Benchmarking strategy

The process of Benchmarking refers to identifying processes, procedures and systems assessing your performance among a peer group, identifying best practice and then incorporating it into your organization.

Benchmarking can be used when undertaking strategic planning as it directly relates to the execution of strategy through processes, systems and policies. Benchmarking can help in the assessment of organizational goals and whether they can be met.

Perhaps crucially through selecting the appropriate peer group benchmarking can directly feed back into organizational planning as key activities and initiatives within the marketplace can be incorporated into goals and targets. This is especially true when the peer group is a trade association or trade group. The challenge here is visibility of performance and methods – and while “Best practice” can be subjective capturing it statistically in a competitive market environment can be difficult.

The actual process for benchmarking isn’t overtly complicated in that it requires a series of steps to be completed and some upfront decision making in what will be assessed.

The key steps are:

1/ Being clear in what you’re benchmarking – backed up with data and metrics
3/ You select the right peer group to benchmark from – you are able to back up best practice with data and choose the right partner(s) to benchmark with
4/ You follow up your benchmarking with an improvement activity to bridge the gap between current status and best practice
5/ You regularly undertake benchmarking to ensure that you keep abreast with your peers.

The key to using benchmarking for strategy is appropriate ties between the benchmarking team and strategic planning – used correctly benchmarking can support strategy assumptions and drive decision making to target improvements and initiatives that will support strategic goals.

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Related posts:

  1. Drawbacks of Benchmarking with other organizations
  2. Benchmarking Healthcare
  3. Benchmarking Procurement
  4. Introduction to Benchmarking
  5. Benchmarking – searching for enablers in other organizations that boost performance