B e n c h m a r k i n g     s t r a t e g i e s

Definition:

Benchmarking Strategy is a consulting process, which can be used in the "Establish Strategy" or "Review Strategy" mode. It enables realistic objectives and the best option of a range of possible benchmarking approaches to be defined. It is more suitable for a "top-down" benchmarking approach than to individual benchmarking projects.

Characteristics:

The process concentrates on how the benchmarking activities contribute to three key aspects of organisational endeavour: Strategic Management, Operational Improvement and Change Management.

The Main Benefits

It helps to ensure that you get the best value for money from the tool of benchmarking. If you are using or planning to use benchmarking, you have made a reasonable investment in time and money and this ensures that you get the best bang for the buck. We know from experience that most organisations make sub-optimal use of benchmarking and this review will help them get as close to the optimum as is likely to get.

• Helps to choose the right processes to benchmark
• Helps to choose the right forms of benchmarking to apply in different circumstances
• Helps to ensure that there is linkage between key strategic intent and the nature of the benchmarking activity
• Helps to gain a much clearer understanding of how benchmarking can be linked with other improvement efforts
• Ensures that whatever is learnt from benchmarking is fed back into strategic planning processes
• Ensures that all possible use is made of the ability of benchmarking to assist organisational change
• Reviews the effectiveness with which benchmarking actually translates into ongoing operational improvement
• Confirms whether benchmarking is effectively giving an accurate picture of where the organisation is at and what other companies are doing.

An example from our casebook: In 1995, a government department asked us to assist them in developing a program to introduce benchmarking as an improvement tool, in all agencies and service providers covered by the department. We assisted in developing program guidelines, a program approach, communication materials, means of selecting agencies for demonstration projects, and project management guidelines. Subsequently we assisted in selection of specific benchmarking projects, ongoing technical advice to the project teams, review of outcomes and evaluation of the program. Over 20 benchmarking projects were completed and a range of resource materials developed for ongoing use. Benchmarking is now a well-established organisational improvement tool in the sector covered by the program.

Related Services:

Benchmarking Strategy links directly to Performance Benchmarking and Process Benchmarking, and indirectly to Performance Measurement.

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