine readable form, knowledge, data, drawings, know-how, analysis, computations, studies and other materials) relating to the business operations of a Member, (including, without limitation, the Member’s fixed line Network telecommunications operations or its systems, customers, properties, assets or affairs), communicated by the Member ("Disclosing Member") to or learnt by the TTP or to another Member ("Receiving Member"), regardless of whether the Confidential Information is communicated directly from Member to Member or to the TTP or through someone acting directly or indirectly except for:

1. any information publicly available and in the public domain at the time of disclosure, unless disclosed through breach of this Agreement
2. any information publicly available and in the public domain by voluntary action of the Disclosing Member itself for the purpose of making its own information available to the public, at any time after the information has been given from the Disclosing Member to the TTP or the Receiving Member
3. any information disclosed by the Parties to the extent that disclosure is required by law or any regulation.

7.2. Confidentiality between Members

7.2(a) Any Confidential Information of a Member disclosed by it or shared between Members, either directly, through the TTP or at meetings, shall be treated by the Receiving Member as confidential, only used for internal benchmarking purposes and will not be free for communication, disclosure, publication or dissemination, outside the Member’s Companies.

7.2(b) A Receiving Member may disclose Confidential Information of a Disclosing Member (to the extent required) in order to comply with any applicable law or legally binding order of any court, government, semi government authority, administrative or judicial body or recognized stock exchange, provided the relevant Member must, where possible, ensure that any such body to whom such Confidential Information is disclosed is made aware of the Confidential nature of the information.

7.2(c) No Member may use the activities in INBENCH for purposes other than the use specified in this agreement. Any evidence of industry espionage - actual or attempted - will lead to immediate expulsion from INBENCH and other remedies as appropriate.

7.2(d) Following withdrawal by any Member ("Withdrawing Member") from INBENCH and pursuant to a written request from the Withdrawing Member to each of the other Members individually specifying and identifying Confidential Information, each Member must, at its own expense, deliver to the Withdrawing Member or, with the Withdrawing Member’s prior written consent, destroy or erase all documents and media in which any Confidential Information of the Withdrawing Member is recorded or from which it may be reproduced (including any copies thereof) which is in the possession or control of that Member or any Member Company of that Member.

7.2(e) Each Member acknowledges that damages will not be a sufficient remedy for a Disclosing Member for any breach of this clause and such Disclosing Member will be entitled to specific performance or injunctive relief where appropriate as a remedy for any breach or threatened breach of this clause 7, in addition to any remedy available to such Disclosing Member at law or in equity.

7.2(f) Any legal proceedings initiated by the aggrieved party against the party acting against the rules of this agreement shall be decided and/or carried out by the Members themselves and not by INBENCH.

7.3. The responsibility of the Trusted Third Party

The TTP must maintain the highest level of ethics, confidentiality and professionalism. These demands must be reflected in the TTP Contracts with the selected TTP. In addition, the following obligations should be imposed on the TTP in each Contact:

7.3(a) General Obligations of the TTP

1. The TTP must, as soon as practicable following execution of this Agreement, assign a code letter ("Code") to each Member for the purposes of this Agreement (including, without limitation, for displaying the data in any report and/or presentation);
2. The TTP must keep confidential and not, without the prior written approval of the relevant Member, disclose that Member’s Code to any other person;
3. The TTP must, immediately following the admission of a new Member to the group, assign a new Code to each Member;
4. The TTP will use the same care and discretion to avoid disclosure, publication or dissemination of Confidential Information of any Member as it uses with its own similar information that it does not wish to disclose, publish or disseminate;

7.3(b) Permitted Disclosures

1. The TTP may disclose Confidential Information of Members to its officers and employees who have a need to know and its professional advisers who have need to know provided that before disclosure to any such officer, employee or professional adviser, the TTP ensures that such employee or professional adviser is under an obligation of confidence to the TTP in respect of the Confidential Information; and
2. The TTP may disclose Confidential Information of Members to any contractor of the TTP for the purposes of this Agreement, provided that before disclosure to any such contractor:

