Benchmarking

Benchmarking

Learning from Others’Success

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Some Questions

What markets offer attractive profit potential? How will your industry evolve over time? What are the key success factors in your market(s)? What segments exist, what strategy is required? What are your competitors’ strategies, strengths & weaknesses? How do your competitors’capabilities map against a market key success factors?

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Benchmarking is a Continuous Ongoing Long-term Systematic Structured Formal Analytical Organised that are Process for Evaluating Understanding Assessing Measuring Comparing Best-in-class as World-class Representing best practices

the

Organisations Companies Institutions

Recognised Acknowledged Identified

for the purpose of

Organisational comparison Organisational improvement Meeting or surpassing industry best practices Developing product/process objectives Establishing priorities, targets, goals

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General Principles for Involvement

• The more people involved, the more different views and perspectives brought to bear • The more ideas generated, the better the chance of making significant changes • The more people in the benchmarking process, the less difficult it is to sell the concept and any results to the workforce.

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Types of Benchmarking

• Internal benchmarking • Competitive benchmarking • Industry or Functional benchmarking • Process or Generic benchmarking

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Internal Benchmarking

• Similar activities in different locations, departments etc • Advantages:

– – – – “Sharing” - Communication Data easy to get Good results, immediate benefit Good practice

• Disadvantages:

– Limited focus – Internal bias – “Miss the boat”

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Competitive Benchmarking

• Direct Competitors, same customer base • Advantages:

– Directly relevant – Comparable practices & technologies – History of information

• Disadvantages

– Data collection difficulties – Ethical issues – Antagonism

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Industry or Functional Benchmarking

• Leaders...