The objectives and applications of benchmarking have evolved over time, but it continues to be a valuable tool for seeking to achieve and sustain top performance. Benchmarking is frequently used to aid strategic and business planning. It plays a part in many ongoing performance management programs, and supports significant initiatives like merger synergy analysis and integration planning. Benchmarking also plays the groundwork for significant improvements, and more.
Benchmarking compares the business processes of one department or organization with the business processes of another department or industry competitor. It helps you understand what is normal for successful companies and the steps you need to take to improve performance.
Benchmarking can include studying core competencies and customer success standards, as well as many more areas in your business. Some types of benchmarking include:
Internal Benchmarking – Compares one internal process with another internal process. It helps ensure department efficiency and consistency in standards across the board.
External Benchmarking – Compares an internal process with the internal process of another company. This helps you see where your weaknesses are with the competition, or in your industry overall.
Performance Benchmarking – Compares the results of internal improvement initiatives to key performance indicators over the long term. This feeds into performance management, and helps to track the success of failure of business improvements over time.
Strategic Benchmarking – Compares the strategies of successful businesses with those of your own, It helps you define strategic goals and steps forward for better results.
Competitive Benchmarking – Compares your metrics directly to your competitors’ metrics. How do you stack up? Competitive benchmarking will tell you, and help you see what drives success in your market.
ScottMadden maintains a database of functional benchmarks and leading practices in corporate and shared services that include a mix of primary and secondary sources. Our practical expertise makes us uniquely qualified to benchmark your corporate and shared services functions. We assess process effectiveness, costs, staffing, and quality and benchmark against industry leaders to prioritize improvement opportunities for your corporate function or shared services operations.
Our recommendations identify opportunities to improve strategic direction, organizational design, staffing, processes, and technologies. We also indicate opportunities to reduce costs while improving quality, as well as baseline operations for continued improvement.
Sussex Economic Advisors is now part of ScottMadden. We invite you to learn more about our expanded firm. Please use the Contact Us form to request additional information.