STAGES OF BENCHMARKING PROCESS ARE:
01 - IDENTIFY PERFORMANCE INDICATORS OF THE BUSINESS TO BE BENCHMARKED - this could be decided by interviewing customers and finding out what they consider to be most important
for ex --> research may reveal the most important factors are the reliability of the product, speed of delivery and after sales service they then can be benchmark performance indicator (BPI)
02 - MEASURE PERFORMANCE IN THESE AREAS - using reliablity records, delivery records, and number of customer complaints to gather data
03 - IDENTIFY THE BUSINESS IN THE INDUSTRY THAT ARE CONSIDERED TO BE THE BEST - the best businesses might be assessed by management consultants or by benchmarking schemes operated by the government or industry organisation
04 - USE BPI DATA FROM THE BEST BUSINESS TO ESTABLISH THE WEAKNESSES OF THE BUSINESS - this data could be obtained from other businesses by matual agreement or from published accounts, specialist industry publication or contact with customer and suppliers
05 - SET STANDARDS FOR IMPROVEMENT - these might be the standards set by the best firms or they be set even higher to create a competitive advantage
06 - CHANGE PROCESSES TO ACHIEVE THE STANDARDS SET - this may require nothing more than a different way of performing one task. however, more substantial changes may be necessary
07 - RE-MEASURE - the changes to the process need to be checked to see if the new, higher standards are being reached. benchmarking is not a one-off excercise and, to be effective, it should become a continuous process.