Benchmarking provides critical measuring information for the industry where insights and best demonstrated practices are researched. Managers may compare the performance of their offer, be it products, services or processes with best in class companies. The comparison process is done not only externally but also may be done internally with other teams, departments or business units.
The objective is to find role models of superior performance and to truly understand what processes and practices are driving this performance. The secret behind the implementation of this tool is to not only identify these success factors but to implement the best practices by tailoring them to your organization and incorporating them to your operations via innovation.
- Identify a process, service or product you wish to improve
- Identify the KPMs or Key Performance Metrics
- Choose companies, departments or business units to benchmark
- Collect data on practices, performance and results
- Analyze data to identify Best Practices and success factors
- Tailor success factors and Best Practices to your organization
- Set reasonable goals for improvement, measure KPMs and insure companywide acceptance.
What does the Benchmarking process achieve?
- Improves performance. Benchmarking identifies methods of improving operational efficiency and product design.
- Understand relative cost position. Benchmarking reveals a company’s relative cost position and identifies opportunities for improvement.
- Gain strategic advantage. Benchmarking helps companies focus on capabilities critical to building strategic advantage.
- Increase the rate of organizational learning. Benchmarking bringsnew ideas into the company and facilitates experience sharing.