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Benchmarking is about companies and
organisations comparing their practices and
performance in key activities. It involves answering
two questions - who is better, and why are they
better? - with the aim of using this information to
make changes that will lead to real improvements
in practices.
Benchmarking is enormously flexible and has a
wide range of applications for the construction
industry. It is a vital part of the programme of
continuous improvement in which all companies
wanting to increase efficiency and competitive
edge should be involved. In those companies
where it has been adopted, it has become an
everyday activity, part of the normal routine of
effective management.
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This fact sheet provides managers in any
construction company or organisation with a basic
introduction to the technique of benchmarking,
explains what it can do for their business, what is
entailed, and who should be involved. It also
provides details on where to obtain further
practical guidance, and a summary of the existing
schemes and initiatives which can assist
construction companies wanting to undertake
benchmarking activities.
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Companies worldwide have found that there are
significant gains to be made from benchmarking
their activities, and that the amount of time and
effort involved is repaid many times over.
Benefits include:
„ Better understanding of their customer needs
and their competitors activities
„ Fewer complaints and more satisfied
customers
„ Reduction in waste, quality problems and
reworking
„ Faster awareness of important innovations
and how they can be applied profitably
„ A stronger reputation within their markets
„ and, as a result of these, increased profits and
turnover.
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Benchmarking also acts as a catalyst for change.
Measuring and studying the way a company works
often reveals and quantifies unknown
weaknesses.
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The approach taken to benchmarking may differ
depending on the size of the company concerned.
Large companies tend to want to gather greater
quantities of information and are usually more
concerned about issues of competition. Small
companies tend to focus on a few critical areas
and are more concerned with operational
improvements.
In practice, the main requirements for success are:
„ A strong commitment from top management to
act on any major opportunities for
improvement as they are revealed
„ A small amount of training and guidance for
employees who will have to gather the
information needed to identify and analyse
best practice
„ Authorisation for employees to spend some of
their time on benchmarking activities.
Of these, the most critical is top management
commitment. To prevent benchmarking becoming
an academic snapshot' of how you are
performing, senior management needs to own the
process and be seen to be steering it.
Without visible support from the top people many
may resent and oppose being exposed to
measurement. Management support will ensure
that there will be action for improving performance
in places where performance has previously not
been considered a problem.
If you treat the process as a challenge, rather than
an indictment, you will find that most people
respond enthusiastically. The impossible rapidly
becomes the achievable; and the achievable
gradually becomes the norm.
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The benchmarking process can be broken down into
a number of elements:
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You can benchmark almost any activity that can be
measured. In practice the focus should be on those
which are key to the success of your business.
Typically these will be activities which improve
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correct invoices, on time delivery/completion, speed
of service/defect resolution) or improving ERWWRPOLQH
(eg. wastes and rejects, stock levels, work in
process, sales or turnover per employee).
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In practice there are a number of different types of
organisation you can benchmark against:
3DUWV RI \RXU RZQ FRPSDQ\ - This can be an easily
accessible source of data that can help ensure that
you care comparing similar operations. Large
companies can often compare practices between
different regions or branches. Smaller companies
might simply compare practices amongst staff
undertaking similar tasks.
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extremely useful, particularly between companies of
a similar size and nature. In some cases data can be
difficult to obtain, but companies who operate locally
or regionally should be able to identify organisations
in other areas who will not perceive benchmarking as
a threat to their business.
&RPSDQLHV LQ RWKHU LQ GXVWU\ VHFWRUV - Many of the best
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ideas for radical improvements come from
companies in different industries which have to face
similar types of problems. These are often found to
employ different approaches and information is also
usually easier to collect since the benchmarking
activity is not perceived as a direct threat.
RXWVLLGH WKH 8. - Obtaining data from foreign
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companies is often easier than collecting it from
direct competitors. Foreign practices are also more
likely to yield radical ideas for improvement.
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The following provides a range of suggestions, which
can be pursued:
'HVN UHVHDUFK  gathering data from publications,
reports, specialist databases and resource centres
(eg. Institute of Marketing's Information Centre)
([LVWLQJ FRQWDFWV - customers, suppliers and other
professional contacts may be willing to participate in
a benchmarking exercise.
DVVRFLDWWLRQV - can provide a useful forum for the
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exchange of information and data.
$ EHQFKPDUNLQJ SDUWQHU - i.e. a comparator company,
who perceives a mutual benefit in the exercise
%HQFKPDUNLQJ FOXEV - which provide a formal forum for
the exchange of such information
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Once you have identified that other companies have
a higher level of performance in a particular activity
you should:
- quantify it as closely as possible
- make sure you are comparing like with like
- get other managers' opinions on the lessons you
can learn from the other companies experience and
how much is applicable to your own circumstances.
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The whole point of benchmarking is to stimulate
constant improvement in key activities. This can be
achieved by:
- setting new standards for the performance
expected, communicating and explaining these to all
involved, and motivating people to achieve them
- making someone in authority responsible for
devising an action plan to reach new standards
- providing the resources for employees to carry out
additional research
- monitor progress so that the plan really does get put
into effect.

