Benchmarking is the process of comparing business processes and performance metrics to industry bests and best practices from other companies. It involves measuring one's operations or processes against leaders in the same industry or other industries. There are two main types: competitive benchmarking studies competitors from a distance, while cooperative benchmarking involves collaboration between partner firms. The benchmarking process follows steps like selecting processes to study, collecting data, analyzing performance gaps, planning improvements, and monitoring changes. Management commitment is crucial to providing resources and enabling necessary disclosure and changes.

1. BENCHMARKING

2. Benchmarking
 It is the process of comparing and
measuring an organization’s operations or
its internal processes against those of a
best-in-class performer from inside or
outside its industry.
 It is finding the secrets of success of any
given function or process so that a
company can learn from the information
and improve on it.

3. Key points about Benchmarking
 It is popular improvement tool
 It is concern with processes and practice
 It is respected means that require change
 It between consenting firm that may or may not
be a competitor.
 It compares your processes or practice with the
target company.
 The goal of benchmarking is to find “Secrets of
Success”.
 It is equally beneficial for both large and small
businesses.

4. Types of
Benchmarking

5. Types of benchmarking
 Competitive benchmarking:
 In which a competitors operation is studied from a
distance without the cooperation of the target firm.
 The aim is to learn something that can help to
improve process or product quality.
 Cooperative Benchmarking:
 In which key processes are the focus for thorough
improvement.
 This involves a cooperative effort by two firms

6. Benchmarking
Process

7. Benchmarking Process
 Following are the steps of benchmarking
process
 Obtain Management Commitment
 Baseline your own processes
 Identify your strong and weak processes
 Selected processes to be benchmarked
 Form benchmarking teams
 Research the best-in-Class

8.  Select candidate best-in-class
 Form agreements with benchmarking
partners
 Collect Data
 Analyze data and establish the gap
 Plan action to close the gap
 Implement Change
 Monitor
 Update benchmarks

9. Phases of Benchmarking
 There are three phases of benchmarking
 Preparation
 Execution
 Post-execution
 Preparation
It consists of 1st seven steps of Benchmarking Process
 Obtain Management Commitment
 Baseline your own processes
 Identify your strong and weak processes
 Selected processes to be benchmarked
 Form benchmarking teams
 Research the best-in-Class
 Select candidate best-in-class

10.  Execution:
 Form agreements with benchmarking partners
 Collect Data
 Analyze data and establish the gap
 Plan action to close the gap
 Implement Change
 Post-execution
 Monitor
 Update benchmarks

11. Role of management
in Benchmarking

12. Role of management in
Benchmarking
 It play a crucial role in benchmarking process, in
fact without the approval and commitment of top
management, benchmarking is not possible.
 Following considerations require management’s
approval before the process can start.
 Commitment to change
 Funding
 Human Resources (Personnel)
 Disclosure (disclose of the information regarding processes)
 Involvement

13. Obstacles to successful
Benchmarking
 Some of the common obstacles R
 Internal focus
 Benchmarking Objective Too Broad
 Unrealistic Time tables
 Poor Team composition
 Improper Emphasis
 Selection of wrong partners
 Insensitivity to partners