Benchmarking

Benchmarking is the process of comparing one's business processes and performance metrics to industry bests or best practices from other industries. Dimensions typically measured are quality, time and cost. In the process of benchmarking, management identifies the best firms in their industry, or in another industry where similar processes exist, and compare the results and processes of those studied (the "targets") to one's own results and processes. In this way, they learn how well the targets perform and, more importantly, the business processes that explain why these firms are successful.

Benchmarking is used to measure performance using a specific indicator (cost per unit of measure, productivity per unit of measure, cycle time of x per unit of measure or defects per unit of measure) resulting in a metric of performance that is then compared to others.

Also referred to as "best practice benchmarking" or "process benchmarking", this process is used in management and particularly strategic management, in which organizations evaluate various aspects of their processes in relation to best practice companies' processes, usually within a peer group defined for the purposes of comparison. This then allows organizations to develop plans on how to make improvements or adapt specific best practices, usually with the aim of increasing some aspect of performance. Benchmarking may be a one-off event, but is often treated as a continuous process in which organizations continually seek to improve their practices.

Read more about Benchmarking:  Benefits and Use, Collaborative Benchmarking, Procedure, Costs, Technical/product Benchmarking, Types, Tools, Metric Benchmarking

Other articles related to "benchmarking":

Marketing Operations - Benchmarking & Best Practices
... Also referred to as "best practice benchmarking" or "process benchmarking", benchmarking is a process used increasingly in Marketing to compare approaches in relation to best ... Benchmarking may be a one-off event, but is often treated as an ongoing process in which organizations continually seek to improve their practices ...
Global Benchmarking Network (GBN)
... The Global Benchmarking Network (GBN) is an alliance of leading benchmarking centres worldwide, which share a common vision and mission ... Current membership comprises 20 benchmarking centres in 20 countries, which represent more than 30,000 businesses and government agencies ... The GBN was founded in November 1994 by representatives from benchmarking centres in Germany, Italy, Sweden, the United Kingdom and the United States ...
Metric Benchmarking
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Benchmarking E-learning - IQAT
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