What is Benchmarking?

Benchmarking is a systematic process of comparing, measuring, and analyzing the products, services, or processes of an organization against current best practices of other (preferably world-class) organizations in order to attain superior performance.

Types of Benchmarking

Internal -- Comparing a process with a similar operation within your own organization.

Competitive -- Specific competitor-to-competitor comparison for the same product, services, or processes.

Functional -- A comparison to industry leaders or to similar functions within the same broad industry.

Generic -- Compares work practices or processes across organizations and products.   Most useful for identifying innovations.

Strategic -- Proactive analysis of emerging trends options in markets, processes, technology and distribution that could affect strategic direction and deployment.

The Benchmarking Process

• Determine what to Benchmark.
• Plan the Study to include determining scope and approach of the study, forming and training a team, defining tasks, and setting milestones.
• Systematically collect data and analyze partners and solicit their interest.
• Collect data from partners and analyze.
• Implement best practices.

Benefits of Benchmarking

• Customer requirements are satisfied more effectively.
• Measures of productivity, performance and customer service are determined.
• Strategic targets are established representing current best practices.
• Acceptance of breakthrough thinking helps overcome resistance to change.
• Better performance often is attained by adapting and using best practices.

Benchmarking Code of Conduct

• Legality: Don't discuss proprietary information..
• Exchange of Information: Give what you expect to receive.
• Confidentiality: Keep Benchmarking data confidential between participating organizations.
• Use: Use Benchmarking information for process improvement with partnering organizations only. External sharing of organization name and data by permission only.
• Party Contact: Initiate contacts, whenever possible, through a benchmarking contact designated by the partner organization.
• Third Party Contact: Obtain an individual's permission before providing their name in response to a contact request.
• Preparation: Be prepared, particularly, at initial partnering contact.

Conclusion

• Benchmarking contributes to better performance and lower costs.
• Education and networking are needed.
• Benchmarking holds even greater promise in the future for major breakthroughs in management efficiencies.

Benchmarking Resources

• Benchmarking Trifold - This pamphlet provides an overview of the benchmarking process.

• Benchmarking Handbook - A descriptive guide to assist you in using benchmarking as a tool for organizational improvement. (Coming Soon)

• Other Benchmarking Sites of Interest - A Collection of useful links to resources on the internet

Please send comments to: leadingchange@hqda.army.mil

Last revision: 18 Aug 2008