Benchmarking is a process of evaluating products, services, and work processes of organizations that are recognized as representing best practices, for the purpose of organizational improvement (Spendolini, 1992). The process of undertaking systematic comparison between organisations, and making improvements based on those comparisons is generally regarded as originating in the Xerox Corporation’s efforts, in the late 1970s, to reinvent itself in the face of competition in a market segment that it had hitherto dominated (see for example: Elmuti & Kathawala, 1997; Ford, 1993). Other influences cited as significant in the development of the concept of benchmarking include the quality assurance movement and just-in-time manufacturing methods (Longbottom, 2000).

Benchmarking – what and why?

Benchmarking is essentially concerned with understanding how processes work – through observing and studying work methods and practices and then identifying good or best practice. Benchmarking seeks to learn from the observation of such good and best practice, and to make improvements necessary to reach identified standards of good/best practice. Assessment of improvement is based on review and comparison with other like organisations. (Elmuti & Kathawala, 1997; Longbottom, 2000). While there are many variant models for the practical application of benchmarking principles four elements are common (Longbottom, 2000). These are:

• Planning - investigation, measurement and examination of the strengths and weaknesses of current processes;
• Analysis – identifying potential benchmarking partners and then exchanging information, and observing and comparing processes;
• Implementation – adaptation and modification of processes based on learning from the analysis stage;
• Review – ongoing review and refinement with the intention of achieving continuous improvements;