Benchmarking is the process of comparing the performance, practises, or processes of one organisation with those of other organisations in the same or similar industry. It is a tool for finding the best ways to do things, improving performance, and getting ahead of the competition.
Usually, there are four main steps in the benchmarking process:
Planning: In this phase, the organisation decides on the benchmarking study’s goals and scope, chooses the performance areas to be compared, and chooses the benchmarking partners.
In this phase, the organisation gets data from its benchmarking partners and looks at it to find best practises, performance gaps, and places where it can improve.
Integration: In this phase, the organisation puts the best practises and processes it found through benchmarking into its own operations and processes.
Monitoring: In this step, the organisation keeps an eye on the benchmarking efforts, evaluates how well they are working, and makes any changes that are needed.
Benchmarking can be done inside or outside the company. Comparing the performance of different departments or divisions within the same organisation is what internal benchmarking is all about. When an organisation does external benchmarking, it compares its performance to that of other organisations in the same industry or sector.
Benchmarking can be used in many parts of a business, such as quality control, customer service, marketing, product development, and operations. It can be a useful tool for improving performance, making things run more smoothly, cutting costs, and making customers happier. But it’s important to remember that benchmarking results should be carefully interpreted and changed to fit the organization’s unique situation and needs.
Usage
It is used in project monitoring and control
