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A programme for benchmarking.

Article Excerpt
[check] This checklist is for managers new to benchmarking or for those wishing to review their current benchmarking practice.

Benchmarking is a powerful tool for organisations seeking continuous improvement. It is an essential part of many change programmes, including total quality management and business process re-engineering. It is a challenging technique to use and requires careful management and a high level of commitment. Used effectively, it can provide organisations with a continuous competitive advantage.

Various types of benchmarking exist, including:

* Internal benchmarking--the measurement and comparison of practices with similar practices in other parts of the organisation.

* Industry or competitive benchmarking--industry-specific comparisons made either between direct competitors or with target companies making dissimilar products in the same industry.

* Functional or non-competitive benchmarking--the direct comparison of a function in two or more organisations, which may or may not be in the same industry.

* Generic or best practice/world class benchmarking--benchmarking of the best practice of recognised world class organisations.

Most organisations can use either one or a mixture of these.

Definition

Benchmarking is the ongoing structured process of identifying, understanding and adapting outstanding practices of industry leaders to help an organisation improve its performance and achieve and sustain competitive advantage.

Advantages of benchmarking

* Aids the setting or stretching...

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