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Granite Rock, a $90 million Californian based company which produces and sells crushed stone successfully
used benchmarking techniques to stay ahead of its competitors and staff still make regular benchmarking
trips to other companies.

Manager Rita Alves went with a group to a Tennessee aggregate-and-concrete producer. Quarry Foreman
Bill Larkin visited a gold mine: “We looked at materials handling, equipment specification, mining plans, and
little details such as how they run their shifts, how many people are on them, how many mechanics they
have got, etc.” Manager Wes Clarke got together with another business known for its interest in on-time
delivery: “We exchanged statistics with Domino’s Pizza. We learned from them places to get better maps.
Then we hired some college students to pencil street numbers on the maps. Domino’s does that.”

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A number of services are available to companies to
■ 3,/27
help them identify areas for business improvement. This benchmarking initiative, led by the Northern
Development Company provides companies in the
north east with a quick, simple and low cost
■ 7KH8.%HQFKPDUNLQJ,QGH[
introduction to benchmarking. Contact: David Yarrow
Developed by the Department of Trade and Industry,
on Tel. 0191 227 4976, Fax. 0191 227 3303.
this is a national service for small and medium sized
companies. The Index is centred on a sophisticated
database. It allows one company to measure its
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performance against others - in over 60 aspects of Developed by IBM and the London Business School,
finance, operations and management. Contact your this diagnostic tool is designed for use by business
local Business Link or Local Training and Enterprise advisers working with smaller manufacturing
Council. The Business Link Signpost Line is 01345 companies. Contact: West London TEC on Tel. 0181
567765. 577 1010, Fax. 0181 570 9969.
_________________________________________
■ 7KH352%(,QLWLDWLYH %(1&+0$5.,1*&216758&7,21
PROBE (Promoting Business Excellence) is a CBI
National Manufacturing Council initiative comprising
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A number of services are available which can help
a database of 800+ manufacturing sites in Europe.
organisations benchmark construction projects.
Using a facilitated self-assessment process it
addresses key areas of manufacturing and
engineering practice, compares with other ■ 7KH(&,&,,%HQFKPDUNLQJ,QLWLDWLYH
companies, identifies strengths and weaknesses and The Construction Industry Institute in the USA has
intelligently signposts the areas for improvement. developed a database of around 400 construction
Contact: Kay Ashmore, Tel: 0171 379 7400, Fax: projects. The European Construction Institute is
0171 836 1972, E-mail kay.ashmore@cbi.org.uk working with the CII to add a further 100 projects.
The initiative aims to benchmark participants against
■ %HVW)DFWRU\$ZDUGVEHQFKPDUNLQJVHUYLFH a series of best practices (team building, zero
accidents, constructability, pre-project planning,
The Best Factory Awards database contains detailed
project change management, scope definition and
data for over 1000 UK manufacturing plants. Data is
control, strategic alliance, design
collected and analysed as part of the entry
information/technology). Contact: ECI on Tel. 01509
submission for the Management Today Best Factory
222 620, Fax. 01509 260 118.
Awards, and a report is produced showing the plant's
position in relation to other plants in its comparator
set. Contact: Marek Szwejczewski, Cranfield School
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of Management, Tel. 01234 751 122. Developed by the Building Research Establishment,
this is a management tool for collecting and
analysing data relating to site productivity. Data is
■ $66(66 analysed in real time on a daily basis, and also at
ASSESS is a family of three software products (also
periodic review points. Contact: Vassos
available paper-based). RapidScore is a quick self-
Chrysostomou on Tel: 01923 664257, Fax: 01923
assessment that profiles an organisation's
664398, E-mail: chrysostomou@bre.co.uk.
perceptions of its strengths and areas for
improvement. TeamScore offers a more rigorous
assessment against others’ performance. ValidScore
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offers validation by experienced BQF assessors. GDG Management has developed a benchmarking
Contact: The British Quality Foundation, Tel. 0171 system based on activity sampling and time and
963 8014, Fax. 0171 963 8001, E-mail. assess@bqf- motion studies, the focus being on labour, plant and
materials. This is currently being piloted on a number
uk.demon.co.uk
of large construction projects. Contact Graham
Clarkson on Tel. 018144 279 800.
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The SMMT Industry Forum and Bywater plc ■ +XPDQ6\VWHPV
partnership have developed this self assessment and
Human Systems Ltd. run a network of companies for
diagnostic package. It consists of a questionnaire,
whom project management is a critical activity.
guidance notes, score card and floppy disk based
Through benchmarking, their aim is to identify those
soft-ware and normally involves a team of 6-8 people
practices that lead to breakthrough performance on
from different areas of the organisation and takes
projects. Contact Terry Cooke-Davies on Tel. 01303
around half a day to complete. Contact: Carolyn
226071, Fax. 01303 226072.
Smith, SMMT Ltd. Tel. 0171 235 7000 (ext. 254) or
Michael Carton, Bywater plc, Tel. 0118 988 6336.

