What is benchmarking ?
Benchmarking is the systematic process of comparing business processes and performance metrics to industry best practices in terms of quality, time, and cost dimensions, and making such comparisons the bas to do things better, faster and cheaper.
Why should you choose to run a benchmarking project ?
* 75% of American organizations or companies conduct a benchmarking project every year : this is a proof that it is essential in a strategy building * It helps make long-term improvement and places in a continuous improvement mode * It is a source of external comparisons and benchmarks
* It enables outperforming competitors
* It opens minds to new ideas
* It sets the foundation of performance improvement aimed at enhancing competitiveness. By showing how to do better than competitors, benchmarking will ensure the basic sutvavil of your business * It identifies best practices in key business processes and determines what constitutes superior performance * It quantifies the gap between the expected performance process and the actual state * It provides specific and measurable short-term improvement plans based on current reality rather than historical performance. It can indeed be dangerous to set goals only based on past trends. You may stay aware of the competitors’ performances and practices. * It help place organizational focus on change and provides change by making explicit the competitors’ standards, providing new ideas and better ways of doing things
What are the limits, criticisms we can make about benchmarking ?
* While benchmarking helps in measuring the efficiency of our operational metrics, it remains inadequate to measure the overall effectiveness of such metrics * Benchmarking reveals the standards attained by competitors but does not consider the circumstances that enabled the competitors to reach those standards. * One danger of...