What is benchmarking
The main feature of benchmarking as an approach is the adaptation of the principles that are used in more successful companies. If you simply adopt other people's approaches, they will not give the desired results, since the specific nature of the original structure will not be left out. This is why a variety of organizations are suitable as benchmarks for benchmarking, not just direct competitors, but also companies targeting a different target audience, or even companies that are far from the scope of an improved organization.
The consequences of benchmarking are fundamental improvements, but only if, before starting, you understand your own processes. If you are trying to compare two models, one of which you are not quite clear, then you will not get a clear picture. Therefore, before you start benchmarking, you usually monitor and analyze your own production processes.
There are several types of benchmarking. Internal benchmarking is available to every company, since the comparison of processes is done within the same organization. For the comparison to be effective, two similar processes are selected, one of which is successful, and the other is not. After the comparison, usually there are conclusions and ideas for improvement.
Competitive benchmarking involves comparing with your competitors. The problem is that it's quite difficult to get important data about competitors, as they usually keep such things a secret. It is best to choose competitors that are more successful in the market. For example, if you are engaged in regional deliveries, then you can try to find out more about the company that operates all over the world. Sometimes for competitive benchmarking, not the most ethical and legal methods are used: hire fake employees, send spies or try to buy information from employees of a competing company.
Functional benchmarking is a process that compares approaches to doing business or solving certain problems, but as a model is taken not by a competitor company, but by a company operating in a completely different field of activity. Benchmarking in this case can act as one of the aspects of successful mutually beneficial cooperation.
Average Benchmarking. For this process, select several organizations, each successful in its niche, and try to identify effective approaches in the work of each of them. Many companies can borrow any correct principles and use them in another area of activity.
Once suitable processes are identified, it is time to implement improvements in your own organization. A strategic plan of changes is drawn up, and then it is consistently implemented. At the control stages, the analysis of what is happening is done, as it happens that some business processes "do not take root" or do not give the expected effect. It is important to identify such things as early as possible.