Principles of using benchmarking

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Use the following principles to do benchmarking right.

Reciprocity
When exchanging information with a partner, it is necessary to provide true data. In internal benchmarking, it is important that all employees are ready to interact, that there is open exchange of information, and that they are focused on common goals.

Analogy
Comparison and analysis should only be done for similar products and processes. Companies may not be direct competitors, but they must have similar processes.

Measurement
Benchmarks must have measurable parameters - this is the only way to compare them. Before benchmarking, you need to identify the key characteristics that you will analyze and create a plan with evaluation parameters.

Reliability
Benchmarking should be carried out only on the basis of factual, documented information. Using approximate data and conclusions will not give an objective result.

Benchmarking stages
Preparation
Determine the indicators by which benchmarking will be conducted. Study the company and write down problems or wishes for development. The indicators should be:

minimal, but sufficient - so as not to overload the analysis, but to make it clear;
stable and complete - to reflect the dynamics over time.
Set the criteria: planned, minimum, maximum, calculated values ​​and benchmark.

Indicator Planned value Minimum value Maximum value Calculated value The Importance of a Benchmark Company
Return on sales
Buyer Profitability
Net Profit Share
Select a company or your own division whose indicators will be the benchmark. To do this, it is advisable to conduct a market analysis, get acquainted with open statistics, reports, surveys and publications. Before starting benchmarking, it is worth concluding a cooperation agreement with a non-disclosure clause to the outside in order to exchange data freely.

Analysis
Select benchmarking tools and evaluation criteria. Most often, companies what makes overseas chinese in australia data valuable asset analyze the quality and cost of products, the speed and efficiency of production processes, the costs of promotion and sales, and the level of satisfaction of the target audience.

Try to determine what factors helped the company being analyzed achieve the result.

Implementation
After benchmarking, study the data obtained and draw up a development strategy. Determine which indicators can be improved, how to use the experience of a reference company. This will allow you to write down the goals and structure of the plan, new requirements and standards, and forecast the costs of implementing the strategy.

After implementing the changes, compare the results obtained with the planned ones.