Benchmarking Flashcards
What is Benchmarking?
A strategic management tool used to compare an organisation’s processes and performance metrics to industry bests or industry best practices from other organisation.
What is the definition of Internal Benchmarking and its purpose, benefits and Limitations?
Internal benchmarking involves comparing processes, performance, or practices within the same organisation across different departments, units, or locations.
The purpose is to identify and replicate best practices internally, thus improving overall efficiency and performance.
The benefits are: easier access to data, consistent organisational context and less complexity in implementing changes.
and the limitation is limited innovation potential, as it doesn’t introduce new external ideas.
What is the definition of External Benchmarking and its purpose, benefits and Limitations?
External benchmarking involves comparing your organisation’s performance with that of direct competitors in the same industry.
The purpose is to understand how your organisation stacks up against competitors and identify areas where you can improve to gain a competitive advantage.
The benefits are: provide
