Getting started with Benchmarking types: Demystified
In our last post regarding benchmarking, a generic light is shed over the subjected terminology. Now, let us cast an eye over the generic types involved in a subject.
There may be a multiple number of benchmarking notions, but here we will focus over the major shots.
It allows organizations to do scrutinize analyses of its performance while taking into account companys strategic objectives & customer satisfaction.
By going through the number of processes involved and the business metrics depicting an overall ongoing performance depicts a bird-eye overview of organizational health.
It can range from comparing one organizational unit to other one wrt performance, utilization etc.
It also provides easy access to other departments within the same company. However, the search for exceptional performance is often limited by the companys culture, norms etc.
It follows a better notion of Continuous Improvement & urges a managerial pool to front-line workers in seeking a better ways to do an existing work.
It is typically defined as The continuous process of comparing a firm’s practices and performance measures with that of its most successful competitor
Every single entity must keep am eye on the global leader while competing with the competitor of same stature. It will not only allow organization to develop CPI culture but also will do the needful in terms of analyzing ones position in global market.
When Xerox company started benchmarking in 1979 against its Japanese competitor than they came across any astonishing fact that it is not a production cost which is affecting an industrial bottom-line but a service & customer satisfaction were not being met proper ,resulting in the escalation of total cost of a product.
Also, it forces an organization to take an external perspective. However, non-competitive benchmarking i.e.: studying an innovations and new trends in the business, can also help in the execution of stated companys objective.
It compares similar functions typically outside the organizations industry and provides best opportunities to seek out benchmarking partners.
It comes down to a generic scenario in which one function/process is than compared in other sector to reaching out an optimal point.
Let us explain it with an example; suppose you are a sales agent and the time taken by you to close a deal is far extensive as compared to other person closing in insurance play. By drilling down the factors, one can analyses the major factors optimizing which sustainable improvement can be achieved.
It refers to the cooperation between various functions or organizations to achieve benchmarking results.
It permits partners to seek better ways in doing a particular process. By chartering the outlined metrics against the in-depth description of summarized needs of both companies, a path of stardom can be achieved in a minimal period of time.
It typically includes three major steps, getting started with the selection of a topic. Afterwards, decision makers decide the path to be adopted in the successful execution of the subject in the light of PDCS or PDSA cycle.
If your today is not better than yesterday, than you are surely in vain