Benchmarking

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  • Topic: Benchmarking, Benchmark
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  • Published : May 26, 2013
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Answer for benchmarking tips
5. Benchmarking general question (soalan umum benchmarking lihat soalan sem lalu) - Reason for benchmarking
- Benefit of benchmarking
- Soalan sem lalu (although benchmarking is a popular management technique many firms are not engaged in the benchmarking process. Why? Why do you think that some firms avoid benchmarking? Are any of the reasons valid? Why or why not?) Answer

The reason why some organization didn’t in engaged benchmarking process is because * Customer has different need and want.
* Businessman has their own thought when approaching or creating business. * Because organization is in “safe zone”. Don’t fix something that is not broken * 1) A meaningful benchmark study requires an apples-to-apples comparison. But not all companies are organized the same way. Many have departments with proprietary names and complex functions comprised of employees with unconventional titles and roles with varying degrees of responsibility. The processes and infrastructure being managed often have a similar degree of variability and complexity.

* 2) This variability requires a common framework be applied to normalize the results – to make everything look like an apple. The framework is typically provided by the consultancy and if your company does not buy into the validity of the framework, the study begins to loose credibility.

* 3) The process of mapping a company to the benchmark framework is an incredibly tedious and subjective piece of work. If you don’t get the mapping right, the study loses more credibility. People begin to question the motives behind commissioning the study.

* 4) Collecting data can in many cases be subjective. If you’re simply pulling data off of servers then it’s a walk in the park. But in many cases the study requires that humans enter information into databases provided by the consultancy. How many people in your department provide function x? Hmmm….if allocates too many people...
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