Category Archives: Process Measurement and Analysis

Generic Benchmarking Here performance measures are concerned with specific work processes that are virtually the same for all industries that use these processes. Generic benchmarking can easily identify tho e firms that have adopted innovative processes, thereby providing targets that can be more readily acceptable by members of the organization. Examples of leaders in generic benchmarking include the Federal

Functional Benchmarking This type of benchmarking address's performance comparison with the best functional areas, regardless of the industry in which they arc located. For many years, dating well back into the 19th century. companies were organized and structured both to maximize efficiency and also to control growth. However, with the emergence of a single world economy and increased competition from ~l comer

Competitive Benchmarking This provides  comparison between an organization performance and that of its best direct competitors. The relative information-obtained here will show how the company compare – to other stirring in its industry. Benchmarking within an industry is often difficult because of the natural unwed willingness of competitor to share critical information.

Internal Benchmarking This type of benchmarking provides for a comparison among similar operations or processes  within a firm's own organization. It is often the starting point for identifying best practice that currently exist within the company. Internal benchmarking also provides the first step to documenting processes. which is necessary for identifying future areas for improvement. Internal benchmarking

Types of Benchmarking There are four general categories of benchmarking: (a) internal. (b) competitive. (c) functional, and (d) generic.

Maturity An organization reaches maturity when the best business practices that have been identified have been incorporated into all of the relevant business processes. thereby ensuring superior performance for the organization as a whole.

Action. The benchmarking findings and associated goals must be translated into action. Those. individuals who actually perform the tasks should determine how the findings can best be incorporated into the existing process.

Integration Here we use the findings from the first two phases to define tho e target areas that we want to change. As part of this pha e. we need to ensure that benchmarking concepts are implemented in the corporate planning process. and that benchmarking is accepted by all levels of management.

Analysis. The analysis phase focuses on obtaining an in-depth understanding of our firm's existing practices and processes as well as those of the organizations against which we will be benchmarking. Analysis  

Planning This phase of benchmarking identifies the areas that we should benchmark the specific organizations against which we should be benchmarking, the types of data we should collect, and the ways we should collect those data.