Professional Documents
Culture Documents
Amarjeet Gorai
Neha Albina Ekka
Definition
“measuring our performance against that of best-in- class companies,
determining how the best-in-class achieve those performance levels
and using the information as a basis for our own company’s targets,
strategies and implementation .”
Best Practice
Overlap
Competitive
• Industry leaders
• Top performers with
similar operating
characteristics
Functional Internal
• Top performers • Top performers
regardless of industry within company
• Aggressive innovators • Top facilities
utilizing new within company
technology
Strategic benchmarking:
Examines how companies compute and seeks the winning strategies that have
led to competitive advantage and market success.
Exchange Information.
Legal Concerns.
Confidentiality.
Analysis: Determine the gap between the firm’s current performance and that of
the firm’s benchmarked and identify the causes of significant gaps.
Integration: Establish goals and obtain the support of managers who must
provide the resources for accomplishing the goals
Action: Develop action plans, and team assignment, implement the plans,
monitor progress and recalibrate benchmark as improvements are made.
Through Benchmark process organization can borrow ideas, adopt and refine them to gain
competitive advantages.
Now a days, more than 60% companies in the world uses this
technique for fixing their target for continuous improvement. For
them it is an important tool. But to be effective it must be used
properly. It breaks down (waste money, time and energy and some
times morale too) if process owners and managers feel threatened or
do not accept and act on the findings. Finally, benchmarking is not a
substitute for innovation; however, it is a source of ideas from
outside the organization.