Benchmarking

Decision Making Technique
Benchmarking
Benchmarking is a tool that provides goals for realistic process improvement and helps you understand the changes required to improve performance. You may use benchmarking to identify and rectify problem areas, implement strategic change initiative, or for continuous process improvement. Benchmarking is the practice of being humble enough to admit that someone else is better at something, and being wise enough to learn how to be as good or even better than them. (McCall, Jr. & Kaplan, 2003)
Companies benefit from benchmarking through improved performance and productivity levels. Benchmarking helps, organizations understand their industry better, which leads to innovative thinking. Innovative thinking helps you to achieve the desired performance level more rapidly. Other benefits include the identification of the best practice to use in a particular process. Savings are generated using benchmarking because it allows you to continuously im...