Management Concepts & Organisational Behaviour - Benchmarking
Guidelines to Benchmarking
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Companies approach benchmarking in different ways. IBM has a four step approach.
Guidelines
to Benchmarking:
Companies approach benchmarking
in different ways. IBM has a four
step approach. AT & T has a nine step approach and Xerox a ten step
approach. All these approaches have the general guidelines given below:
-- Do not go on a fishing expedition: When preparing a benchmarking study, pickup a specific area in the organization that needs improvement. This may be quality, customer satisfaction, accounts payable or delivery time. Then do your homework, including thoroughly reviewing your own processes and procedures before picking a company that excels in the particular area chosen.
-- Use Company people: The people who are going to implement changes need to see and understand for themselves, so it is they who should make the visits to other firms which are benchmarked and have the discussions with the concerned people. Further, the visits should be short and the working teams small.
-- Exchange information : You should be ready to exchange information and provide answers in turn to any questions you might ask another company.
-- Legal concerns: Avoid legal problems which might arise as a result of discussions that might imply price fixing, market allocation or other illegal activities. This could lead to problems. Do not expect to learn much about new products of competitors by the benchmarking process. Most benchmarking missions focus on existing products, business practices, human resources and customer satisfaction.
-- Confidentiality: Respect the confidentiality of data obtained. Companies that agree to share information may strongly object if that information leaks out to a competitor.
-- Do not go on a fishing expedition: When preparing a benchmarking study, pickup a specific area in the organization that needs improvement. This may be quality, customer satisfaction, accounts payable or delivery time. Then do your homework, including thoroughly reviewing your own processes and procedures before picking a company that excels in the particular area chosen.
-- Use Company people: The people who are going to implement changes need to see and understand for themselves, so it is they who should make the visits to other firms which are benchmarked and have the discussions with the concerned people. Further, the visits should be short and the working teams small.
-- Exchange information : You should be ready to exchange information and provide answers in turn to any questions you might ask another company.
-- Legal concerns: Avoid legal problems which might arise as a result of discussions that might imply price fixing, market allocation or other illegal activities. This could lead to problems. Do not expect to learn much about new products of competitors by the benchmarking process. Most benchmarking missions focus on existing products, business practices, human resources and customer satisfaction.
-- Confidentiality: Respect the confidentiality of data obtained. Companies that agree to share information may strongly object if that information leaks out to a competitor.
Tags : Management Concepts & Organisational Behaviour - Benchmarking
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