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Benchmarking Can Help Significantly in Improving Business Processes and Supporting Sustainability

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22 views2 pages

Benchmarking Can Help Significantly in Improving Business Processes and Supporting Sustainability

Uploaded by

jamesbenedict.bantiling.21
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Benchmarking can help significantly in improving business processes and supporting sustainability.

It
gives the opportunity to measure performance against specific industry standards or best practices. The
organisations can check their own operations as a comparison with that of their most successful
competitors. Therefore, they will identify areas that require development. This process encourages
businesses to improve their internal operations and to adopt new practices that will lead to efficient
resource management. For instance, a company may discover that the use of some technologies or
methods from leading companies can speed up production, reduce waste, and subsequently reduce
cost.

This is also very important to the efforts of sustainability as it enables businesses to compare themselves
on environmental issues with others. This can give companies clear knowledge on how they fare against
others within the industry while working together to set achievable sustainability goals and monitor
their progress over time. This not only helps companies comply with regulations but also satisfies what
the market expects about corporate responsibility. As companies move toward sustainability,
benchmarking is a useful tool to promote accountability and sustain improvements in how they act
environmentally.

Benchmarking has various benefits which are why it is a good strategy for businesses that want to
improve how they perform. The key benefit is that of improvement of efficiency and effectiveness in the
best manner. This can be achieved by learning from others' success to make performance better through
successful strategies. Benchmarking also fosters an open culture of continuous improvement within the
organization because employees feel they own work towards excellence when measured by industry
leaders. But there are also disadvantages that organizations should take account of in benchmarking. It
uses many resources, an array that takes much time and effort just to collect or gather and analyze data.
Unless companies use wrong or outmoded data for comparisons, they may make bad decisions that hold
the companies down. Overemphasizing competitor practices could therefore stifle innovation;
businesses end up focused too much on imitations rather than having to develop their own strategies
tailored precisely to their market needs. Innovation-cum-gainful insights from such benchmarking
practice hold the key to long-term success.
The benchmarking of farebox recovery for motorbuses shows that Knoxville, while once a top performer,
experienced a significant decline in 2006, bringing its recovery rates closer to the median of its peer
group by 2007. This drop suggests potential issues in fare policy, ridership, or external economic factors
that need to be addressed. Although Knoxville's farebox recovery is not the lowest among its peers, the
decline could become a concern if left unchecked, especially in maintaining operational sustainability
through fare revenues.

In terms of directly generated funds recovery, Knoxville demonstrates a strong performance, significantly
outperforming its peers by consistently securing a higher percentage of revenues from local sources such
as taxes, subsidies, or other direct contributions. This reliance on locally generated funds, rather than
solely on fares, provides Knoxville with financial stability, reducing its vulnerability to fluctuations in
ridership or farebox revenue. In contrast, its peers seem more dependent on dedicated funding sources
and exhibit lower performance in this area, highlighting Knoxville’s diversified revenue model as a
strength.

Knoxville should address the decline in farebox recovery by analyzing the causes and exploring strategies
to improve fare collection or increase ridership, such as through optimized fare structures or enhanced
service quality. Simultaneously, it should continue leveraging its strong local funding sources to maintain
financial stability. For peer agencies, Knoxville’s ability to secure a large portion of its revenue through
local sources serves as a valuable benchmark, encouraging them to diversify their revenue streams
beyond fares and dedicated funds to reduce financial risks and ensure long-term sustainability.

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