BENCHMARKING

INTRODUCTION
 Robert .c. camp first coined the term
benchmarking in 1980.
 Acc’ to camp , benchmarking is finding
and implementing best practices in the
business.
What is Benchmarking ?
 Is a process of comparing and measuring
one’s own business processes with those
of business leaders anywhere in the world
with a view to gaining information and
understanding of their methods and
process , and then adopting it in the own
org’n for improving performance to a
higher level
Purpose
 Is to enable the organization to take a
quantum jump in improvements, resulting
in increased performance.
 The key to the success of benchmarking
process is in understanding of what ,why,
how & when of the success story.
 It is not a data gathering exercising , it is a
method of identifying new ideas and new
ways of looking at things for improvements
and excellence.
 Good benchmarking exercise produce –two
types of information:
 Quantitative data that are used to measure
current performance and set future target.
 Qualitative information on the design and
adoption of key success factors that
explains how the benchmarked company
became the leader in that function.
 Benchmarking process
 Key factors for successful benchmarking are
believing that there is a need for change and
improvement from the present level.
 To translate these into actions
-gap analysis b/w own and other superior
practices
- understanding the prevalent best-practices
in industries to identify what must be
changed or improved.
-identifying ‘benchmarking partner’ and
study of their best practices methodology.
 Implementing benchmarked practices at
one’s own unit ,to achieve the set goals.
 Review of results or outcomes to
determine ‘where you are’ after the
change.
Benchmarking Process

adopt plan

analyze search

observe
 Plan: critical success factors ,form teams,
document process.
 Search: find benchmarking partners.
 Observe: understand and document the
partner’s process ,performance and
practice.
 Analyze: identify gaps in performance and
find the root causes for gaps
 Adopt: choose ‘Best Practice’
Benefits of benchmarking
 System of working through facts and
figures achievement of competitive
advantage.
 Creation of an environment conducive to
growth, where all employees are involved.
 Acceleration of the rate of change and
improvement
What to benchmark?
 Services
 Work process
 Support functions : financial practices ,
HRM
 Customer satisfaction
 Pitfalls of benchmarking
 Lack of understanding of one’s own process,
improper data collection/comparison of
partner’s data.
 Not having a clear view of what the orgn’ sd
be after the implementation of change.
 Failure to perceive benchmarking as an
ongoing process of improvements , and not a
one-time effort.
 Mngt resistance to change.
 Conclusion
 To be effective ,benchmarking works best in
envt in which teamwork & mngt support for
improvement drives the processes.
 It is not only a part of TQM drive, but it is an
essential step for reaching a higher level of
corporate competency.
however ,none of these radical
improvement tools is a quick fix ; the orgn has
to prepare and condition itself for successfully
adopting these tools