Benchmarking is the continued search for excellence through comparative analysis followed by process improvement.

Benchmarks or metrics are the key indicators or measures used to compare and lead to best practices.  Benchmarks on their own cannot secure improvement; there must be a firm commitment to change.

Definitions

“The continuous process of measuring our products, services and practices against our toughest competition, or those renowned as leaders”
David T Kearns Chairman Xerox 1982 - 1990

Benchmarking is a technique for assisting companies to improve their process performance by “finding and implementing the best practices”
Rank Xerox

But most benchmarking studies fail to answer the “so what” test.

Types of Benchmarking

• Internal

• Competitive

• Industry

• Cross industry

Success Indicators

• Senior level sponsor

• Determine key processes relative to critical success factors and map these

• Keep it simple

• Determine 5/6 parameters

• Involve the process owner/team - cross functional disciplines

• Benchmarking is a precursor to process improvement

Risks

• A stick to beat managers?

• False comfort

• What’s captured - do you really understand the metric?

• Indicators can make poor measures

• Don’t focus unduly upon one measure - use a basket or Balanced Scorecard

Benchmarking Process