Benchmarking is one of the most effective means to identify improvements which can make a significant difference to your organization. Most organisations tailor definitions of benchmarking to suit their own strategies and objectives. Two examples are given below.

"Benchmarking is simply about making comparisons with other organisations and then learning the lessons that those comparisons throw up".

Source: The European Benchmarking Code of Conduct

"Benchmarking is the continuous process of measuring products, services and practices against the toughest competitors or those companies recognised as industry leaders (best in class)".

Source: The Xerox Corporation

For those approaching benchmarking for the first time the plethora of definitions can be confusing, so it can help to focus on the learning and sharing that goes on during the process.

In practice, benchmarking usually encompasses:

• regularly comparing aspects of performance (functions or processes) with best practitioners;
• identifying gaps in performance;
• seeking fresh approaches to bring about improvements in performance;
• following through with implementing improvements; and
• following up by monitoring progress and reviewing the benefits.

Most business processes are common throughout industry. For example; NASA has the same fundamental Human Resources requirements for hiring and developing employees as does American Express. British Telecom has the same Customer Satisfaction Survey process as Brooklyn Union Gas. These processes, albeit from different industries, are all common and can be benchmarked very effectively. It's called "getting out of the box". 

For help and advice on Benchmarking, please contact info@erudconsulting.com.