According to Dr Robert Camp, Chairman of the Global Benchmarking Network, the major change initiative happening around the world is benchmarking. “Benchmarking is a continuous process of measuring our products, services and practices against our toughest competitors or those organisations renowned as leaders,” he said.
“It is simply a matter of knowing your operations, and then comparing your performance to others, that will provide you with the basis for superiority.”
He said that it is important to look outside our own industries to find better ways of doing things. Search out the best practices, and rather than merely implementing what you find, creatively use what you have learnt adapting ideas to meet your own needs.
Starting in the manufacturing sector, benchmarking has since moved into the service sector, not-for-profit organisations, government and education. Centres for excellence are being established around the world to assist organisations with performance measurement.However, Dr Camp warned about the risk of placing too much emphasis on measurement at the expense of actual processes.
“Failures of businesses are due to processes not people,” he said. “Real improvements will only come by improving processes. “How well your organisation’s key processes are identified, analysed and improved will determine your success in the 1990s and beyond.”
He said the first step is to determine where you want to be and ensure everyone in the organisation agrees. Assess your current situation and identify processes for improvement to allow you to become world class.
“The prime objective is to understand those practices which will provide you with a competitive advantage in the marketplace – target setting must be secondary to this,” Dr Camp said.
“Benchmarking is not going to go away, it has been around for about 14 years and is intensifying. But do not benchmark because of poor performance, be proactive constantly striving to be world class.”
