Overhead Benchmark
Why participate in the benchmark? Participation helps answering two questions:
1.How does your overhead compare to similar organizations? 2.How to become best in class? Invitation to participate in an overhead benchmark
This invitation is offered to you by Business Development Group Romania, in cooperation with Berenschot Group Netherlands
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Our track record
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Has anyone seen the overhead?
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Started in 2001 by Berenschot, Dr. Mark Huijben. Benchmark method further developed in cooperation with Groningen University and University of Amsterdam.
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Several publications (e.g. management book of the year nominee, dissertation Groningen University, publication in Public Money and Management medio 2013).
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Successfully applied to 1500 organizations in 30 sectors (including all 14 Dutch universities).
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Our method has received a quality certification from the Dutch Municipality Association.
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Examples of participants: Dutch government, ING, AEGON, Friesland Foods, Logica, Océ, Dutch Central Bank, Schiphol Airport and more.
Most people only bother about the costs of overhead. Few people care about its value. Let’s imagine someone, we call him Jack, who walks into his office and finds out that the overhead had suddenly disappeared. Finance, personnel, IT, management, secretaries. They are all gone, leaving only a note on the door of the elevator: “We are gone. Kind regards, the overhead.” The further information on the note is clear: they were tired of all the criticism on their size and value. Jack first reacts enthusiastic. But then the problems begin …
From the book: “Has anyone seen the overhead?” Huijben & Geurtsen. Nominated management book of the year 2009. 4
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Our definition of overhead
How does your overhead compare to similar organizations?
“All the functions that aim at steering and supporting employees in the primary process.” • Organizations want insight in their current situation, particularly in hard economical times
•Overhead common in every sector: Board, Management, Secretarial support, Personnel affairs/HR, IT, Finance & control, Communication, Legal affairs, Facility services
• A benchmark will clarify in which tasks the overhead deviates from that of similar organizations
•Sector-specific overhead:
• A benchmark leads to recommendations for optimizing your overhead and followup research
For example ‘Education & Research Support’ Universities
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Our method
Research findings • Overhead is an emotionally charged subject
• Defining the overhead
• Enormous variation in overhead:
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• Measuring the organization’s overhead in terms of FTE and costs
Too little overhead harms effectiveness
• Benchmarking the overhead: your overhead compared to similar organizations
Too much overhead harms efficiency
• Difficult to manage without comparative information
• Recommendations for optimizing your overhead and follow-up research: How to become best in class?
• The benchmark helps to get grip • Need for an unambiguous definition
• Each participant receives a personal report with the research outcomes 7
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Overview Dutch results overhead between sectors
Overview Dutch results overhead within sectors
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Example: Engineering company overhead benchmark
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Confidentiality of data
• Participants remain owner of their specific data submitted during the research. None of it will be presented, published or used for any other purpose, unless permission is granted by participant. • Benchmark data will always be bundled to guarantee anonimity of participants. This means none of the presented data and analysis can be related to a single participant.
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Who are we?
Who are we? Berenschot in brief
Business Development Group
• Found in 1938 by Mr. B.W. Berenschot •Founded in 1992 in Bucharest •Independent professional Romanian consulting company •Assisted more than 500 foreign and Romanian clients •Acting as local project manager in various private and government projects •Activities covering Romania, Bulgaria, Moldova, Serbia, Croatia, Ukraine, Georgia,United Kingdom, Italy, Israel,Czech Republic,Netherlands. 13
Ruimte voor aantekeningen Contact For questions and participation
BDGroup
Berenschot
Ciprian Nanu
Dirk-Jan Schoneveld
ciprian.nanu@bdgind.ro
dps@berenschot.nl
M:+40-744298803
Tel. 00 31 6 20 938 283
Str. Vasile Alecsandri
Europalaan 40
no 16, Bucharest
Postbus 8039, 3503 RA Utrecht
www.bdgroup.ro
www.berenschot.com
www.twitter.com/CiprianNanu
www.twitter.com/berenschot_nl
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• Independent Dutch management consulting firm • Various projects in Romania, Africa, Asia, Europe, the Caribbean • 450 employees • €59 million in revenue • Member of E-I consulting group 14