Chapter 3: Benchmarking

OVERVIEW

Benchmarking is a tool, a technique or process, a philosophy, and a new name for old practices. It involves operations research and management science for determining (a) what to do or "goal setting" and (b) how to do it or "action plan identification."

Benchmarking can be applied (a) systematically and comprehensively or (b) ad hoc project by project. In both cases it can require (a) sophisticated statistical analysis, (b) utilization of a wide variety of analytical tools, and (c) a wide range of data sources. The basic requirements for success are:

• Time, effort, and resources

• A willingness to learn and to change

• Continuing, long- term top management support

• An external focus on customers and competitors

• A common-sense approach and active listening

• The ability to look at the old in a new way