Best Practice Benchmarking – using analytics and process to drive best practice

Benchmarking is a process of comparing your organizations processes and procedures against others – this is carried out to facilitate the flow of best practice into your organization in order for it to improve efficiency and maintain its place in the marketplace.

There are a number of different types of benchmarking this includes

Internal Benchmarking – often deployed in large organizations this form of benchmarking targets areas of the company that are more efficient than others. This helps organizations maintain standards and uniformity across the organization.

Competitive Benchmarking – this form of benchmarking is used for analyzing your performance within the context of your marketplace – by analyzing yourself against your competitors actions can be taken to improve performance and mitigate the risk of non-competitiveness

While Competitive Benchmarking offers, for many, the greater incentive – i.e. keeping up with the market and mitigating competitors – it also offers the most challenges – for example – you can’t just stroll into your competitors and ask to see how they outperform you!

Given this issue – trade organizations have flourished as they offer a way for a market to share best practice in a non-threatening environment ensuring that where best practice is shared – those who are outperforming in the marketplace get a deeper understanding of their competitive advantage. However it goes without saying that competitive benchmarking remains the hardest to get right.

Another form of benchmarking is Strategic Benchmarking – this is slightly different to facilitating best practice into an organization rather it becomes an assessment of an organizations goals, technologies, and business model to identify further opportunities for change.

Whichever method is used where organizations are looking to facilitate change – benchmarking offers a proven approach. Many organizations continue to look at this aspect and use benchmarking as a cost driver – a tool to reduce overhead while many take an opposing view and utilize it to secure their position in the marketplace. Whatever the objective implementing benchmarking makes change inevitable – this shouldn’t be feared – organizations that embrace change are more likely to be those that innovate and create value for both their customer and their organization.

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