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Benchmarking, Performances Measurement and Sharing The Reward Resulting From Improved Performance
Benchmarking, Performances Measurement and Sharing The Reward Resulting From Improved Performance
Introduction
Types of benchmarking
Benchmarking can take the form of several different types:
Internal benchmarking a comparison of internal operations such as one site (or project team) against another within the same company. Competitive benchmarking a comparison against a specific competitor for the product, service or function of interest.
Generic benchmarking a comparison of business functions or processes that are the same, regardless of industry or country.
Remember that your organisation's priorities may change with time, and so your benchmarks should be regularly reviewed
5 steps to successful benchmarking The five key steps in the benchmarking process are:
Plan: Clearly establish what needs to be improved make sure it is important to you and your customers and determine the data collection methodology to be used (including any KPIs). Analysis: Gather the data and determine the current performance gap - against a competitor, the industry or internally and identify the reasons for the difference. Action: Develop and implement improvement plans & performance targets. Review: Monitor performance against the performance targets. Repeat: Repeat the whole process benchmarking needs to become a habit if you are serious about improving your performance.