Using Internal Benchmarking to drive business improvement and corporate change

For many large organizations driving business improvement and change represents a significant challenge. There are a variety of management tools available to instigate and track improvements many of which (such as six sigma) stem from initiating change through the need to fix business problems in the production process. – businesses however don’t need to leave it until something goes wrong to target improvements – though locating “best practice” processes innovation can be incorporated.

Benchmarking is a popular business tool used to highlight areas of best-practice and facilitate their introduction into your organization (for more information check out our introduction to benchmarking article). Often used in peer groups of like minded organizations to assess processes and systems – benchmarking can be very effective when used internally to.

Areas of excellence exist in all organizations and benchmarking is an excellent method of highlighting these, and holding them up as “best class” examples for improvement projects to strive towards. Internal benchmarking can then facilitate the dissemination of the efficient processes and procedures through the organization – bringing everyone to the same level.

It’s important to remember the context of internal benchmarking and you mustn’t expect the same opportunities for change as with external benchmarking, as you may miss certain innovations in the marketplace, but it can represent an excellent method of introducing benchmarking and providing one the ground training prior to launching external initiatives.

Advantages of internal benchmarking

• Common culture, language, data
• Access to data is consistent across all participants
• Shared view and buy in of benchmarking process
• Highlights areas of business that outperform on a level playing field

Disadvantages of Internal Benchmarking2

• Develops complacency
• Fails to highlight true “best practice”
• Fails to take competition in the marketplace into account.

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Related posts:

  1. Benchmarking Procurement
  2. Best Practice Benchmarking – using analytics and process to drive best practice
  3. Introduction to Benchmarking
  4. Benchmarking Healthcare
  5. Drawbacks of Benchmarking with other organizations