5.3.2 Why and where benchmarking is used

Benchmarking is important, especially when we have to establish a new production line or services.
It is a tool to help us share experiences with leading companies, to assess where we are, how to organise the new (innovative) business, to be competitive, how to improve the business once it starts etc. It is a vital source of data for the decision making process.

Benchmarking is a tool suitable for managers, departmental staff (financial, engineering, R&D, sales etc.), targeting process performance relative to other internal units, direct competitors and other organisations performing similar functional activities.
Benchmarking can also help your organisation to:

  • Obtain an objective assessment of process strengths and weaknesses
  • Seek methods and ideas to stimulate the thinking of internal groups
  • Overcome internal resistance to appropriate change
  • Justify methods, operations or resources in place.