Benchmarking Presented by: Darya Balyasnikova. What is Benchmarking? Comparative method for firms...
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Transcript of Benchmarking Presented by: Darya Balyasnikova. What is Benchmarking? Comparative method for firms...
![Page 1: Benchmarking Presented by: Darya Balyasnikova. What is Benchmarking? Comparative method for firms based on best practices in the industry Reference point.](https://reader036.fdocuments.in/reader036/viewer/2022062518/56649e8f5503460f94b93a68/html5/thumbnails/1.jpg)
Benchmarking
Presented by: Darya Balyasnikova
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What is Benchmarking?
• Comparative method for firms based on best practices in the industry
• Reference point used in order to bring superior results
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Benchmarking Targets
• Prime competitors– Benefit: high level of granularity– Possible drawback: competitors not willing to share their
best practices
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Benchmarking Targets (cont.)
• The organization itself– Division to division– Spread by training– Benefits:
• Cost effective• Easy to get information
– Drawback:• May miss the bigger
picture
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Benchmarking Targets (cont.)
• Best in Industry– Finding industry leader and learning what they
do that is so much better than you– Getting close to the competitor and learning
from them– Drawback: competition for information
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Benchmarking Targets (cont.)
• World Class– Comparing against the best in the world– Drawback: very high competition for information
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Types
• Performance Benchmarking– Comparison of one’s own performance with
another organization’s performance• Involves comparing products and services with other
firms
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Types (cont.)
• Best Practice Benchmarking– Observation and investigation of business
processes• Benchmarks cost and efficiency
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Types (cont.)
• Strategic Benchmarking– Compares long-term decisions and actions
• Functional Benchmarking– Compares functions regardless of the industry
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Types (cont.)
• Financial Benchmarking– Examines overall competitiveness
• Generic Benchmarking– Comparison against best practices in any type of
organization
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Types of Benchmarking (cont.)
• Product Benchmarking– Leads to designing new products/upgrades to
existent products– May involve reverse engineering
• Xerox Corporation
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The Benchmarking Process: Planning
• Identify what is to be benchmarked
• Identify comparative companies
• Determine data collection method
• Collect data
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The Benchmarking Process: Analysis
• Determine current performance gaps
• Project future performance levels
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The Benchmarking Process: Integration
• Communicate benchmark findings and gain acceptance
• Establish functional goals
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The Benchmarking Process: Action
• Develop action plans
• Implement specific actions and monitor and report progress
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The Benchmarking Process: Maturity
• Leadership position attained
• Practices fully integrated into processes
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Cost of Benchmarking
• Moderately expensive process:– Travel costs– Time costs– Database costs
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Some Stats
• Global Benchmarking Network survey (2008)– 450 organizations from over 40 countries
– 77% used mission and vision statements/customer surveys
– 72% used SWOT analysis
– 68% used Informal Benchmarking
– 49% used Performance Benchmarking
– 39% used Best Practice Benchmarking
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Advantages
• Minimizes costs• Saves time• Initiates formulation of strategic goals and
objectives• Facilitates organizational learning• Forces organization to think “outside the box”• Brings improvement in critical areas
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Top Benchmarking Companies of 2011
• APQC• HCL Expense Management• Alpine Access• TechCaliber Consulting• BPA International• AOTMP• PSS Product Support Solutions• A1 Electronics Inc.• DEVEO
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Conclusion
• Benchmarking = good learning opportunity– Stimulates creativity– Stretches cognitive abilities
• Possibilities of bringing about useful changes
• “Seeing is believing”
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Thank You
• Presented by:– Darya Balyasnikova
• DEM Program at UTM• CCT355• November 21, 2011
• Questions?– E-mail me: