Introduction to Benchmarking

Almost all businesses are engaged in some form of business improvement activity – ensuring that your business can stay one step ahead of the competition through optimized business processes, systems and policies is integral to both maximizing your profits and satisfying your customers.

But how do you ensure that your business operates to the “best practice” standard?
Benchmarking is a business tool that is used to adapt “best practice” from peers (which may be within or outside the organization) and facilitate improvement in business performance and increase the value add to its customers.

The process of Benchmarking centres on the process of comparing business activities and methods to those that are considered “best in class”. Identifying the gap between current activity in your organization and “best in class” can help facilitate the production of an improvement plan that can lead the benchmarking company to optimize it’s processes and procedures.

Benchmarking is now commonplace and is an everyday activity in many organizations. One of its key benefits is that it forces organizations to review the outside environment and take account of the market and changes that are taking place. To that end, Benchmarking should be viewed as an ongoing process that takes place throughout the business lifecycle and be central to an organizations continuous improvement program.

The benchmarking process itself is fairly straightforward.

1/ Identify your processes
2/ Agree what you’ll benchmark
3/ Agree who you’ll benchmark against
4/ Analyze the chosen processes in your peers
5/ Develop a gap analysis
6/ Develop an improvement plan/activity plan
7/ Review progress and re-benchmark.

Check out the benchmarking presentation for our benchmarking introduction – Benchmarking ppt (Right Click File and choose File save as).

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Related posts:

  1. Benchmarking Procurement
  2. Using Internal Benchmarking to drive business improvement and corporate change
  3. Benchmarking strategy
  4. Benchmarking Healthcare
  5. Drawbacks of Benchmarking with other organizations