WHY COMPANIES NEED BENCHMARKING
Benchmarking promotes the climate for change:
Xerox example in the late 1970’s; They were losing market share to their Japanese competitors.
Not only were the Japanese products excellent, but very surprisingly for Xerox, these products are sold cheaper than Xerox could manufacture them!
Almost all of the Fortune 500 firms are benchmarking, and based on comments from managers at many of these companies, the process is achieving the desired result, which is increased competitiveness for their companies.
Inclusion of benchmarking among the application guidelines of the Malcolm BALDRIGE National Quality Award makes benchmarking a requirement for all companies that are serious about improving their competitiveness through quality.
Benchmarking provides organizations with a focus on the external environment and an emphasis on increasing process efficiency. In the preset climate of dynamic change and fiercely competitive markets both of these are essential for survival.
So what?
Why should we use benchmarking?
Because it contributes much to the success of the company, that’s why.
Applying the logic of two heads being better than one to solving business problems, the accumulated knowledge of two, three, four, or a half-dozen organizations to solve a particular issue of one must be better than that single organization solving it alone.