Custom Search
Custom Search

Wednesday, December 10, 2008


For everything you wanted to know on building leadership and management, refer Shyam Bhatawdekar’s website:

(Refer our High Quality Management Encyclopedia “Management Universe” at:

Objectives of Benchmarking
  • Benchmarking accelerates the rate of change.
  • Identifies breakthrough processes.
  • Results in customer satisfaction and competitive advantage.
  • Creates a fact-based climate for generating consensus.


  • Benchmarking is the process of identifying, understanding and adapting outstanding practices from organizations anywhere in the world to help your organization improve its performance. (Why reinvent the wheel?).
  • Benchmarking is the practice of being humble enough to admit that someone else is better at something and wise enough to try and learn how to match and even surpass them at it.

Benchmarking was initially made popular by Robery C Camp.

Benchmarking Is Not....

  • Only competitive analysis.
  • Number crunching.
  • Site briefings and industrial tourism.
  • Just “copying” or “catch-up”.
  • Spying or espionage.
  • Quick and easy.

What Should Companies Benchmark?

  • Areas of strategic importance.
  • Significant to quality, service, cost or lead time/cycle time.
  • High potential for success.
  • Critical success factors (CSFs) for the organization.

Some Illustrative Examples of What Is Being Benchmarked (Not in any order)

  • Distribution leadership
  • Order fulfillment process
  • Supplier/procurement process
  • Process redesign
  • Dealer/franchise communicating
  • Diversity in hiring
  • Telephone answering centers
  • Employee referral programs
  • HR management alignment
  • Hoteling/shared office space
  • Early product development process
  • Wholesale/retail marketing
  • International sales
  • Third party repair
  • Printed wire assemblies
  • Corporate training/validating
  • Product planning process
  • Sales commission process
  • Direct line delivery/logistics
  • Cost reduction
  • Order management process
  • Suppliers claims process
  • Process re-design
  • Strategic alliances
  • Customer service/hi-tech
  • Closing the books
  • Patent management
  • Communications best practices
  • Preventive maintenance processes

Benchmarking Four Phase Model

  • Plan
  • Collect data
  • Analyze
  • Adapt and improve

Planning Phase

  • Organize the study (select process, team)
  • Collect internal data (flow charts and measures)
  • Perform secondary research
  • Identify benchmarking partners (best in class)
  • Data collection planning (format, due dates, check and balance system)

Collection Phase

  • Prepare and administer questions (survey and telephone)
  • Develop database to tabulate responses
  • Data validation plan for comparability
  • Conduct site visits if needed

Analysis Phase

  • Identify gaps
  • Analyze performance and practice data
  • Identify best practices, methods and enablers
  • Identify enablers in each of the study areas

Adapt and Improve

  • Secure management support
  • Establish long and short term improvement goals
  • Formulate and obtain approval for action plan
  • Track progress of action team
  • Adapt changes, update measurement process, then, as appropriate, recycle the benchmark

Process of Implementation

  • Decide strategic and tactical improvement.
  • Identify what you want to benchmark.
  • Assess your readiness to benchmark.
  • Select teams, owners and champions.
  • Identify appropriate industry leaders in similar or different industries.
  • Conduct benchmarking.
  • Project future performance levels.
  • Report benchmark findings and gain organization acceptance.
  • Prepare the organization to take advantages of benchmarking results.
  • Establish definitive functional goals.
  • Develop action plans for implementation.
  • Activate action plans and monitor progress.
  • Recalibrate benchmarks.
  • Attain leadership position.
  • Integrate processes into company system and continuously improve.

Types of Benchmarking

  • Internal benchmarking (Example: Best scheduling practice at HP)
  • Competitive benchmarking (Example: Team Taurus: Ford Motor Company)
  • Functional benchmarking (Example: General Motor’s cross-industry study)
  • Generic benchmarking (Example: Xerox study)

Benchmarking Myths

  • Benchmark targets should be established first and practices investigated later
  • There is only one way to benchmark: against direct product competitors
  • Benchmarks are only quantitative, financially based statistics
  • Benchmarking investigations are focused solely on operations showing a performance gap
  • Benchmarking is something that needs to be done occasionally and can be accomplished quickly
  • There is a single company somewhere, most like our firm, only much better, that is the “benchmark”.
  • Staff organization cannot be benchmarked
  • Benchmarking is a target-setting stretch exercise
  • Benchmarking can most effectively be accomplished through third party consultants
  • It is difficult to decide what to benchmark for each business unit
  • Processes don't need to be benchmarked
  • Internal benchmarking between departments and divisions has only minimal benefits
  • There is no benefit in qualitative benchmarking
  • Benchmarking is comparing our firm to the dominant industry firm and emulating them six months later

For More Guidance, Assistance, Training and Consultation


Training on "Benchmarking" is imparted by Prodcons Group's Mr Shyam Bhatawdekar and/or Dr (Mrs) Kalpana Bhatawdekar, the renowned management educationists and consultants with distinction of having trained over 150,000 people from around 250 organizations. Implementation is also facilitated by the team of Prodcons Group.