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■ Don’t try to benchmark too many things to begin with. Select the two or three highest priorities, then
gradually add others as these become routine.

■ Don’t waste time benchmarking things that are just ‘nice to know’. Every benchmark should be aimed at
improving performance in an area that contributes to profits or customer satisfaction.

■ Be precise in defining what you want to measure. This will ensure that the information collected will be
more useful.

■ Test the benchmarks you intend to use internally before consulting other companies. If you are measuring
the wrong thing or are unable to collect the data, you could waste time going outside.

■ Remember that the most important issue for your organisation may change with time and your
benchmarks should change to reflect this.

)25025('(7$,/('*8,'$1&(  achieve superior performance. The Centre provides

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The Construction Sponsorship Directorate, The
Department of the Environment, Transport and the
Regions. Tel: 0171 890 5651, Fax: 0171 890 5529.
This information pack includes a step by step guide -
Benchmarking the challenge - A practical guide to
business improvement which explains how to design
and implement a benchmarking programme in your
company. The information pack also includes
examples and results from benchmarking clubs set
up in different sectors of the construction industry.
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Construction Research Communications Ltd. Tel:
0171 505 6622, Fax: 0171 505 6606.
This guide sets out a benchmarking methodology for
use in the construction industry and outlines how a
number of case studies on which it has been used.
)25025(+(/3 $'9,&( Construction Industry Board
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This Forum is coordinated by the Building Research
Establishment and provides a relatively informal
grouping of construction organisations and research
bodies who are developing benchmarking techniques
or carrying out benchmarking themselves. The
Forum meets quarterly to exchange ideas and report
on progress. For more details contact Heather
Cuckow on Tel: 013552 33001, Fax: 013552 41895.
7KH %HQFKPDUNLQJ &HQWUH
The Benchmarking Centre is an international
organisation committed to promoting the introduction
and practice of ethical and effective benchmarking to
companies of all types and sizes with an opportunity
to share experiences and learn from leading
organisations worldwide.
For more details contact The Benchmarking Centre,
Truscon House, 11 Station Road, Gerrards Cross,
Bucks, SL9 8ES. Tel: 01753 890070, Fax: 01753
893070.
_______________________________________________
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The Construction Industry Board is a partnership of
the construction industry, its clients, and government
working to improve effectiveness and efficiency in
construction. The Board aims to secure a culture of
co-operation, teamwork and continuous improvement
in the industry's performance, and its principal
objective is to implement the recommendations of Sir
Michael Latham's 1994 report, Constructing the
Team.
For further information on the work of CIB visit our
web site: Web site: http://www.ciboard.org.uk
Or contact us at:
26 Store Street
London
WC1E 7BT
Tel: 0171-636 2256
Fax: 0171-637 2258
E-mail: cib@ciboard.org.uk
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CIB Fact Sheets on the following subjects are also
available:
„ Productivity and cost improvement
„ Partnering
„ Value management
„ Standardisation and preassembly
__________________________________________

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