1. the TTP ensures that such contractor is under an obligation of confidence to the TTP in respect of the Confidential Information;
2. except for the purpose of preparing a report or presentation for the group, the TTP informs the relevant Member that the Confidential Information will be disclosed to such contractor; and
3. if required by any Member (who shall notify the TTP of any such requirement within 7 days of notification under clause 7.3(b)(ii)(B)), the contractor enters into a confidentiality agreement with the relevant Member in a form and substance reasonably acceptable to that Member;

3. The TTP may disclose Confidential Information of a Member (to the extent required) in order to comply with any applicable law or legally binding order of any court, government, semi-government authority, administrative or judicial body or recognized stock exchange. However, the TTP must, where possible, ensure that any such body to whom wuch Confidential Information is disclosed, is made aware of the confidential nature of the information;
4. The TTP shall not disclose Confidential Information of any Member otherwise than as permitted by this clause 7, or when the TTP has:

1. obtained the prior written consent of the relevant Disclosing Member; and
2. procured that the person to whom the Confidential Information is to be disclosed, releases and indemnifies the relevant Member from all claims, actions, loss or liability arising out of or in connection with such disclosure or with the use by that person of that Confidential Information;

5. In the event of any loss or inability to account for the Confidential Information of any Member, the TTP must promptly notify the relevant Member in writing.

7.3(c) Remedies

The TTP acknowledges that damages may not be a sufficient remedy for any Member for any breach of this clause and the relevant Member is entitled to specific performance or injunctive relief where appropriate as a remedy for any breach or threatened breach of this clause, in addition to any remedy available to the relevant Member at law or in equity.

7. Dismissal for Breach

In case of a breach of the responsibility or any other obligation under the TTP Contracts, the TTP shall be dismissed and should pay liquidated damages of at least USD 150,000.00 to the Member or each of the Members that have been affected by such a breach. The chairperson is under an obligation to enter this rule into the Contracts with the TTP.

7.4. Survival of obligations

The rights and obligations under this Section 7 survive termination of this agreement for a period of 5 years from the date each Member signs the Agreement and a period of 10 years for the rights and obligations under subsection 7.3.

8. Choice of Law and dispute resolution

This agreement, the Contracts with the chosen TTP and any other legal procedures or documents shall be governed by and construed in accordance with UNIDROIT Principles of Commercial Contracts.

All disputes arising out of or in connection with the present Agreement shall be finally settled under the Rules of Arbitration of the International Chamber of Commerce by one or more arbitrators appointed in accordance with the said Rules. Such arbitration is to take place in Paris in the English language.

9. Signature and binding nature of Agreement

The foregoing accurately represents the general understanding between the Members in this matter and shall enter into effect on an individual basis from the day of signature set out below.

This Agreement is agreed and accepted by the signatories on behalf of their respective companies. Furthermore the signing parties affirm to be bound by this Agreement also in relation to any new member upon its later signing.

Signatures are considered to be binding by signing the Letter of Signature forming an integral part of this Agreement together with Appendix A containing a list of the Members. Appendix A will be updated by the Chairperson and is considered to be binding only by a signed Letter of Signature as specified in Appendix A.

Appendix A – Members of INBENCH

This Appendix forms an integral part of the INBENCH agreement and shall be updated by the Chairperson pursuant to the procedure set forth in Section 9 to the Agreement whereby the signing parties affirm to be bound by this Agreement also in relation to any new member upon its later signing.

[Company],

incorporated and existing under the laws of [home country] with its registered office at [Office Address] represented by the duly authorised officer by the name: as confirmed by a separate Letter of Signature dated […….] as set out in Section 9 to the Agreement.

[Company],

incorporated and existing under the laws of [home country] with its registered office at [Office Address] represented by the duly authorised officer by the name: as confirmed by a separate Letter of Signature dated […….] as set out in Section 9 to the Agreement.

[Company],

incorporated and existing under the laws of [home country] with its registered office at [Office Address] represented by the duly authorised officer by the name: as confirmed by a separate Letter of Signature dated […….] as set out in Section 9 to the Agreement.

