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Benchmarking – what is it?

Benchmarking – what is it?

Benchmarking is a new fashionable word in administrative circles. this concept concern for the present with watchfulness, being afraid, that the concept benchmarkinga covers industrial investigation. Actually a difference between two these methods the basic. Benchmarking — a method of studying of another's experience which is not secret behind seven seals.

For the first time this method has been developed in 1972 for an estimation of efficiency of business by Institute of strategic planning in Cambridge (USA). For the first time purposefully to use benchmarking there has begun company Rank Xerox at the moment of the hardest crisis in 1979 for the analysis of expenses and quality of own products in comparison with the Japanese products. The term "benchmarking" has occurred from an English word benchmark ("reference mark", "notch"). In most general sense benchmark is something possessing certain quantity, quality and ability to be used as the standard at comparison with other subjects.

The purpose benchmarkinga is the business finding, at which business go better, than at you. But it is not enough of it: after a finding of the best way of management and business management, you still should find independently the answer to a question how to make it better?.

Actually benchmarking is an alternative method of strategic planning in which tasks are defined not from reached, and on the basis of the analysis of indicators of competitors. The technology benchmarkinga pulls together working out of strategy, the branch analysis and the analysis of competitors in uniform system.

The reasons of today's popularity benchmarkinga in the world:

1. A global competition. Today, during an epoch of globalisation of business, the company realise necessity of all-round and detailed studying and subsequent use of the best achievements of competitors with a view of own survival.

2. Compensation for quality. Last years the increasing distribution is received by campaigns passing at national level for definition and compensation of firms — leaders of quality. Conditions of participation in similar programs assume, besides demonstration by the companies-participants of competitive advantages of products let out by them, obligatory application of the concept benchmarkinga in practice of management by the company.

3. Necessity of universal adaptation and use of world achievements in the field of industrial and business technologies. Not to remain behind the competitors, to all companies, irrespective of the size and a field of activity, it is necessary to study and apply constantly the best practices in the field of industrial and business technologies.

Application benchmarkinga consists in four consecutive actions:

1. Understanding of details of own business processes.

2. The analysis of business processes of other companies.

3. Comparison of results of the processes with results of the analyzed companies.

4. Introduction of necessary changes for separation reduction.

Negative barriers of use benchmarkinga:

1. Opacity of an inhabitancy of the enterprises.

2. Inaccessibility of the open information to comparison and an exchange of experience.

3. Backwardness of an infrastructure benchmarkinga.

4. Absence of "clubs" for search of partners on benchmarkingu what already to speak programs financed by the state benchmarkinga.

In Japan, the USA and other countries of the program benchmarkinga develop at the state support. It is considered, that thanks to such exchange of experience the national economy as a whole wins.