Benchmarking is a process used to compare the performance and best practices of an organization with those of other organizations. The ultimate goal is to identify improvements that can make significant changes to the organization.
To calibrate an organization's performance against well-respected organizations.
To obtain information on the best practices of other organizations.
To set priorities and allocate resources by learning from what others are doing.
Identify activities and practices to benchmark.
Collect data from organizations that have recognized ability or accomplishment in the activity. Suitable "benchmarkers" may include primary competitors, other divisions in a larger organization, and "world class" performers in a particular area. Be prepared to share as much information as you receive from benchmarking partners.
Integrate and analyze the data.
Act on the information collected by implementing features that can be adapted to your own organization.
Monitor improvements and conduct ongoing benchmarking.
As described below, learning strategies are often used in combination with one another or may be closely linked to one another.
Corporate Scorecard: A Corporate Scorecard is an internal tracking and measurement system designed to help achieve long-term goals. Benchmarking is a method for comparing an organization's activities against other organizations for the purpose of improving functions and performance.
Strategic Planning: A Strategic Planning process may involve using the results of Benchmarking to help analyze and make changes to its strategic direction.
Xerox Corporation
Xerox has used benchmarking to measure its products and processes against similar world class operations. The organization has partnered with:
American Express to study billing and collection.
Ford Motor Corporation to study plan layout.
L.L. Bean and Hershey Foods for warehousing and distribution.
Florida Power and Light for its quality process.
Motorola
Motorola has partnered with Domino's Pizza and Federal Express for ideas on how to rush delivery of its cellular phones.