In the industrialized world, it is widely accepted that a free market leads to greater efficiency in terms of productivity and cost. But how can competition be introduced into situations where for example alternative suppliers cannot be used? Benchmarking provides an effective substitute for competition. Benchmarking is a continuous, systematic process for comparing your own efficiency in terms of productivity, quality and practices with those companies and organizations that represent excellence. It has been demonstrated to have a profound effect in numerous situations where conditions of a 'planned economy' exist.
Benchmarking: A Signpost to Excellence in Quality and Productivity explains the concept of efficiency and how benchmarking can be utilized to improve performance. The authors identify three categories of benchmarking:
Internal: between units of an organizationExternal: between competitorsFunctional: equivalent operations in different organizations
To set up your own project, the book provides a step-by-step guide through the following essential stages:
Deciding what to benchmarkIdentifying benchmarking partnersGathering and analyzing informationImplementing for effect
This is a must have book for any organization embarking on the Benchmarking process.