1 Is benchmarking just another fad or is it really useful fo

1.      Is benchmarking just another fad or is it really useful for all firms? Why?

Solution

Benchmarking is the process of comparing one\'s business processes and performance metrics to industry bests or best practices from other companies. Benchmarking can be internal (comparing performance between different groups or teams within an organization) or external (comparing performance with companies in a specific industry or across industries).

According to Camp (1989), Benchmarking is the continuous process of measuring products, services and practices against the toughest competitors or those companies recognised as industry leader.

According to Cook (1995), Benchmarking is a kind of performance improvement process by identifying, understanding and adopting outstanding practices from within the same organisation or from other business.

Benchmarking is really useful for all firms because :

1. helps organisation to understand strength and weakness.

2. helps to better satisfy the customer needs by establishing new standards and goal.

3. help organisation to improve their competitive advantage.

4. motivate employees to reach new standards and to be keen on new developement.

5. allows organistions to realise what level of performance is really possible by looking at others.

6. will provide your company with an outlook to strive towards and hope to achieve.

7. able to find companies that have similar processes that you do to use their information to improve your company and its practices.