PRINCIPES OPÉRATIONNELS - MATURITÉ
The benchmark is an analysis that compares the performance and qualities of a producti, a service, a fonction or an organisation with what we can find as the best solution on the market.
The benchmark of a process is focusing on compairing the practices of a company with the best practices we can find on the market.
The benchmark is build on the principle of a comparative
analysis of an item whith the best item one can find on the market. For example,
the catalog of a toys retailer is compare with the catalog of the best known
toys retailers. The menu of a restaurant is compare with the best menus one can
find in the same category.
To be useful, it is important to focus the benchmark on
difficult issues or problems. For example, a benchmark is useful when apply
on a product line with some very low sales figures or about a process
with a lot of defects ( return packages, to many customers on the hot
Different types of benchmarks :
The benchmark can be performed for all
types of comparison. The main types of benchmark are :
Benchmark of a product or a service
We compare the products or the services from by
differents competitors on a same market. Functions, reliability, usage,
attractiveness, price/quality are compared and classified. The consumers groups
are regularly publishing results of comparisons between products or services
proposed to the consumer market.
In this case, we compare the
qualities or the performance of process, products or activities among different
locations or entities of the same company. It is often comparisons between
different geographical locations or comparisons of the performance from one year
to the other (historical).
Benchmark of function or process
It is an external benchmark between functions or process,
identical or similar (HR, accounting, purchasing...) but involving different
types of companies not competing on the same market. As an example of function,
we have a day off procedure or a recruting activity and as a process, we have
the Human Resource Management or hte Purchases management.
Benchmark of performance :
We compare, between competitors, the performance of a
marketing offer with revenues and profits. For the processes, the
comparison is about the resources that has been used and "burned"
to deliver the output. The performance is about efficiency and
effectiveness. This analysis is the first step to costs performance
evaluation of a process.
The benchmark is performed for process or
functions between different competitors on a same market. Usually, non strategic
domains are compared between competitors such as purchasing or accounting but
one can compare also more strategic assets.
Benchmark of audits :
In this type of benchmark, the results of the audits from
different parties on the same market are gathered and general tendencies are
spotlighted. These results are then disclosed to the different partners who
brought the initial audit informations.
Benchmark and costs management :
Benchmark has always been applied to economic and financial
analysis. These are benchmark of costs, profit center and capital financial
yield. To perform such benchmark, the accounting departement are establishing a
dedicated accounting model for the purpose of the benchmark in order to
neutralize all fiscal or amortization choices.
Costs management is the next step : the benchmark is used in a
continuous mode in order to bring the correct data for process improvement and
costs reduction. This os cost continuous improvement or Kaizen
Benchmark, Partners of a benchmark and confidential
The data that are used in the benchmark model
are coming from companies that compete each others. Collecting the data is a
critical issue because confidentiality must be garantee to all participants and
the finest way to handle it is that a third party performs the collection,
analyse the results and communicate on the results. These results are general
information with no confidential area.
Advantages of a benchmark
|Best practices deployment to
strenghen the weak points|
|Planification of an
improvement process from the results of the benchmark|
A rigorous approach for costs management
and costs cutting
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