[Company],

incorporated and existing under the laws of [home country] with its registered office at [Office Address] represented by the duly authorised officer by the name: as confirmed by a separate Letter of Signature dated […….] as set out in Section 9 to the Agreement.

[Company],

incorporated and existing under the laws of [home country] with its registered office at [Office Address] represented by the duly authorised officer by the name: as confirmed by a separate Letter of Signature dated […….] as set out in Section 9 to the Agreement.

[Company],

incorporated and existing under the laws of [home country] with its registered office at [Office Address] represented by the duly authorised officer by the name: as confirmed by a separate Letter of Signature dated […….] as set out in Section 9 to the Agreement.

[Company],

incorporated and existing under the laws of [home country] with its registered office at [Office Address] represented by the duly authorised officer by the name: as confirmed by a separate Letter of Signature dated […….] as set out in Section 9 to the Agreement.

[Company],

incorporated and existing under the laws of [home country] with its registered office at [Office Address] represented by the duly authorised officer by the name: as confirmed by a separate Letter of Signature dated […….] as set out in Section 9 to the Agreement.

[Company],

incorporated and existing under the laws of [home country] with its registered office at [Office Address] represented by the duly authorised officer by the name: as confirmed by a separate Letter of Signature dated […….] as set out in Section 9 to the Agreement.

[Company],

incorporated and existing under the laws of [home country] with its registered office at [Office Address] represented by the duly authorised officer by the name: as confirmed by a separate Letter of Signature dated […….] as set out in Section 9 to the Agreement.

[Company],

incorporated and existing under the laws of [home country] with its registered office at [Office Address] represented by the duly authorised officer by the name: as confirmed by a separate Letter of Signature dated […….] as set out in Section 9 to the Agreement.

[Company],

incorporated and existing under the laws of [home country] with its registered office at [Office Address] represented by the duly authorised officer by the name: as confirmed by a separate Letter of Signature dated […….] as set out in Section 9 to the Agreement.

[Company],

incorporated and existing under the laws of [home country] with its registered office at [Office Address] represented by the duly authorised officer by the name: as confirmed by a separate Letter of Signature dated […….] as set out in Section 9 to the Agreement.

[Company],

incorporated and existing under the laws of [home country] with its registered office at [Office Address] represented by the duly authorised officer by the name: as confirmed by a separate Letter of Signature dated […….] as set out in Section 9 to the Agreement.

[Company],

incorporated and existing under the laws of [home country] with its registered office at [Office Address] represented by the duly authorised officer by the name: as confirmed by a separate Letter of Signature dated […….] as set out in Section 9 to the Agreement.

By signing this Letter of Signature the INBENCH Agreement version 1.0. dated ……………as attached to this Letter of Signature is agreed and accepted by the signatories on behalf of their respective companies.

Furthermore the signing parties affirm to be bound by this Agreement also in relation to any new member upon its later signing.

…………………….[Company],

incorporated and existing under the laws of ……………………………[home country] with its registered office at ……………………………………………………………..[Office Address]

represented by the duly authorised officer by the name……………………………………:

as confirmed by this Letter of Signature dated ……./…………1998 as set out in Section 9 to the INBENCH Agreement.

Annex 1

The European Benchmarking Code of Conduct

This Code of Conduct is the result of a consultation and development process co-ordinated by The Performance Improvement Group with the help of The Eurocode Working Group. The Eurocode Working Group comprises senior Benchmarking managers and legal representatives from the following organisations:

The Quality Network

Chris Mitchell, Post Office Counters Limited, Tel: +44 (0)171 833 1813

Introduction

Adherence to this Code will contribute to efficient, effective and ethical benchmarking.

European Benchmarking Code of Conduct

8.1 Understand how your benchmarking partner would like to be treated, and treat them in that way.

8.2 Agree how your partner expects you to use the information provided, and do not use it in any way that would break that agreement.

