Benchmarking is a term used in business operating procedures. To benchmark one’s business is to compare its entire standard operating procedures, with the one which is regarded as a pioneer, or is a tycoon in the relative market. Benchmarking is done to deduce accurate performances by comparing the internal practices of an organization with the external industries.The improvements therefore are made accordingly, depending upon the purpose of benchmarking and it can be any out of the misc. e.g. reducing the cost, increasing the production, human relations, etc. Benchmarking in business is used in deciding the most appropriate and reliable way to handle all the affairs in handling a specific business. And it is through the competitive benchmarking, that companies successfully achieve their set goals and missions statement respectively.

The process of benchmarking is studied under the stream of total quality management. The TQM is a philosophy in which consist the elements of various strategies, tactics, and above all includes the competitive bench marking technique. Generally, bench marking is of two types; partially and completely. The difference between these two is that in partial bench marking, the companies’ benchmark to point out their areas of glitch and work on them. Suppose a company is running with its own S.O.Pz’ but is unable to retain employees.

So this company would benchmark the above ranked in terms of their area of glitch and study the measures which they take to retain their employees. Partial benchmarking is relatively short-term and used to demonstrate a weak area of company and thus improving it. Where as to fully benchmark an organization is basically setting up a target line to follow; the company which is benchmarked is considered as a vision to achieve and all the measures are taken to take the company to that level which is bench marked. Generally, the trend of partial bench marking is followed as to achieve short term goals and excel in the pertinent field.

Benchmarking Process

The benchmarking process is highlighted below:

Identifying a critical process that needs improving

As mentioned before that benchmarking techniques can be applied to any of the business functions, so proper research techniques are required. These include informal conversations, exploratory research and moreover quantitative research, surveys, marketing research etc.

Identify an organization that excels in the process

In this step, the company ought to look out for the very best practice that is being carried out in the market which they can opt in order to improve their skill areas. The means by which you can identify a leader in the relative markets are customers, suppliers, analysts, magazines etc.

Contact the organization

Upon mutual agreement, the companies exchange the information which is beneficial for the party in benchmarking its organization.

Analyze the data

The data is garnered in the form of surveys, and other relative measures and is adeptly scrutinized to obtain the desired results.

Improve the critical process

Implement the new known improved practice which you have learnt, and through these practices the final project is shaped where the professional ideas and values are demonstrated.