Performance Benchmarking

In a Performance Benchmarking (KPI-oriented Benchmarking), a quantitative, comparative and KPI-based evaluation of the company’s own performance or in of its performance in comparison with other organizations takes place. At the end of the day, potentials for improvement should be detected and pointed out.

How does your company benefit from it? 

The analysis of your company’s performance regarding differences to competitors or other departments or business locations reveals your relative position, as well as the difference to the Best Practice and the real potential for improvement. By means of the performance indicators you become able to identify the areas that can be optimized and define actions in a targeted manner in order to close the performance gap. Through Performance Benchmarking your company can inter alia: 

  • Detect precisely the company’s position within the competition,
  • Recognize improvement potentials and define actions for improvement, 
  • Initiate a systematic Best Practice transfer process, 
  • Review your company’s strategy and question its goals setting, and
  • Initiate a continuous process of improvement

Performance Benchmarking for SMEs 

Fraunhofer IPK offers to small and middle enterprises (SMEs) of all industries thwe possibility to access a constantly updated european databased, and so, to run a cost-efficient and time-saving KPI-based Benchmarking: the BenchmarkIndex®. It is composed of KPIs in the finance, client, lernining & development and process perspectives and is, therefore, leaned upon the Balanced Scorecard, so that cause-effect relationships can be examined.
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The BenchmarkIndex® is a key data based database comparison that allows companies to compare themselves with others within their industries, both nationally and at European level. The key figures comparison is grounded on a database developed in the United Kingdom in 1996. Today, it comprises more than 100 thousand data sets of companies from across Europe.

An extensive benchmarking questionnaire is used to query the relevant financial and management ratios of the companies. After validation, the data is anonymized and inserted into the online database of the BenchmarkIndex®. After that, based on pre-defined benchmarking criteria – e.g. Industry Classification, Number of Employees, and annual Sales – from the datasets, companies whose data profile enables a meaningful of key figures comparison are selected.

As a result of the automated comparison process, the participating companies receive a profile of strengths and weaknesses based on their data in the form of a detailed report. The outcomes of the KPI benchmarking enable a feedback on current management and corporate practices and reveal, thereby, both possible problem areas and the existing potentials of a company.

Performance Benchmarking for large enterprises 

We offer large enterprises tailored Benchmarking solutions, leaned upon the individually determined comparison object (department, product groups, locations) and object of analysis (e.g. cost efficiency, productivity, quality). The detailed comparison provides insight about the structure and performance characteristics and can be primarily to form groups of comparison, based e.g. on (industrial) activity, processes and products.  The subsequent formation and assessment can be result can already offer some insights about possible improvement actions. The resulting KPI system should describe the comparison objects in an integrated manner, varying, though, according to the system’s focus. The comparison within your organization will enable you to identify best practices and improvement potentials, define goals and initiate a best practice transfer process.

Sustainability Benchmarking 

In cooperation with the German Federal Association of Small and Middle Enterprises (Bundesverband mittelständische Wirtschaft e.V.), we are currently developing a Benchmarking System to measure, analyse and improve the sustainability performance of SMEs. The Project “Sustainability for small and medium enterprises” is supported by the German Federal Association Environment (Deutsche Bundesstiftung Umwelt).