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BENCHMARKING - Coggle Diagram
BENCHMARKING
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Methodology
Phase 1: Plan—establish the project scope, develop the data collection approach and requirements, and set the criteria for peer groups..
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Phase 3: Analyze—analyze and validate information collected to identify performance levels, leading practices, enablers, and proven templates and other tools.
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Types of Benchmarking
Competitive Benchmarking – comparison of the organisation’s performance against one or more competitors.
Functional Benchmarking – a variation of process benchmarking that compares a function of the organisation to the same function in other organisations.
Generic Benchmarking – a variation of process benchmarking that compares like processes of two or more organisations without limitation to competition of the same industry.
Industry Benchmarking – comparison of processes within organisation in the same industry, but not necessarily competitors
Definition
David T Kearnes - the continuous process of measuring products, services and practices against the toughest competitors or those companies recognised as industry leaders.
"Benchmarking Clearinghouse" - the practice of being humble enough to admit that someone else is better at something, and being wise enough to learn how to match and even surpass them at it
Grinyer & Goldsmith - the ongoing structured process of measuring and improving products, services, practices and processes against the best that can be identified worldwide to achieve and sustain competitive advantage
Benchmarking is the process of comparing one's business processes and performance metrics to industry bests and/or best practices from other industries.
used to measure performance using a specific indicator (cost per unit of measure, productivity per unit of measure, cycle time of x per unit of measure or defects per unit of measure) resulting in a metric of performance that is then compared to others.
Benchmarking involves management identifying the best firms in their industry, or any other industry where similar processes exist, and comparing the results and processes of those studied (the "targets") to one's own results and processes to learn how well the targets perform