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Benchmarking Concept
The term benchmarking originates from the
English term benchmark, which refers to the level quotes used in
topographical measurements and was introduced in business language by
the company Xerox, that defined it as “the continuous process of
measuring and comparing our products, services and practices with the
strongest competitors or with the companies known as industry leaders”.
Therefore, benchmarking in no more than a management process or
technique by which the companies or organizations evaluate its processes
performance, management systems and procedures comparing to the best
performances found in other organizations.
As a rule are used the most successful
competitors as a comparison term, even though can also be used companies
from other activity sectors. The goal of benchmarking is therefore, to
stimulate and smooth organizational changes and performance improvement
through the learning with others. The evaluation and comparison process
can be made for the organization as a whole or aim only a certain
process, department or business unit. Through benchmarking organizations
obtain references that allow them to identify ways to improve its
internal performances. The principle of this tool is that no company is
the best in all areas and that, hence, should follow the examples of
those who are superior.
Types of Benchmarking: basically, exist
three types of benchmarking: internal, competitive and generic or
multi-sectorial.
In the case of internal benchmarking, it
is the most used. Consist on comparing the transactions of the company
with those of an internal department or of other organizations of the
same group. It is easy to implement and the aim is to internally
identify which is the best model to follow.
As regard to competitive benchmarking, has
as reference direct competitors.
Products and services are compared, as a
way to overcome the performance of the competitive companies. It’s more
difficult to put into practice because the information about the
competitors methods are difficult to obtain.
Relatively to multi-sectorial
benchmarking, consists in the comparison with companies from other
sectors, but known as presenting better exercise. Since they are non
competitor companies, the availability to share information is generally
bigger.
Benchmarking deployment: In the deployment
of a benchmarking process must undergo the following stages:
. The first step should be planning,
namely the identification of which goals to be achieved and the choice
of who should be analyzed.
. Following begins the gathering of data,
analyzing existent public information and the information made available
by the company chosen as reference.
. Follows the analyses to the data and
information gathered, determining the performances differences and the
identification of the responsible factors for the best results of the
referenced company.
. The last step consists on the adaptation
and improvement through the decision-making regarding the actions
implemented to improve the profitability and competitiveness of the
company.
Translated from Portuguese
by Susana Saraiva, Portuguese-English and English-Portuguese translation
specialist. Contact: spams@sapo.pt.
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