| Benchmarking can also be called comparing your | | | | information collected in the planning phase. Analyses |
| performances to those of top-level companies. The | | | | based on the collected data involves assessing |
| evaluation involves comparing how these companies | | | | reasons for the better outcomes of benchmarked |
| have achieved those levels. On the basis of this | | | | processes. |
| information, you can set targets for your own | | | | This analysis forms the basis for development of |
| company. | | | | better processes. The goal should be to develop an |
| Benchmarking is not just about goal setting; it also | | | | improved process for your organization. This objective |
| involves achieving superior performance. | | | | should be make as good a process or develop an |
| Benchmarking projects, like other projects, need to be | | | | even better one than the one being considered a |
| systematic and have a structured approach to | | | | benchmark. |
| benchmarking. There needs to be flexibility to allow | | | | 3. Integration Phase |
| innovation to obtain new information. | | | | The integration phase involves connecting the planning |
| Typically, there are four phases of the benchmarking | | | | and analysis steps to the action phase. |
| process - planning, analysis, integration and action. | | | | Only after senior management accepts the proposal |
| Phases Of Benchmarking: | | | | for the improved process from management and the |
| 1. Planning Phase | | | | head of department can the initiative move ahead. |
| The planning phase, being the first one, has to be | | | | The commitment of management has to be |
| error-free. Any mistakes will lead to the next phases | | | | established, as well as new functional goals. |
| being affected, as the effectiveness may not be up to | | | | 4. Action Phase |
| the mark. The identification of the benchmark itself | | | | The action phase is where the actual implementation |
| would be done in this phase. | | | | happens. It involves preparation of plan for |
| Top management should identify processes that are | | | | implementation involving various factors, such as the |
| relevant from the point of view of customer | | | | time schedule for the implementation, process owners, |
| requirements. The critical to quality (CTQs) factors | | | | targets that are necessary for implementation of the |
| should be studied properly to prioritize processes and | | | | project. |
| benchmarked to some organization. | | | | Senior management should also be involved, as well as |
| After proper study, the one that suits your goals most | | | | responsible for, coordinating activities, monitoring |
| would be required before selection for benchmarking. | | | | progress of plans and removing barriers to the |
| Superior processes should be identified as well as the | | | | implementation process. When the newly designed |
| key processes, best improvement areas, functions and | | | | process is in place, a report that lists out the benefits |
| critical success factors. | | | | of that process has to be created. |
| During this phase, you should be able to answer | | | | Benchmarking should be utilized for process |
| various questions as to the effective use of the new | | | | improvement taking into account the organization's |
| process, the costs involved required to bring in change | | | | performance management system. Continuous |
| and the potential benefits when changes are | | | | process improvement can help bring about a change in |
| implemented to reach benchmark levels. | | | | the culture of company, so they can then strive to |
| 2. Analysis Phase | | | | become the best in their field. |
| As the name suggests, this phase involves analyzing | | | | |