Benchmarking was introduced in many corporate organizations in the earlier stages of their incorporation. Today, those companies are one of the top business firms of the world. Toyota was the first one to implement this process. It was then followed by Ford Motors. The process that Ford Motors followed was known as 'Just in Time System'. Also known as Process Benchmarking this proves is one of the easiest ways to determine that whether an organization is following top industry standards or not. The most successful companies where this process was effectively implemented was Xerox. After doing an effective benchmarking process it was revealed that the company needs an annual productivity of 18% every year. After this, Xerox developed its own model where the plan was divided in to five categories that are planning, analysis, integration, action and maturity respectively.
There are many types of benchmarking methods. But when it comes to implementation it is varies from one company to another. Given below are their types.
Competitive: This process is mainly adapted by companies for comparing their performance of a particular product manufactured by them with the highest quality product. It is often done between the companies from identical sector.
Strategic: This process helps to improve the performance of a company. Here, a study is done about the best practices that are adapted by the companies. This is done by carefully studying the core competencies and the other strategies implemented by the companies.
Process: Here, a firm adapts the strategies applied by the best benchmarking firms and tries to apply them.
Internal: As the name suggests, it involves doing a comparison within their branches. One of the important benefits of doing this is that all the information or data can be accessed very easily. Moreover, it is also a very time consuming process.
External: In this benchmarking process, help of other organizations are taken so that they can also adapt the strategies and succeed.
Merely implementing a benchmarking process does not serve the purpose, a follow up process is also necessary. This is done by taking necessary feedbacks from experienced consultants. Hence, there are a range of benefits that a company can get by applying these techniques. Firstly, there is always a chance of continuous improvement and the performance of the products is also improved. Secondly, it initiates team work. This is such a type of process that can be implemented correctly only when all the team members co-operate with each other and participate in it.
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