Important Notice: This Code of Conduct is not a legally binding document. Though all due care has been taken in its preparation, the authors and sponsors will not be held responsible for any legal or other action resulting directly or indirectly from adherence to this Code of Conduct. It is for guidance only and does not imply protection or immunity from the law.

 

 

 

 

 

 

Benchmarking Protocol

• Know and abide by the European Benchmarking Code of Conduct.
• Have basic knowledge of benchmarking and follow a benchmarking process.
• Should have:
• Determined what to benchmark
• Identified key performance variables to study
• Recognised superior performing organisations
• Completed a rigorous internal analysis of the process to be benchmarked before initiating contact with potential benchmarking partners.
• Prepare a questionnaire and interview guide, and share these in advance if requested.
• Possess the authority to share and are willing to share information with benchmarking partners.
• Work through a specified contact and mutually agreed arrangements.

Benchmarking with Competitors

• In benchmarking with competitors, ensure compliance with competition law.
• Always take legal advice before benchmarking with competitors. (Note: When cost is closely linked to price, sharing cost data can be considered to be the same as price sharing).
• Do not ask competitors for sensitive data or cause the benchmarking partner to feel they must provide such data to keep the process going.
• Do not ask competitors for data outside the agreed scope of the study.
• Consider using an experienced and reputable third party to assemble and 'blind' competitive data.
• Any information obtained from a benchmarking partner should be treated as you would treat any internal, confidential communication. If 'confidential' or 'proprietary' material is to be exchanged, then a specific agreement should be executed to indicate the content of the material that needs to be protected, the duration of the period of protection, the conditions for permitting access to the material, and the specific handling requirements that are necessary for that material.

Preamble

Benchmarking – the process of identifying and learning from best practices anywhere in the world – is a powerful tool in the quest for continuous improvement and breakthroughs. To guide benchmarking encounters, to advance the professionalism and effectiveness of benchmarking, and to help protect its members from harm, the International Benchmarking Clearinghouse, a service of the American Productivity & Quality Center, has adopted this Code of Conduct. Adherence to this Code will contribute to efficient, effective and ethical benchmarking.

About APQC

The American Productivity & Quality Center (APQC) is a business-oriented non-profit source for performance improvement and decision support – information and knowledge, networking, research, training, and advisory services. Organizations of all sizes and industries – business, government, education and health care – partner with APQC to discover global best practices and grow into learning organizations.

For more information about APQC’s services, including the International Benchmarking Clearinghouse and the Institute for Education Best Practices, call 800-776-9676 (713-681-4020 outside the U.S.), email to apqcinfo@apqc.org, or visit our website at http://www.apqc.org.

1.0 Principle of Legality

1.1 If there is any potential question on the legality of an activity, consult with your corporate counsel.

1.2 Avoid discussions or actions that could lead to or imply an interest in restraint of trade, market and/or customer allocation schemes, price fixing, dealing arrangements, bid rigging, or bribery. Don’t discuss costs with competitors if costs are an element of pricing.

1.3 Refrain from the acquisition of trade secrets from another by any means that could be interpreted as improper including the breach or inducement of a breach of any duty to maintain secrecy. Do not disclose or use any trade secret that may have been obtained through improper means or that was disclosed by another in violation of duty to maintain its secrecy or limit its use.

1.4

Do not, as a consultant or client, extend benchmarking study findings to another company without first ensuring that the data is appropriately blinded and anonymous so that the participants’ identities are protected.

2.0 Principle of Exchange

2.1 Be willing to provide the same type and level of information that you request from your benchmarking partner to your benchmarking partner.

2.2 Communicate fully and early in the relationship to clarify expectations, avoid misunderstanding, and establish mutual interest in the benchmarking exchange.

2.3 Be honest and complete.

3.0 Principle of Confidentiality

3.1 Treat benchmarking interchange as confidential to the individuals and companies involved. Information must not be communicated outside the partnering organizations without the prior consent of the benchmarking partner who shared the information.

3.1 A company’s participation in a study is confidential and should not be communicated externally without their prior permission.

