Performance Measures Through Benchmarking and Diagnostic Evaluation of Key Result Areas in Industries

Abstract

The word “benchmark” comes from geographic surveying where it means to take a measurement against a reference point. We use the process of benchmarking to learn how to adapt this standard of excellence to our own organization. Benchmarking is another tool in the toolkit that will help the user to continually improve. Benchmark is defined as a measured “best-in-class” achievement. This performance level is recognized as the standard of excellence for that business process. Similarly, benchmarking is the process of continuously comparing and measuring against other organizations anywhere in the world to gain information on philosophies, policies, practices, and measures which will help an organization take action to improve its performance. Benchmarking is NOT… Only Comparative Analysis, Just a “study”, “Number crunching”, Site briefings and industrial tourism (all too often many benchmarking efforts go this way), Just “copying” or “catching up”, Spying or espionage, Quick and easy, A process improvement tool or continuous improvement effort separate or apart from the organization’s mission, goals, and objectives.