Benchmarking is closely related to the analysis of competitors. By continuously comparing products, services, processes, and methods with those of other businesses, benchmarking attempts to ascertain the performance gap separating the firm from the “best in class.” At the same time, it should help to find ways of reducing this performance gap. The central figures here are productivity figures, turnaround times, costs, and quality. Benchmarking is not limited just to competitors. The following variants have been identified:
Internal benchmarking: Internal benchmarking compares functions and areas within the company. Data collection in this case is relatively simple. However, there is a danger of organizational blindness.
Benchmarking of competitors: Here the comparison is made with the strongest competitors. Usually it is extremely difficult to obtain the necessary data about the competition. In addition, limiting benchmarking to a particular branch or market can sometimes make it impossible to identify world class performers. This puts the company in danger of simply copying methods or processes within a branch of industry, thereby merely gaining equal footing with competitors rather than surpassing them.
General benchmarking: General benchmarking lifts the focus from an individual industry and instead seeks out top performers in all segments of the economy. Gathering data in this case is usually less difficult than for benchmarking of competitors. However, identifying suitable objects for comparison can be problematic.
No comments:
Post a Comment