More companies moving towards benchmarking

If you don’t drive your business, you will be driven out of business - BC Forbes
And a key element to drive business is benchmarking. Especially in today’s competitive time, where every move counts, where every wrong decision can wreck organisational processes and systems, benchmarking is the chief ingredient for success.

Industry experts say benchmarking, which refers to a business excellence tool, to find, adapt and implement outstanding practices to achieve superior performances, can help to a large extent in improving productivity and reducing turnaround time, said Bruce Searles managing partner, Benchmarking Practices, Australia, at the executive workshop on Structured Benchmarking organised by BestPrax Club.  

Searles said benchmarking is prevalent in many global organisations. “It helps increase market share, reduce cost of processes, boost morale and create value. Firms need to look at best practices of other organisations and compare.”

Robert Camp Sr from Best Practices Institute US, said
benchmarking helps in learning from others to improve operations. “What to benchmark, whom to benchmark, and where to get the information, are crucial elements of benchmarking.”

Experts say leadership is a major concept often benchmarked. Excellent leaders develop and facilitate achievement of vision and mission, and develop organisational values and systems required for success, and implement them through behaviour and action, said Searles. “When needed, leaders have to change the direction of organisation and inspire others to follow. Leaders need to develop sound management systems, create purpose, direction and culture of excellence, and identify and champion organisational change.”

Moreover, industry professionals say that benchmarking happens not just in private sector and in corporate houses, but also in government institutions, NGOs, hospitals, educational institutions, etc.

“Firms need to look outside their sector for ideas and learn how others are improving processes. Coal mines can learn from iron ore mines, while chemicals industry can learn from pharmaceuticals industry. Firms can look for similar techniques and systems in other industries and implement it in their industries,” said Camp.