Is benchmarking just another fad or is it really useful for

Is benchmarking just another fad or is it really useful for all firms? Is there any particular firm or organization you think will be better suited for benchmarking? If so, which type of firm or organization? If not, why? Explain your answer in your own words.

Solution

Benchmarking is an improvement process in which one company sets a standard for itself by comparing with the best company in the industry. It is about gathering information about the best company and trying to achieve it. The standards can be set in many dimensions like quality, quantity, process, strategies, technology, cost, productivity, market share, sales growth etc. In this method, the company targets to reach the ultimate target by improvements and following best practices.

In my views, benchmarking is not a fad, but it is a good initiative by the companies to meet the requirements. It enhances productivity being a strategic tool and increases the growth potential by assessing the typical strategies of different companies. It is best suited for companies who are involved in developing new products, research, and development, enhancing customer services, BPOs etc. In this process, one can adopt, adapt the new technique and improve its services. For example, it will best work for customer service organizations. By following the customer satisfaction model or grievance handling model of 24x7, many customer support organizations can improve their standard. The business model of 24x7 will be treated as a standard as it has got minimum number of customer complaints and high customer satisfaction. This will improve the company\'s productivity and efficiency.