Benchmarking Process Paper
You can 't manage what you don 't measure (Reh, 2015) is an old management adage that continues to be accurate today. Benchmarking is a very powerful tool that is available to help organizations measure how well they are performing compared to their counterparts. It involves studying industry or competitive practices, functions and products and finding ways to meet or improve upon them. This process can help organization identify areas they fall short in as well as identify strategies to overcome them, which in turn will help them to become best in class. This paper will examine the Benchmarking process and the impact it can have on an organizations (Hall & Thomas, 2014).
Benchmarking was first introduced by Xerox …show more content…
A 2003 PricewaterhouseCoopers Trendsetter Barometer survey revealed that companies that benchmark achieve 69 percent faster growth and 45 percent greater productivity than those that do not (Hall & Thomas, 2014). Benchmarking Types
Internal and Strategic benchmarking are the two major types of benchmarking procedures that organizations use. Internal benchmarking involves benchmarking within a company. A comparison of the company’s performance against a previous time period (i.e., previous quarter, same quarter last year, etc.) is examined. This type of benchmarking is often the starting point for quantitative process examination. Trends can be identified by examining data over time, and the impact of performance-improving processes can be assessed (Hall & Thomas, 2014). Competitive benchmarking, examines benchmarking performance or processes with those of competitors. A comparison of a firm’s performance against similarly-sized firms in the industry. Competitive benchmarks provide the added advantage of make comparisons against competitors (Hall & Thomas, 2014).