BENCHMARKING

BENCHMARKING

1. Description

   • It's an useful tool for companies to be bigger, focus on product, process and performance, comparing your company with many companies with the objective of be better than the other

2. To carry out bechmarking is necessary do a market research of all areas inside the company as well as analyze whole market; its a big investment that requires lots of money

   • technology
   • governments
   • products
   • productivity
   • cities
   • retail
   • strategy
   • services
   • market
   • operation
   • processes
   • marketing
   • financial

3. Phases

   • Maturity
     • Monitring of process, continous learning and provides input for continous improvement within the recipient organization
   • Action
     • Actions are implemented with the recipient organization
   • Integration
     • It involves the preparation of the recipient for implementation of actions
   • Analysis
     • An analysis that is performed for the performance gap between the source organization and the recipient organization as result best practice is then evident
   • Planning
     • Determines which process to benchmark and against what type of organization

4. Types of benchmarking

   • generic
     • focus on technological aspects, implementation and deployment of it, how the competitors do it?
   • Process
     • Similar processes in different organizations producing different products an example could be airline & hospital industry looking at the process of catering their clients
   • Internal
     • Is applied by multinationals, with multiple factory locations and offices within the same country
   • Competitive
     • Is performed versus competitors and data analysys is done as to what causes the superior performance of the competitor

5. Benefits

   • Identifies strengths and weaknesses to other respondents, Leads to improve outside of the industry, Helps measure current company performance

6. Pitfalls

   • Not planning ahead, not enough "high level" or "sincere", not linking benchmarking to process, failing to priotise, lack of communication