Benchmarking: The Best Tool for Measuring Competitiveness

Argues that benchmarking is much more fundamental to strategic thinking than other tools relied upon thus far by senior managers in their decision-making processes. Argues that for benchmarking to be effective it has to be closely linked to total quality management programmes in place. Strongly recommends that the focal point has to be on understanding process and behaviour (i.e. the means/enablers) before asking questions about results (i.e. the outcomes). Unless such a discipline is established, results can only be considered as absolutes and as such are not useful in telling us why differences take place. Benchmarking works inwards by helping organizations set desired goals and objectives and set about achieving them through continuous improvement activities. Proposes an implementation strategy for benchmarking based on 16 steps. In addition highlights some factors which are considered to be critical if the practice of benchmarking is to lead to any results. Provides some guidelines on ensuring that benchmarking remains a powerful strategic tool.