Benchmarking

3. Benchmarking Partners

Use the aims of your project to establish the kind of benchmarking partners you want.

3.1 You can use internal partners (eg different departments or sites) in order to standardise and improve your operations at the level of your best performers.

• If you only do internal benchmarking, you run the risk of complacency.
• Internal benchmarking is unlikely to lead to any dramatic insights.

3.2 Most benchmarking involves external comparisons.

• Aim to compare yourself against businesses of a similar size and structure, with similar objectives.Understanding how their objectives, constraints and cultures differ from yours is important if you are going to make meaningful comparisons.
• You can also compare separate processes which are going to be similar across different companies.For example, the operation of the mail room is likely to be similar for most companies.
• Competitors usually provide a direct comparison.It may be difficult to collect detailed information from them.
• There may be legal or ethical constraints which prevent a free exchange of information.

3.3 Benchmarking against outstanding businesses is one of the best ways to bring about a quantum leap in performance.

• It can be more difficult to make comparisons if they operate in a very different business environment.

3.4 Identify and select three to six individual partners.

• Your Business Link and trade association can suggest potential partners.
• Business publications and other information sources can provide ideas.
• Talk to colleagues, customers and suppliers to establish who leads the field in the area you are benchmarking.
• If you are searching in a broad or unknown area, contact a benchmarking clearing house or club (see 6.3).