BENCH MARKING

BENCH MARKING
Principle:
Systematic Search for best practices, innovative ideas and highly
effective operating procedures.
Systematic method to measure themselves against the best
industry practices
The process of learning, adapting, and measuring outstanding
practices and processes from any organization to improve
performance

Setting the Bar Higher and

Getting Everyone to Get Over It!

BENCH MARKING
Organizations learn how the best
companies do things
Understands how these practices differ
from their own
Implement changes to close gaps

BENCH MARKING CONCEPT

What is our
performance level
How do we do it?

What are others

performance level?

Creative
Adaptations
Break Through
Performance

BENCH MARKING PROCESS

1.
2.
3.
4.
5.
6.

DECIDE WHAT TO BENCHMARK

UNDERSTAND CURRENT PERFORMANCE
PLAN
STUDY OTHERS
LEARN FROM DATA
USE THE FINDINGS

Identify Benchmark Subject

Planning

Identify Benchmark Partner

Determine data collection method

Collection Data

Determine Competitive Gap

Analysis
Project future performance

Establish Functional Goals

Develop action plans

Action

Implement Plans and Monitor results

Recalibrate Benchmarks

ty

Integration

Attaining
Leadersh
ip
position
in the
Ma
process
turi

Communicate Results

Types of Benchmarking
Comparison: (Partner Selection)

Internal Best in Firm

Competitive Best in Industry
Functional
Generic

Form:
Performance Benchmarking
Process Benchmarking
Strategic Benchmarking

Selecting Benchmarking
Partners

Benchmarki
Benchmarki
ng Type
ng Type

Internal
Internal

Potential Benchmarking
Partners
Comparable sites, branches, sections,
departments within the business

Competit
Competit
or
or

Within the same industry sector

Function
Function
al
al

Same function across all

industry fields

Generic
Generic

All industry fields

Performance Benchmarking
Performance benchmarking enables managers to
assess their competitive positions through product and
service comparisons.
Performance benchmarking usually focuses on
elements of costs, technical quality, product or service
features, speed, reliability, and other performance
characteristics.
Reverse engineering, direct product or service
comparisons, and analysis of operating statistics are the
primary techniques applied during performance
benchmarking.

Process Benchmarking
Process benchmarking focuses on discrete work
processes and operating systems, such as the customer
complaint process, the order-and-fulfillment process, or
the strategic planning process.
Process benchmarking seeks to identify the most
effective operating practices from many companies that
perform similar work functions.
Its power lies in its ability to produce bottom-line results.
If an organization improves a core process, for instance, it
can then quickly deliver process improvement

Benchmarking at a Process or
Project Level

Strategic Benchmarking
Strategic benchmarking examines how
companies compete and is seldom industryfocused.
It moves across industries seeking to identify
the winning strategies that have enable highperforming companies to be successful in their
marketplaces.
Strategic benchmarking influences the
longer-term competitive patterns of a company.
Consequently, the benefits may accrue slowly.

AT&T Benchmarking Process

APPROACHES TO BENCHMARKING
AT & TS 12- STEP PROCESS
1. Determine who the clients are who will use the
information to improve their processes
2. Advance the clients from the literacy stage to the
champion stage
3. Test the environment Make sure the clients can and
will follow through with benchmarking findings
4. Determine urgency. Panic or disinterest indicate little
chance for success
5. Determine scope and type of benchmarking needed.

AT & TS 12- STEP PROCESS

6. Select and prepare the team
7. Overlay the benchmarking process onto the
business planning process
8. Develop the benchmarking plan
9. Analyze the data
10. Integrate the recommended actions
11. Take action
12. Continue Improvement

The Benefits of Benchmarking

Benefits include:
Betterperformanceinmeetingcustomerneeds&
requirements.
Establishingeffectivebusinessgoalsandobjectives.
Measuringtrueproductivity.
Becomingcompetitive
Identifying&implementingbestpracticeinbusiness
processes

LIMITATIONS
1. Idea of copying others
2. It is not a Strategy
3. It is not a business philosophy
Its is only a improvement tool
4. It is not a substitute for innovation