Strategic Management

Agenda

Benchmarking

Agenda

Benchmarking

Benchmarking
Benchmarking is the process of measuring an organization's internal processes then identifying, understanding, and adapting best practices from other organizations considered to be best-in-class. Benchmarking provides necessary insights to help understand how an organization compares with similar organizations, even if they are in a different business or have a different group of customers.

Additionally, benchmarking can help in identifying identify areas, systems, or processes for improvementseither incremental (continuous) improvements or dramatic (business process reengineering) improvements.

Benchmarking
Benchmarking has been classified into two distinct categories:

Technical benchmarking Performed by design staff to ascertain the capabilities of products or services, especially in comparison to the products or services of leading competitors. For example, How do designers rank the properties of your organizations products or services?
Competitive benchmarking Compares how well (or poorly) an organization is doing with respect to the leading competition. For example, How do customers rank your organizations products or services compared to those of the leading competition?

Benchmarking
Steps
Plan
Benchmarking team Internal Process knowledge Benchmarking partners

Collect

Collect data on partner's processes Create database

Compare processes and find gaps Analyze Develop process to fill the gaps

Adapt

Implement Plan and Processes Monitor progress

Benchmarking
Conclusion
There are many reasons that a company may decide to benchmark, overall there is one objective performance improvement.

Thank you