It enables comparison between organisational efficiency with the best competition conduct thereby demarcates priorities for improvement.
What is Benchmarking?
Benchmarking is a systematic and continuous measuring process. It compares processes with entrepreneurial managers on the whole world. Its purpose is to get information, which will help to assume precautions for efficiency improvement.
Benchmarking is a measured value of „the best in its group“, reference or measurement standard for comparing. This efficiency level is appreciated as an excellence standard for a specific entrepreneurial process.
How to make Benchmarking?
It is necessary to determine areas and indicators, which we will compare with indicators, which were reached by the best in the group. It means that we will compare indicators, which are strategic for us and it is necessary to reach same and better results as our competition conduct. After evaluation we will propose some steps to indicators improvment. We will develop these steps into relevant processes. Improving is periodically repeated and and there are created possibilities for leading excellence development.
It is not easy to get indicators for comparing. We can use the annual report, technical literature, information exchange, specialist conferences, information buying from specialized companies, the Palatinum database as a source where exist or rise instant/sample indicators for single market segments – like fmcg, farmacy etc.
Examples:
One famous finance company determined a vision – to offer a service excellence.
One of strategic purpose was to get some new clients and keep up existent customers. For reaching hereof purpose there were defined areas, which companies have to locate. The company set indicators in those areas – satisfied customers percentage, share of follow-up sales, new clients recommendation level, ability to respond to complaints, perception availability, communication and request disposal and product availability. There were defined measurable indicator for each area, which are annualy monitored a compared with the best done in the same segment. This makes possible to accept disposals, which can create presumptions to progressive propose reaching. To be the best in given group and to be competitive leader on the market.