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Benchmarking is the process through which a company measures its products, services, and practices against its toughest competitors, or those companies recognized as leaders in its industry.The goal of benchmarking is to identify the weaknesses within an organization and improve upon them, with the idea of becoming the "best of the best."
The steps taken for the Intalling/implementing Benchmarking process are
mentioned below
1. Identify what is to be benchmarked; it can be a service, process, or practice.
2. Create the benchmarking team in the organization
3. Identify the organization(s) you want to benchmark against. It can be other operating units within the company, competitors or unrelated companies. However, they should be a leader or "best in class" in the area being benchmarked.
4. Determine the indicators and the data collection method
5. Collect data
6. Determine current performance levels; this includes identifying gaps between your organization and your benchmarking partners.
7. Determine future performance levels; forecast the expected improvements of benchmarking partners so that goals set for the improvement program will not become quickly outdated.
8. Communicate the benchmark findings and gain acceptance from senior management and employees who will be asked to make improvements; present the methodology, findings and strategy for improvements.
9. Develop an action / improvement plan based on the strategy developed10. Implement specific actions and monitor process; this includes collecting data on new levels of performance; using problem-solving teams to investigate problems; and adjusting the improvement process if goals are not being met.
11. Recalibrate benchmarks; benchmarks are re-evaluated and updated, based on the most recent performance data.
The accurancy of benchmarking can be checked through the following
1.Assess performance metrics accurately
2.Compare yourself to industry leaders
3.Identify best practices.
4.Keep tabs on the competition
5.Set strategic goals that make sense for your organization
