Benchmarking

Types of Benchmarking

 Internal - This is a comparison among similar operations within one's own organisation.
 Competitive - This is a comparison to the best of direct competitors
 Functional - This is a comparison of methods to companies with similar processes in the
same function outside one's industry.
 Generic process - This is a comparison of work processes to others who have innovative,
exemplar work processes

Benchmarking Definitions
There are several generic definitions of benchmarking that provide varying insight.

 Xerox definition - The continuous process of measuring our products, services, and practices
against our toughest competitors or those companies known as leaders.
 Quality definition - A standard process used to evaluate success in meeting customer
requirements.
 Dictionary definition - A standard against which something can be measured. A survey mark
of previously determined position used as a reference point.
 Generic definition - A basis of establishing rational performance goals through the search for
industry best practices that will lead to superior performance.

The 10-step process - A structured way of looking outside to identify, analyse, and adopt the best in
the industry or function.

The Benchmarking process

The formal 10-step benchmarking process is shown in outline below.

References
 Camp. R. C., Business Process Benchmarking: finding and implementing best practices,
1995, ASQC Quality Press, Milwaukee.