benchmarking


benchmarking
The process of identifying the best practice in relation to products and processes, both within an industry and outside it, with the object of using this as a guide and reference point for improving the practice of one's own organization. Benchmarking can take place within an organization, when it may form part of a total quality management (TQM) exercise; in relation to direct competitors, although such organizations may be unwilling to divulge the details of their practices; or in relation to organizations in totally different fields, in which case the main value of the practice is that it forces people to look outside their established patterns of behaviour. Most of the early work in benchmarking was carried out in manufacturing but the technique is now applied in a wide range of organizations. Typical areas in which benchmarking can be expected to bring benefits to an organization include:
• Customer satisfaction. An organization wishing to improve some aspect of its performance (e. g. , its website) might ask customers how this compares with that of competitors. By identifying and making improvements the company can expect to improve sales in the long run.
• Cost reduction. The benchmarking exercise may identify an area in which the organization has higher costs than competitors. Potential savings may be identified, such as reducing the number of suppliers or making better use of technology. Benchmarking can be applied to all departments.
• Increased efficiency and effectiveness. Benchmarking can help to streamline processes and identify ways of delivering a better service. Before introducing benchmarking an organization will have to identify the costs of the exercise and the potential benefits and cost savings. The most significant cost will be the management time.

Big dictionary of business and management. 2014.

Look at other dictionaries:

  • Benchmarking — is the process of comparing the cost, time or quality of what one organization does against what another organization does. The result is often a business case for making changes in order to make improvements.Also referred to as best practice… …   Wikipedia

  • Benchmarking — Saltar a navegación, búsqueda El benchmarking es un anglicismo que, en las ciencias de la administración de empresas, puede definirse como un proceso sistemático y continuo para evaluar comparativamente los productos, servicios y procesos de… …   Wikipedia Español

  • benchmarking — The comparison of practice in other organisations against one s own organisation in order to identify areas for improvement. + benchmarking a procedure for testing whether the standard and price of services is consistent with the market standard… …   Law dictionary

  • benchmarking — A method of measuring USPS processes against those of recognized leaders. It helps establish priorities and targets leading to process improvement. It is undertaken by identifying processes to benchmark and their key characteristics; determining… …   Glossary of postal terms

  • Benchmarking — Le benchmarking (en français référenciation, étalonnage ou parangonnage[1]) est une technique de marketing (mercatique) ou de gestion de la qualité qui consiste à étudier et analyser les techniques de gestion, les modes d organisation des autres… …   Wikipédia en Français

  • Benchmarking — Dieser Artikel oder Abschnitt bedarf einer Überarbeitung. Näheres ist auf der Diskussionsseite angegeben. Hilf mit, ihn zu verbessern, und entferne anschließend diese Markierung. Benchmark (engl. „Maßstab“) oder Benchmarking (= Maßstäbe setzen)… …   Deutsch Wikipedia

  • benchmarking — A technique for measuring an organization s products, services, or activities against other best performing organizations. Benchmarking is a continuous process and helps an organization focus on being competitive. Most of the early work in this… …   Accounting dictionary

  • Benchmarking — Bench|mar|king , das; s [engl. benchmarking, zu: to benchmark = Maßstäbe setzen] (bes. Wirtsch.): Vergleich von Herstellungsprozessen, Managementpraktiken u. Produkten od. Dienstleistungen, um Leistungsdefizite aufzudecken. * * * Benchmarking   [ …   Universal-Lexikon

  • benchmarking — See benchmark (2) * * * benchmark benchmark 2 verb [transitive] COMMERCE to use a company s good performance as a standard by which to judge the performance of other companies of the same type: benchmark somebody/​something against something …   Financial and business terms

  • benchmarking — The comparison of data or operations against those of similar organizations. Benchmarking, whether *quantitative or *qualitative, is often performed with the intention of seeking ways to improve an organization’s operations. Auditors also… …   Auditor's dictionary