What is Benchmarking?
It is simply the comparison of one organization’s practices and performance against those of others. It seeks to identify standards, or “best practices,” to apply in measuring and improving performance.
1) Identify opportunities
2) Set realistic but aggressive goals?
3) Challenge internal paradigms on what is possible?
4) Understand methods for improved processes?
5) Uncover strengths within your organization?
6) Learn from the leaders’ experiences?
7) Better prioritize and allocate resources Performance Improvement
OUTLINE NOTE TO BENCHMARKING PROCESS
2) Selecting Targets
4)Cost / Benefit analysis
KEYS TO SUCCESSFUL BENCHMARKING
1) The Process
3) Identifying Candidate Partners
Comparing Scenarios: Between without Benchmarking & with Benchmarking
|GUIDANCE POINTS / VIEWS||WITHOUT BENCHMARKING||WITH BENCHMARKING|
|DEFINING CUSTOMER SPECIFICATION||1) Based on history/got feel||1) Based on market reality|
|2) Acting on perception||2) Acting on objective evaluation|
|ESTABLISHING EFFECTIVE GOALS||1) Lack of external focus||1) Credible, customer-focused|
|2) Reactive||2) Proactive|
|3) Lagging industry||3) Industry leadership|
|DEVELOPING TRUE MEASURE OF PRODUCTIVITY||1) Pursuing pet projects||1) Solving real problems|
|2)Strengths and weaknesses not understood||2)Performance outputs
known based on best in class
|BECOMING COMPETITIVE||1) Internally focused||1)understand the competition|
|2) Evolutionary change||2)Revolutionary ideas with
|3)Low commitment||3)High commitment|
|INDUSTRY PRACTICES||1) Not invented here||1)Proactive search for change|
|2)Few solutions||2)Many options|
Competitive benchmarking is a special area of competition monitoring and assessment .it implies a measuring process through which the strategy and operative measures of our own company are compared with those of the best companies both within and beyond strategic groups or even with those of a company in different ways.
FOUR MAIN STEPS AS A TOOL IN MARKETING STRATEGY FOR ORGANIZATIONAL DEVELOPMENT
STEP ONE: To identify the company to be examined.
STEP TWO: To determine the factors to be examined.
STEP THREE: To collect relevant data needed for analysis.
STEP FOUR: To make COMPARISON
Through benchmarking we can make comparison i.e compare our own processes with those of the best company so that measures that need to be taken become apparent.