What is Benchmarking?
Benchmarking is comparing your performance and processes against best-in-class organizations to identify improvement opportunities. Xerox pioneered formal benchmarking in the 1970s.
Types of Benchmarking
| Type | Compare Against | Pros/Cons |
|---|---|---|
| Internal | Within organization | Easy access; may miss external best practices |
| Competitive | Direct competitors | Relevant; hard to get data |
| Functional | Same function, different industry | Innovative practices |
| Generic | Similar processes anywhere | Best-in-world practices |
Benchmarking Process
- Plan: Identify what to benchmark, select partners
- Analyze: Collect data, determine gap
- Integrate: Communicate findings, set goals
- Action: Implement, monitor, recalibrate
Conclusion
Key Takeaways
- Four types: Internal, competitive, functional, generic
- Process: Plan → Analyze → Integrate → Action
- Adapt don't copy: Practices must fit your context
- Focus on process not just metrics