What is benchmarking?

Benchmark is an extremely accurate tool or device to assess the standard or performance or improvement of a business or any other function.

What is benchmarking?

Benchmarking is the process of understanding the key issues within your own organization and learning from others who are better. It is a process of continuous improvement, a means of identifying and achieving “Best of the Best” for any chosen area of ​​activity. Benchmarking is all about setting standards. Quality is the degree of excellence of a thing from the customer’s point of view.

TQM is all areas where quality is applied. TQM is a commitment to a company-wide culture in which everyone is clear about the direction and purpose of the organization and supports each other in achieving these objectives. I now believe that all the confusion regarding benchmarking, quality and TQM is over. Benchmarking can be useful in many areas of business; The following are the areas where benchmarking is important to achieve superiority in the competitive business world.

• business planning
• policy development
• Deployment solution
• solve business problems
• continuous improvement
• customer satisfaction
• Cultural change
• Continuous learning
• Manage by facts
• Business Process Improvement
• Strategies development

Benchmarking methodology

There are around fourteen methodologies for the benchmarking process in today’s business world. Here we will be using Classification Xerox Methodology.

This involves five phases involving ten steps.

Schedule

1. Identify what is to be compared

2. Identify comparative companies

3. Determine data collection methods

Analysis

4. Determine the current performance ‘gap’

5. Future levels of project performance

Integration

6. Communicate benchmarking results and gain buy-in

7. Set functional goals

Stock

8. Develop action plans

9. Implement specific actions and monitor progress

10. Recalibrate the reference point