Benchmarking is ……

“Benchmarking is the practice of being humble

enough to admit that someone else is better at
something and being wise enough to learn how
to match and even surpass them”

Benchmark is a “Standard used as test”

“Used to compare one’s performance against ,

best in class-achievement”
e.g. in production department
Continuous  Re-engineering Benchmarkin
Improveme  g
nt
10/17/08 hmahesh45@yahoo.com; VIM Pune 1
 Benchmarking usually follows the path..
Comparing
financial
performanc Comparing
e with past Financial
data of the Performanc Comparing
Company- e with Performance
ROI competitor with Best Performance
s Achievers in benchmarkin
performanc the Industry g with own
e ROI, ROA
More best
detailed processes,
analysis- with best
Time, Cost, practices in
Quality the industry
10/17/08 hmahesh45@yahoo.com; VIM Pune 2
 Benchmarking- Process
1. Select an area/activity to apply benchmark
2. Define/Identify the processes to benchmark
3. Identify the benchmarks (Partners)
4. Determine the GAP
5. Set revised targets based on GAP
6. Communicate the benchmarking process to teams
7. Implement changes
8. Evaluate the improvements

10/17/08 hmahesh45@yahoo.com; VIM Pune 3

 Benchmarking- Significance
1. Leads to excellence through improvement, initiates
healthy competition.
2. Going out of organization’s framework in search of
better ideas.
3. Initiates learning process in the organization, for
finding & adapting to new ideas.
4. Better understanding of one’s own programs at first.
5. Better , ambitious but attainable goals can be set &
pursued.
6. Gives reference point for performance measurement
(added meaning to performance).
7. Removes complacency (self satisfying attitude).
Evokes the urgency of purpose and achievement.
10/17/08 hmahesh45@yahoo.com; VIM Pune 4
 Benchmarking- Points to note
1. It can be quantitative as well as qualitative.
2. As it is application of “Benchmark” is not advisable
some kind of molding is needed.
3. Take care that it may not lead to worst case
situation.(disbelief, denial & despair)
4. Acquisition and ownership of data & information is
required.
5. It is a continuous process.
6. Note the aim is not reinvent the wheel, but at the
same time it should not become a copy cat.
7. Fear of sharing of information especially competitive
advantage is always there.
8. Arrogance & over confidence is of no use.
10/17/08 hmahesh45@yahoo.com; VIM Pune 5
 Thanks…..

10/17/08 hmahesh45@yahoo.com; VIM Pune 6