Benchmarking is the search for solutions based on industry best practices and best practices that lead a company to excellence
This definition by the founder of the benchmarking methodology accurately describes the core idea of this modern management tool. The constant search for the utilization of potentials are, under the tougher market conditions, are key success factors of for the competitiveness and survivability of companies that compete national and internationally oriented for new ideas for methods.
Benchmarking helps at finding, systematically and resolutely, new ideas for methods, processes and procedures outside its own organization or company or outside its own industry. Benchmarking aims at the analogical thinking and the innovation strength of organizations. It is a tool that support other instruments (e.g. Reengineering, Total Quality Management or Kaizen/KVP), contributing to the accomplishment of corporate goals. Unlike other instruments that disclosure simply an internal view of things, benchmarking innovates with its external approach.
Though, the focus of benchmarking isn’t simply exposing differences from other companies. It is rather to systematically identify best practices, with which competitive advantages can be provided.
Benchmarking has a much longer tradition in the USA than it has in Germany. But also in Gemany has this still young management method continuously established itself. Since the foundation of the IZB in 1994 and of the Global Benchmarking Network in 1995, a continually increasing interest on benchmarking can be observed internationally.
The flexible applications, ranging from the optimization of business processes through to support on company’s strategical questions make benchmarking so successful.