Benchmarking Flashcards
1
Q
Definition
A
Comparison of processes, practices, products, or services against recognized leaders or best practices to identify areas for improvement.
2
Q
Types of Benchmarking
A
- Internal Benchmarking
- Competitive Benchmarking
- Functional Benchmarking
- Generic Benchmarking
3
Q
Internal Benchmarking
A
Comparing performance against other units or departments within the same organization.
4
Q
Competitive Benchmarking
A
Analyzing performance against direct competitors in the industry.
5
Q
Functional Benchmarking
A
Comparing processes or practices with those of companies in different industries but with similar functions.
6
Q
Generic Benchmarking
A
Examining processes or practices in unrelated industries to identify innovative approaches.
7
Q
Process or Steps
A
- Identify what to benchmark.
- Select benchmarking partners.
- Collect data and analyze performance gaps.
- Set improvement goals.
- Implement changes.
- Monitor progress and recalibrate benchmarks as needed.
8
Q
Benefits
A
- Identifies areas for improvement.
- Provides insights into industry best practices.
- Enhances competitiveness.
- Drives innovation.
- Facilitates strategic decision-making.
9
Q
Challenges
A
- Identifying appropriate benchmarks.
- Obtaining accurate and relevant data.
- Ensuring buy-in and commitment from stakeholders.
- Overcoming resistance to change.
- Maintaining confidentiality of sensitive information.
10
Q
Examples
A
- Financial benchmarking: comparing financial metrics like profitability and efficiency ratios.
- Operational benchmarking: comparing processes such as manufacturing or service delivery.
- Strategic benchmarking: comparing strategic initiatives and positioning.
- Quality benchmarking: comparing product or service quality metrics.
