I have a goal. This week will be benchmarking week for me. I am going to do some research every single day, in order to find out a lot more about benchmarking. I have some knowledge about the term, but all I really know can be said in a few sentences, something like:
“Benchmarking is the process of comparing the cost, time or quality of what one organization does against what another organization does. The result is often a business case for making changes in order to make improvements.”
I borrowed this definition from Wikipedia.
The point is that your organization want to find a way to improve its performance, in order to reduce costs, time or increase the quality (of its products or services).
Benchmarking can be a one-time event, or as I would think would be a lot better, an event done every second year or so. This way, it’s a lot easier to compare the new results with the old results, and find out how “healthy” your organization is compared to its health from the past.
Usually, as far as I know, benchmarking is done by individual companies. But, it can also be done by a group of companies. I think that this might be happening when a chain of car dealerships (Volvo) are comparing themselves each year, and every single year they provide us with a winner… hence, the “best” Volvo dealership in the country. But I am not sure that this is really benchmarking or something else.
What I have learned so far, is that benchmarking should be done by comparing one organization with another “identical” organization. You can’t compare within your own organization, even though you have similar functions at different levels in your organization. But I guess that you can compare your own organization if you have different factories in different cities or countries and they are identical. Because, I believe that this is really what benchmarking is all about?
Or at least, the benchmarking is done inside the same brand… not between competing brands or businesses?
From this, can we do benchmarking in the Traffic Exchange industry? By comparing each Traffic Exchange? Just a thought..
Anyway, this has been my first day of reading about benchmarking and the topic of tommorrow will be about the process and the methodologies.