Benchmarking
The Wikipedia definition of benchmarking says, Benchmarking is the process of comparing one's business processes and performance metrics to industry bests or best practices from other industries. Almost all organisations do it today for existence in this competitive world. It is necessary to know what is achieved by others, how it is achieved, compare it with yourself and keep continuously improving.
Though performance metrics benchmarking can be directly compared, it is important to note that through this method of comparative what is it we are trying to change as part of improvement in the name of benchmarking, especially if it is related to process or policy benchmarking. We should remember what works well for one organisation may not work well with another if we simply try to copy.
In some cases it is observed in the name of benchmarking it touches some policies or core values of the organisation for which the organisation exists. The identity of the organisation relates to such core values which makes it unique globally. But organisations without realising same tries to change it and in the process looses it's uniqueness or core competency of existence. In the process organisations may not realise that they are missing opportunity to create benchmark for the processes or polices which exists in the organisation in the name of benchmarking.
In my view, organisations should benchmark performance metrics. How to achieve same needs to be internally designed based on organisation's vision, mission and core values.
For example: an organisation may target to improve employee satisfaction. To do so organisation may have to deal with various processes and policies. While employee satisfaction index may be benchmarked, how to achieve same will vary from one organisation to another. If organisations try to copy policies and processes which are successful in another organisation and if the organisation already is known for employee friendly policies and processes, in the process of benchmarking the organisation may de-value what is already existing. In the complete process instead of creating an employee satisfaction benchmark, which might have been easier for the organisation to achieve, it may move further away from where it is today.
In fact, implementing processes and policies for benchmarking can make organisations become followers of others and can never help them to become leaders in the market. So focus on performance benchmarking but design processes and policies of your own - the key mantra to success.
In some cases it is observed in the name of benchmarking it touches some policies or core values of the organisation for which the organisation exists. The identity of the organisation relates to such core values which makes it unique globally. But organisations without realising same tries to change it and in the process looses it's uniqueness or core competency of existence. In the process organisations may not realise that they are missing opportunity to create benchmark for the processes or polices which exists in the organisation in the name of benchmarking.
In my view, organisations should benchmark performance metrics. How to achieve same needs to be internally designed based on organisation's vision, mission and core values.
For example: an organisation may target to improve employee satisfaction. To do so organisation may have to deal with various processes and policies. While employee satisfaction index may be benchmarked, how to achieve same will vary from one organisation to another. If organisations try to copy policies and processes which are successful in another organisation and if the organisation already is known for employee friendly policies and processes, in the process of benchmarking the organisation may de-value what is already existing. In the complete process instead of creating an employee satisfaction benchmark, which might have been easier for the organisation to achieve, it may move further away from where it is today.
In fact, implementing processes and policies for benchmarking can make organisations become followers of others and can never help them to become leaders in the market. So focus on performance benchmarking but design processes and policies of your own - the key mantra to success.
(Disclaimer: Views expressed are my own and does not reflect that of
my organisation and associates.)
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