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1. Benchmarking

2. Benchmarking
Internal
Benchmarking
Process/Activity
Benchmarking
Competitor
Benchmarking
Benchmarking is a key strategic analysis tool which
identifies areas for improvement through the
identification of best practice.
Benchmarking is used to understand & evaluate the
current position of an organisation in relation to best
practice.
There are 3 basic types of benchmarking:
• Internal benchmarking
• Competitor benchmarking
• Process/Activity benchmarking

3. Benchmarking
Internal
Benchmarking
Process/Activity
Benchmarking
Competitor
Benchmarking
Internal Benchmarking
Is a comparison using historical internally generated
information. Comparing own current performance
against previous performance.

4. Benchmarking
Internal
Benchmarking
Process/Activity
Benchmarking
Competitor
Benchmarking
Competitor Benchmarking
Competitor comparison can be the comparison of
performance against industry rivals or similar industry
products.
This may be by comparing products with products
produced by competitors
possibly by purchasing a competitors product and using
reverse engineering on it.

5. Benchmarking
Internal
Benchmarking
Process/Activity
Benchmarking
Competitor
Benchmarking
Process/ Activity Benchmarking
This is the process of comparing one's business
processes and performance to industry bests & best
practices from other companies.

6. Benchmarking
Advantages
Encourages continuous improvement
Identifies performance gaps
Learning from the success of others
Disadvantages
Identifying best practice difficult & costly
Management & staff may not committed
Differences
Other organisations unwilling to share data
Best practice continuously changing
May pay to much attention to performances
Stakeholders misinterpretation of results

7. Benchmarking
7 Steps to Benchmarking
Step 4: Measure performance of all
Step2: Identify KPI
Step 6: Specify improvements
Step 1: Set objectives & decide areas to benchmark
Step 5: Compare performances
Step 3: Select organisation/division or process for benchmarking comparison
Step 7: Implement & monitor improvements

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