BENCHMARKING
Benchmarking
Benchmarking is the process of comparing the performance of your business to that of other companies in the same sector. It is done to see if improving your performance can bridge a performance gap.
Significance of Benchmarking
Benchmarking can help organizations
- Determine how they can improve their performance.
- Set realistic goals for improvement
- Track their progress over time
- Gain insights from other organizations
- Stay competitive
Benchmarking methods
- Internal benchmarking : comparing an organization's performance to its historical performance
- Competitive benchmarking : comparing an organization's performance to that of its competitors.
- Best-practice benchmarking : comparing an organization's performance to that of organizations that are considered to be the best in their industry.
Steps involved in Benchmarking
- Identifying the process or area to be benchmarked.
- Determine your benchmarking partners.
- Gather information.
- Examine the data.
- Create action plans.
- Keep an eye on things.