We know that benchmarking is not a strategybut that begs the question, what is it then? Should we even Benchmark at all?
Benchmarking is the process of studying industry or competitive practices, functions and products and finding ways to meet or improve upon them.
Companies from all different industries use benchmarking to gauge their successes and pinpoint their shortcomings.
The general process of benchmarking involves identifying problem areas, selecting top competitors who excel where a company falls short and making the necessary changes. There are several key advantages to using benchmarking in an organization.
Lowering Labor Costs One advantage of benchmarking may be lower labor costs. For example, a small manufacturing company may study how a top competitor uses robots for several basic plant functions.
These robots may help the competitor save a significant amount of money on labor costs. They may also identify the company that sold the competitor the robots.
Subsequently, the company using benchmarking may call the robot manufacturer to help set up its own system. Improving Product Quality Companies may also use benchmarking to improve product quality. Chemical engineers may study food or cleaning products in a similar manner. They can then compare various elements contained in competitive products to their own product line.
Subsequently, improvements can be made to product quality. Increasing Sales and Profits A company that uses benchmarking to improve its functions, operations, products and services may enjoy increases in sales and profits.
Customers are likely to notice these improvements. The benchmarking company may also promote is improvements through company brochures, its sales reps, magazine and television ads.
These efforts are likely to increase sales, especially among core customers. Companies that operate more efficiently due to benchmarking can drastically lower their expenses. These savings can be lead to greater profits. Considerations Some organizations use internal benchmarking to improve performance in different departments.
Department managers may study and emulate the best practices of one particular department. These changes may spark improvements among all departments. Internal benchmarking has its limitations, however.
This means the other departments were not truly benchmarking against the best departments out there.Read chapter 4 Comparisons with National Benchmarks: Pros and Cons: The National Assessment of Education Progress (NAEP) has earned a reputation as one of.
The afternoon will feature short oral presentations in two streams and provide an opportunity to learn about the latest research and leadership in the areas of PROMs and PREMs for quality assurance and benchmarking and PROMs to guide clinical care. Employee benefits benchmarking isn’t always an easy process, but a good employee benefits advisor can help you navigate the system in accordance with the law and help you understand the pros and cons behind this important practice.
Ward Benchmarking is the trusted source of performance data for insurance firms. Ward operates as a part of McLagan and Aon to bring talent, rewards, and performance expertise and data to . Pros and cons: No explicit pros and cons present Feasibility of the project: No explicit feasibility items mentioned Viability of implementation in another environment: Not explicity covered but the totality of the data reflects an assessment tool and a covering thereof that is rather solid.
Multiple Employer Plan Pros and Cons. Multiple employer plan pros and cons are the talks of the town inside the beltway. That’s because two landmark events have happened within the last month that have intensified the Multiple Employer Plan Pros and Cons conversation.