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Posted by IQMS Global
In today’s competitive business environment benchmarking comes as savior for business houses to achieve business excellence. Now, what do we mean by benchmarking and how it helps? It is systematic tool that allows a company to determine whether its performance of organizational process and activities represent the best practices. Dimensions typically measured are quality, time, and cost. Improvements from learning mean doing things better, faster, and cheaper. It denotes a comparison with select performance indicators from different organizations typically in the same industry, or with comparable organizations that are considered to be the best in class. All these help organizations to identify the areas where they are losing out and learn from others’ success and mistakes.
Benchmarking does not require any special type of activity; almost any activity can be benchmarked and there is no universal process of Benchmarking either. It does necessarily be the processes directly comparable to other organizations. Benchmarking, in fact, is a management process very often referred to as "best practice benchmarking” or "process benchmarking". Benchmarking keeps organization at their toes to thrive to be the best in the field. Otherwise, as is our nature we would be satisfied and relaxed thinking we are the best, no one is and cannot be. Just as “a man without an aim is like a ship without radar” so are organizations without benchmarking. Organizations should continuously set targets to attain the unattainable. Benchmarking can be done in five ways like Internal benchmarking, Competitive benchmarking, Functional benchmarking, Generic benchmarking, Collaborative benchmarking. Though it is a costly affair but it pays for itself. Benchmarking, we can say, aligns all the business processes to achieve business excellence. Benchmarking requires a lot of commitment from the organizations to make its implementation a success. It works in the areas of HR, Knowledge Management, Finance and host of other areas. It triggers innovation and improvement through competition. The world is digital now and moves faster with light speed so here Benchmarking comes to the rescue. It keeps organizations on the right track and they are aware where they are headed to. All these do not mean that it is a tool for cut-throat competition. Competition, yes it is, but in a healthier way. It in fact raises the level of not only the organizations as a whole but the entire industry. Its importance and effectiveness is forcing everyone to go for it which surely will increase in the next one or two years. Thus Benchmarking helps to identify strong and weak management practice and best practice to enable the gaps to be closed. While doing all these Benchmarking in turn helps organizations to achieve business excellence. To quote, “You are doing your best only when you are trying to improve what you are doing”, conveys what we can do through Benchmarking.
In today’s competitive business environment benchmarking comes as savior for business houses to achieve business excellence. Now, what do we mean by benchmarking and how it helps? It is systematic tool that allows a company to determine whether its performance of organizational process and activities represent the best practices. Dimensions typically measured are quality, time, and cost. Improvements from learning mean doing things better, faster, and cheaper. It denotes a comparison with select performance indicators from different organizations typically in the same industry, or with comparable organizations that are considered to be the best in class. All these help organizations to identify the areas where they are losing out and learn from others’ success and mistakes.
3 comments:
Benchmarking is a process of continual improvement. Once you have implemented changes, you should benchmark your business again to see the results. This will tell you what is working, and where you can still improve.Thanks for featuring this useful information for us.
best practices process improvement
Thank you for posting these information about business excellence. A lot of people that have a business need this to help them in management. Thank you!
The Adaptive Business Excellence Program enables organizations to model and manage their Key Performance Indicators (KPIs) in a much more effective manner. This includes understanding the cause and effect of KPIs as well as the hierarchy structure of KPIs.
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