4.0 Principle of Use

4.1 Use information obtained through benchmarking only for purposes stated to the benchmarking partner.

4.2 The use or communication of a benchmarking partner’s name with the data obtained or practices observed requires the prior permission of that partner.

4.3 Contact lists or other contact information provided by the International Benchmarking Clearinghouse in any form may not be used for purposes other than benchmarking and networking.

5.0 Principle of Contact

5.1 Respect the corporate culture of partner companies and work within mutually agreed procedures.

5.2 Use benchmarking contacts, designated by the partner company if that is their preferred procedure.

5.3 Obtain mutual agreement with the designated benchmarking contact on any hand-off of communication or responsibility to other parties.

5.4 Obtain an individual’s permission before providing his or her name in response to a contact request.

5.5 Avoid communicating a contact’s name in an open forum without the contact’s prior permission.

6.0 Principle of Preparation

6.1 Demonstrate commitment to the efficiency and effectiveness of benchmarking by being prepared prior to making an initial benchmarking contact.

6.2 Make the most of your benchmarking partner’s time by being fully prepared for each exchange.

6.3

Help your benchmarking partners prepare by providing them with a questionnaire and agenda prior to benchmarking visits.

7.0 Principle of Completion

7.1 Follow through with each commitment made to your benchmarking partner in a timely manner.

7.2 Complete each benchmarking study to the satisfaction of all benchmarking partners as mutually agreed.

8.0 Principle of Understanding and Action

8.1 Understand how your benchmarking partner would like to be treated.

8.2 Treat your benchmarking partner in the way that your benchmarking partner would want to be treated.

8.3 Understand how your benchmarking partner would like to have the information he or she provides handled and used, and handle and use it in that manner.

 

• Know and abide by the Benchmarking Code of Conduct.
• Have basic knowledge of benchmarking and follow a benchmarking process.
• Prior to initiating contact with potential benchmarking partners, have determined what to benchmark, identified key performance variables to study, recognized superior performing companies, and completed a rigorous self-assessment.
• Have a questionnaire and interview guide developed, and share these in advance if requested.
• Possess the authority to share and are willing to share information with benchmarking partners.
• Work through a specified host and mutually agreed upon scheduling and meeting arrangements.

• Provide meeting agenda in advance.
• Be professional, honest, courteous, and prompt.
• Introduce all attendees and explain why they are present.
• Adhere to the agenda.
• Use language that is universal, not one’s own jargon.
• Be sure that neither party is sharing proprietary information unless prior approval has been obtained by both parties, from the proper authority.
• Share information about your own process, and, if asked, consider sharing study results.
• Offer to facilitate a future reciprocal visit.
• Conclude meetings and visits on schedule.
• Thank your benchmarking partner for sharing their process.

• In Benchmarking with competitors, establish specific ground rules up-front, e.g. "We don’t want to talk about things that will give either of us a competitive advantage, but rather we want to see where we both can mutually improve or gain benefit."
• Benchmarkers should check with legal counsel if any information gathering procedure is in doubt, e.g., before contacting a direct competitor. If uncomfortable, do not proceed, or sign a security/non-disclosure agreement. Negotiate a specific non-disclosure agreement that will satisfy the attorneys from both companies.
• Do not ask competitors for sensitive data or cause the benchmarking partner to feel they must provide data to keep the process going.
• Use an ethical third party to assemble and "blind" competitive data, with inputs from legal counsel in direct competitor sharing. (Note: When cost is closely linked to price, sharing cost data can be considered to be the same as price sharing.)
• Any information obtained from a benchmarking partner should be treated as internal, privileged communications. If "confidential" or proprietary material is to be exchanged, then a specific agreement should be executed to indicate the content of the material that needs to be protected, the duration of the period of protection, the conditions for permitting access to the material, and the specific handling requirements that are necessary for that material.

123 North Post Oak Lane, 3^rd Floor

Houston, Texas 77024 – 7797

800-776-9676 or 713-685-4666

Fax: 713-681-5321