Benchmarking
In benchmarking, you compare yourself to the best-known example of a process, product or service. This example provides a reference point against which to evaluate your own performance. A narrow benchmarking framework may be used to compare organizations that are similar in mission and basic technology. A wider framework, which can be achieved by looking outside your own domain, can also provide important lessons or improved methods that would be missed by looking only at organizations just like yours.
Identifying and selecting the appropriate benchmarks is a critical part of the process. The news media, professional publications, and competitions are good ways to identify possible benchmark candidates.
What is it?
A way to compare yourself to the best. Organizations that develop effective innovations and approaches to a particular problem typically publicize it. Most professional organizations and many publications sponsor annual competitions for best practices and noteworthy innovations. There are also databases of benchmark and best practice information for the public sector.
A way to build consensus, support, and partnerships. Selecting a benchmark also requires consensus and support within your organization. In addition, you may have to establish a partnership with the benchmark organization.
A thorough analysis and understanding of business process. For benchmarking specific technology applications, you need a thorough analysis and clear understanding of the business process and/or product to be evaluated. Without it, the lessons or innovations revealed by using the benchmark may be missed or misapplied.
What is it good for?
Learning how to improve efficiency and performance. The central benefit of good benchmarking is learning how to improve efficiency and performance. Benchmarks achieve their superior performance by innovative, often highly creative ways and offer rich opportunities for learning and gaining new perspectives. These new ideas, perspectives, and techniques can be learned through benchmarking much more efficiently and quickly than by self-study alone, formal research, or evaluation projects.
Taking advantage of other group's investment. By using another organization as a benchmark, you're benefiting from its considerable investments in research, testing, training, and experimentation. Use the knowledge you acquire to help avoid mistakes and achieve higher performance.
Information sharing and collaboration. Benchmarking also involves information sharing and potential for collaboration. The process may start an ongoing exchange of performance ideas and innovation among organizations, a relationship that may result in a partnership that provides greater opportunities for performance improvements.
Getting positive publicity and recognition for participants. Successful benchmarking efforts can also lead to public recognition for the participants. The potential for performance gains can be substantial, resulting in opportunities for increased public support and rewards.
Some limitations and considerations
Once-in-a-lifetime experience. The outstanding performance of the benchmark may be due to special circumstances or factors that you can't replicate.
Can you live up to this standard? The high standards and great success of the benchmark organization can raise unrealistic expectations among your project participants.
Need solid support and good resources. Trying to replicate the success of the benchmark requires political support and consensus within your organization. In addition, you need adequate resources to respond appropriately to the challenges produced by using a benchmark for assessment.
For more information
Andersen, B. and P. Pettersen (1996) The Benchmarking Handbook. London: Chapman & Hall.
Bogan, C. and M. English (1994) Benchmarking for Best Practices: Winning Through Innovative Adaptation. New York: McGraw Hill.
Harrington, H. J. and J. S. Harrington (1996) High Performance Benchmarking: 20 Steps to Success. New York: McGraw Hill.
Keehley, P., S. Medlin, S. MacBride, and L. Longmire (1997) Benchmarking for Best Practices in the Public Sector. San Francisco, CA: Jossey-Bass.
Rocheleau, B. (2000) "Prescriptions for Public-Sector Information Management: A Review, Analysis, and Critique." American Review of Public Administration 30 (4) 414-35.