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Bench Marking

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Analía Scozzari
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3 views

Bench Marking

Uploaded by

Analía Scozzari
Copyright
© © All Rights Reserved
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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BENCHMARKING

BENCHMARKING
 Does the word “benchmarking” sounds
familiar to you? What is it?

 What does your company do to improve sales


and productivity?

 Do you wonder what techniques your


competitors use that lead to their success?
BENCHMARKING
Simply, the idea behind benchmarking is to measure
internal processes against an external standard –
comparing your company to another company similar to
yours that’s very successful. It is a way of learning which
companies are best at performing certain activities and
functions and then imitating—or better still, improving on
their techniques.

Most business processes are common throughout


industries. For example; NASA has the same basic
Human Resources requirements for hiring and
developing employees as does American Express. British
Telecom has the same Customer Satisfaction Survey
BENCHMARKING
Any business process can be benchmarked. It’s a good
idea to sometimes reach outside of your own type of
industry into other industries that perform a similar
process, because they may have to perform this process
extremely well in order to succeed.

Among many possibilities, your company can look at how


materials are purchased, suppliers are paid, inventories
are managed, employees are trained, or payrolls are
processed.
Types of
BENCHMARKING
1. Competitive Benchmarking

Competitive benchmarking means comparing one


organization against peer organizations (or
sometimes competitors) in specific measurable
areas.

In competitive benchmarking a company must define


a set of measures they would like to analyze, identify
a set of peers they would like to compare themselves
against, acquire the data, and perform comparisons.
BENCHMARKING
2. Best Practices Benchmarking
In this approach, a company is trying to understand the
best practices in one particular area. These best
practices may be processes, workflows, systems, tools,
and methodologies used by other organizations.

In best-practices benchmarking, a company looks at


case studies of companies with similar problems to
theirs and talks with these organizations to understand
what works to solve the problem.
VOCABULARY Stop
 Define - to state or describe something
exactly

 Comparison - the act or process of


examining two or more people or things in
order to discover similarities and
differences between them

 Methodology - the methods or organizing


principles underlying a particular art,
science, or other area of study
How Do You
BENCHMARK?
Research is Key. The key to both competitive and
best-practice benchmarking is to gain access to
unbiased, relevant research. Your company can obtain
this research through:
 In-depth case studies and examples of how
companies have solved problems similar to yours. You
can identify such information by going to trade shows,
listening to industry webcasts, and talking with
members of the problem solving team. Interview them
by phone and take the time to dig into specific
examples of how they solved problems similar to yours.
How Do You
BENCHMARK?
Talking with your peers. Take the time to sit down
with a peer in your industry and compare notes. A face-
to-face meeting or a one-hour telephone call will often
teach you a lot. If you are purchasing a product, call
vendor references and ask them precisely how they used
the product to its greatest advantage.

Select the best-in-class companies -- those


companies that perform each function at the lowest cost,
with the highest degree of customer satisfaction, etc.
These can even be companies from a completely
different industry.
BENCHMARKING
Measure the performance of the best-in-class
companies for each benchmark being considered --
from sources such as articles, analysts in the market,
credit reports, clients and vendors, trade associations,
the government or from interviews with other
organizations willing to share their prior research or
"swap" it with you.

Measure your own performance for each variable


and begin comparing the results in an "apples-to-
apples" format to determine the gap between your
firm and the best-in-class examples.
BENCHMARKING
Specify those programs and actions needed to
meet and surpass the competition. The firm can choose
from a few different approaches -- from simply trying
harder, to emulating the best-in-class, changing the
rules of the industry or leapfrogging the competition
with innovation or technology from outside the
industry.

Implement these programs by setting specific


improvement targets and deadlines, and by developing
a monitoring process to review and update the analysis
over time.
VOCABULARY Stop
 Unbiased - fair and impartial without preference
 Webcast - a broadcast made on the World Wide
Web
 Variable – something that may be different in
different situations
 Leapfrog - to advance quickly in status or position,
usually bypassing competitors or colleagues
Let’s TALK..
Do you think benchmarking can benefit your
company? Why or why not?

What companies do you view as your competitors


and would you want to research their techniques?

Tell the class about a problem your company faced


and how it was solved.

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