Definition of benchmark, benchmarking, performance indicators, strategic decisions, leadership, business sustainability, turnover, self-analysis, data collection, productivity, competitiveness
Developed in the 1980s, benchmarking is a practice regularly used by companies, in particular, large groups who want to measure the performance of their products or processes compared to their competitors. It is a tool for achieving many objectives, such as obtaining or maintaining a leading position in the market or even identifying opportunities for improvement, externally, but also internally. It is enough simply to obtain sufficient information about the selected benchmark companies and access the best methods that will allow the company concerned to achieve a high level of performance in the medium and long term.
[...] For information gathering, the competitive benchmark is a more complicated operation than the generic or functional benchmark, which consists of comparing the same functions, without competition, within the same industry. In reality, unlike the competitive benchmark, which is based on a comparison with companies in direct competition, the generic and functional benchmark is based on the establishment of a partnership. This is why collecting information is easier because it is a collaborative exchange of information. This way the sources will be safe and precise. [...]
[...] Whether it is a product placement in relation to the market, or to a working method, it all starts with defining a goal to achieve so that you don't waste your time. To avoid this, it is necessary to collect the performance indicators and try to determine which ones will help the most to carry out a relevant analysis. These must be chosen according to the problem identified. It is about identifying the indicators that correspond to what you want to benchmark. Then format it in a graph or table. [...]
[...] In terms of competitive benchmarking, collaborative information exchange is more complex. It is preferable to select other sources for collecting information such as the press, customer reviews (telephone survey, satisfaction questionnaire), LinkedIn, official company publications and the figures collected. It will, therefore, be necessary to be satisfied with open-access information. D. Fourth step: analyze the data The aim is to classify the data collected about the benchmark companies and analyze the results in order to establish an action plan. The quantified data previously collected from competing and non-competing companies must be put in the form of charts and Excel tables. [...]
[...] The more precisely the objectives and the duration are presented, the easier it will be for teams to understand them. In addition, after having put in place the action plan, it will be necessary to ensure that the deadlines and the objectives are met. It's how quickly a company gets things done that will make the difference between it and other companies. Businesses are constantly evolving and keep improving. It is, therefore, preferable to start all the steps again in order to stay in the game. [...]
[...] Competitive: This process is used in the event of the competition and consists of analyzing and comparing methods, processes and products with those of competing companies, companies similar in terms of industry or turnover, or with the market leaders. This is the most complicated type of benchmark to manage, as information on the processes of benchmark companies is little disclosed. Functional: This consists of identifying and comparing the processes related to companies that do not operate in the same industry. The goal is to identify the performance of a company by analyzing its functions in relation to other companies. The idea is to get relevant information without presenting yourself as a direct competitor to the benchmark company. [...]
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