Benchmarking is the process of comparing one’s business processes and performance metrics to industry bests and best practices from other companies. Dimensions typically measured are quality, time and cost. In the process of best practice benchmarking, management identifies the best firms in their industry, or in another industry where similar processes exist, and compares the results and processes of those studied (the “targets”) to one’s own results and processes. In this way, they learn how well the targets perform and, more importantly, the business processes that explain why these firms are successful.

Benchmarking is used to measure performance using a specific indicator (cost per unit of measure, productivity per unit of measure, cycle time of x per unit of measure or defects per unit of measure) resulting in a metric of performance that is then compared to others.

There is no single benchmarking process that has been universally adopted. The wide appeal and acceptance of benchmarking has led to the emergence of benchmarking methodologies.

We have adopted the 12 stage methodology for a comprehensive process mapping.

Select subject

1. Define the process
2. Identify potential partners
3. Identify data sources
4. Collect data and select partners
5. Determine the gap
6. Establish process differences
7. Target future performance
8. Communicate

• Adjust goal
• Implement
• Review and recalibrate