What is Benchmarking?
We all put in so many efforts to reach on top of our career growth. After reaching the heights we still feel we need something more. But what is that something more? After all reaching on top isn’t the only thing we need.
Here we will discuss the need we keep looking for. That need is setting a benchmark. The urge to make yourself that one person everyone looks up to, to be like you. It is a vital thing that we need to understand what benchmarking is?
Benchmarking is an initial part of Business Performance Management (BPM). There are a lot of misunderstandings about it in the market. This is a generic define but is this enough for our understanding. So, let us broaden up the topic and get a brief about it and its benefits.
Benchmarking is a systematic and interminable process that enables organizations to identify their performance and measure themselves against the competitors in the market.
It is important to know that benchmarking should not be considered as individual’s performance. It focuses not on the individual but organization.
Benchmarking should not be considered a mere market research, it is much more than that. It considers the business that takes care of satisfaction level of customer. This ultimately helps the organization to realize superior business performance.
In the following article we will share few tricks with which you can benchmark your business:
1. Prepare and plan accordingly: It is very important that one must prepare for the upcoming projects and plan how you will be targeting in the market. Since benchmarking is all about setting measuring organization’s performance, one must prepare accordingly.
2. Collecting data and its analysis: Collecting data must be considered most important vehicle, as it involves what and how data is managed. It is crucial that all data must be certified to establish its accuracy and ability. A proper analysis of data must be carried out. The analysis must point out the strengths and weaknesses of the benchmarker, determine gaps between the benchmarker’s performance and the leaders; provide recommendations for the focus of performance improvement efforts.
3. Reporting: Once the analysis is done, a report must be created which must be clear, to the point and in an easily understood format for a clear perspective.
4. Take action on the improvement: It is assertive that every organization works in its planning and action to be taken but a benchmarker will focus on the improvements to be done too. One must plan a strategy to work on the improvements, which should be implemented to increase the performance of the company.
5. Commit the learning: Once the action is been taken on the improvement, the gains must be deep-seated in the organization for future reference.
6. Timely legal compliance – It is must to complete all applicable legal compliances on time so that penalty and good ranking can be created. This habit not only ensure your brand but also saves the business from penalties and legal hassles.
Since benchmarking can take place at the corporate, operational, or functional levels of the organization. These levels must be linked via gravitating series of interlinked goals to ensure systematic progress.
Note – Please note that the above article is for education purpose only. This is based on our interpretation of laws which may differ person to person. Readers are expected to verify the facts and laws