Chapter 4: Benchmarking Flashcards
Functional Benchmarking (APQC, Westcott))
The act of comparing the process or performance of a business function (IT. Finance, HR) in two or more organizations
Generic Benchmarking (APQC, Camp, Westcott)
The act of comparing the process or performance of two ore more companies irrespective of their industries.
Internal Benchmarking (APQC, Camp, Westcott))
The act of conducting performance or process benchmarking within an organization by comparing similar business units or business processes
Process Benchmarking (APQC)
The act of measuring and comparing discrete process performance and functionality against other organizations
Strategic Benchmarking (APQC)
The systematic process of evaluating alternatives, implementing strategies and improving performance by understanding and adapting successful strategies from external partners who participate in an ongoing strategic alliance.
Competitive Benchmarking (Camp, Westcott)
Comparing your own process with similar ones of competitors
Non-Competitive (Camp)
Comparing your own process with similar ones of non-competitors
Differences in Camp, Westcott and APQC Benchmarking?
APQC and Westcott Generic Benchmarking focuses more on having two excellent organizations partnering than determining what can be benchmarked, while Camp focuses on determining who is absolutely the best at a process and then seeking out that organization to benchmark
Internal benchmarking (Certified Black Belt)
Compares similar processes within the same company
Competitive benchmarking (Certified Black Belt)
Compare similar processes externally within same industry
Process Benchmarking (Certified Black Belt)
Compare similar processes externally outside of industry
Target (Definition)
An intermediary goal that lies between the goal and the benchmark (stretch goal).
Aim for the Benchmark?
Always need to aim higher than the benchmark otherwise you will always be chasing it.
