What is Benchmarking?

Benchmarking is the continuous process of identifying, understanding and adapting best practices and processes that will lead to superior performance. Moreover, it measures an organization’s operations, products, and services against those of its competitors. Above all, it is a means by which targets, priorities, and operations will lead to establishing a competitive advantage.

Internal drivers

It includes,

• Firstly, targets which require improvements to our ‘best ever’ performance.
• Then, technology. It is a fundamental change in processes to benefit fully from Introducing new technologies
• Lastly, self-assessment results. It provides opportunities to learn from adopting best practices.

Benefits of Benchmarking

The benefits include,

• Firstly, creating a better understanding of the current position.
• Secondly, heightening sensitivity to changing customer needs.
• After that, encouraging innovation.
• Establishing realistic action plans.

Categories of benchmarking

There are four main categories,

• Internal

  In this, there is a search for the best practice of internal operations by comparison.

• Functional

  It means seeking functional best practices outside an industry.

• Generic

  There is a comparison of outstanding processes irrespective of industry or function.

• Competitive

  There is specific competitor to competitor comparisons for a product, service, or function of interest.

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