Topic > The Pros and Cons of Benchmarking - 1886

According to Keith Sisson, the practice of benchmarking or “continuous improvement” was first introduced in the 1950s by Toyota. Benchmarking is the process used by organizations to improve specific processes within the organization. Benchmarking focuses on achieving “best practice” for the company and not measuring based on maximum performance. Benchmarking is done by obtaining information from one organization and improving that information for use in another organization within the same market. The two main types of benchmarking are internal and external. Internal benchmarking compares practices and performance between teams, individuals or groups within the organization. External benchmarking compares organizational performance across industries. Benchmarking helps companies better understand their type of industry as they are able to compare the techniques used by competing companies and improve them to make them more efficient for the company. “Benchmarking is a management technique aimed at identifying “best practices” in other organizations and then adopting them in your own.” Benchmarking. (2011). Internal benchmarking is the process of searching within your own company for potential process improvements, internals do not compare one company to another. Internal benchmarking reduces the time and money a company spends investigating other companies. Internal benchmarking allows for an easier transition for employees because they are able to adapt and adopt better practices as they improve the processes they currently use. Internal best practices can be recognized in large organizations and medium-sized companies that have several divisions, business units and warehouses. When companies look with...... middle of paper......GALE%7CCX2343700056&v=2.1&u=vic_liberty&it=r&p=GVRL&sw=w&asid=9b1ac1b4ed62019afc21ea86a61fb3bb5. Vitasek, K. (2006). Four steps to internal benchmarking. Multichannel Merchant, 23(11), 77. Retrieved from http://search.proquest.com/docview/195883197?accountid=120856. Benchmarking best practices versus competitive benchmarking. (2005). Financial Executive, 21(6), 58. Retrieved from http://search.proquest.com/docview/208904536?accountid=120857. McDonald's Canada introduces vegetarian wraps (2013). . Toronto: CTV Television, Inc. Retrieved from http://search.proquest.com/docview/1429780138?accountid=120858. Waitz, M. L. (2005, 05). Benchmarking basics. Construction Bulletin, 290, 4. Retrieved from http://search.proquest.com/docview/235796232?accountid=120859. Boxwell, Robert, J., Jr. (1994). Benchmarking for competitive advantage. New York: McGraw-Hill. ISBN 0-07-006899-2.