Also refer: (Prodcons Group), (Training Programs by Prodcons Group), (Productivity Consultants)

Other Topics of Interest

All Management Topics (General Management, Marketing and Sales, Service, Operations/Manufacturing, Quality, Maintenance, Human Resources, Finance and Accounts, Information Technology, Life Management)

The topics are listed in alphabetic order:

(Home Pages for All the Management Topics) and
(Building Leadership and Management)
(Alphabetic List of All Management Topics)
(Home Page for Writings of Shyam Bhatawdekar)
(5S Housekeeping)
(Activity Based Costing- ABC)
(Anger Management)
(Assessment Centers)
(A to Z of Management Systems)
(A to Z of Quality Techniques)
(Balanced Scorecard)
(Basic Statistics)
(Behavioral Safety)
(Body Language or Non-verbal Communication)
(Books- Best Management Books)
(Business Ethics and Ethics in Management)
(Business Plan)
(Business Process Reengineering- BPR)
(Career Planning within Organizations)
(Case Method)
(Case Studies in Management)
(CEO Roles, Qualities and Competencies)
(Change Management)
(Competencies- Life Management)
(Competency Matrix)
(Conflict Management)
(Corporate Governance)
(Cost Management)
(Cost of Quality- COQ)
(Counseling at Workplace)
(Creativity and Innovation)
(Critical Thinking skills)
(Cross Cultural Etiquette and Manners)
(Customer Orientation)
(Customer Relationship management- CRM)
(Daily Management)
(Decision Making)
(Design for Manufacture)
(Dining Etiquette and Table Manners)
(Discipline at Work)
(Do This Today)
(Dream Exotic)
(Effectiveness and Efficiency)
(Effectiveness Management: HSoftware)
(Efficiency Techniques: Work study: Motion and Time Study)
(Efficient Work Methods or Practices)
(Email Etiquette)
(Emotional Intelligence)
(Enterprise Resource Planning- ERP)
(Entrepreneurship and Entrepreneur)
(Executive Etiquette and Manners)
(Exit Interview)
(Financial Ratios and Financial Ratio Analysis)
(Financial Services)
(Functions of Management)
(Gemba Kaizen)
(Genuine Professional)
(Global Mindset)
(Goal/Target Setting)
(Group Discussion)
(Group Dynamics)
(How to Be a Good Boss)
(How to Get Promoted)
(How to save Money)
(HR Dynamics)
(HR Strategies and Functions)
(Human Capital Architecture)
(Human Relations)
(Human Resource Planning)
(Human Software- HSoftware)
(Internal Motivation or Self Motivation)
(Interpersonal Relations)
(Interview Skills)
(Interview Preparation for Job Seekers)
(Interview Questions)
(Just in Time Management- JIT)
(Knowledge Management)
(Lead Time Management)
(Lean Enterprise)
(Learning Organization)
(Life Management: Competencies)
(Life Management: Effectiveness Management: HSoftware)
(Life Management: I Am Liberated)
(Life Positions and OKness)
(Life Skills)
(Management Anecdotes)
(Management Book- Best Books)
(Management Information System- MIS)
(Managing/conducting Meetings)
(Management Notes- Free and Authentic)
(Marginal Utility)
(Marketing Management Overview)
(Marketing Management Tasks)
(Marketing Orientation)
(Market Research)
(Market Segmentation)
(Musings of Shyam Bhatawdekar on every topic on the earth)
(Negotiation Skills)
(Negotiation Tactics)
(Objection Handling)
(Organization Development- OD)
(Organizational Culture)
(Out of Box Ideas)
(Ownership on Job)
(Paradigm and Paradigm Shift)
(Performance Management and Appraisal)
(Positive Strokes)
(Presentation Skills)
(Problem Solving)
(Profit Improvement)
(Project Management)
(Public Speaking)
(Quality Circles History)
(Quality Circles)
(Quality Function Deployment- QFD and House of Quality)
(Quality Gurus)
(Recession Management)
(Recession and Opportunities)
(Recruitment and Selection)
(Research Methodology)
(Safety and Health Management)
(Sales/Selling Process)
(Sales Promotion)
(Self Motivation or Internal Motivation)
(Self Development)
(Shyam Bhatawdekar’s Articles on Management)
(Six Sigma)
(Six Thinking Hats)
(Soft Skills)
(Spiritual Quotient/Intelligence)
(Statistics- Basic)
(Strategic Management)
(Stress Management)
(Stress Management)
(Success in Life or Success)
(Success in Life or Success)
(Supply Chain Management)
(Supply and Demand)
(Talent Management)
(Team Building)
(Telephone Etiquette)
(Three Sixty Degrees Appraisal System)
(Time Management)
(Total Productive Maintenance- TPM)
(Total Quality Management- TQM)
(Training and Development)
(Trainers’ Qualities)
(Transaction Analysis- TA)
(TRIZ- Inventive Problem Solving)
(Value Engineering/Analysis)
(Winners and Losers)
(Work Study: Method Study and Work Measurement)
(Work Methods or Practices: Efficient)
(World Class Manufacturing)
(Writings of Shyam Bhatawdekar on Management)
(Written Communication)
(Zero Based Budgeting)

Counseling: General and Psychological
(Anger Management)
(Children’s Behavior Problems)
(Cholesterol Control)
(Counseling: Psychological)
(Counseling: Psychological)
(Cross Cultural Etiquette)
(Do This Today)
(Executive Etiquette and Manners)
(Family Counseling)
(Health: Homeopathy)
(LifeManagement: Competencies)
(Life Management: Effectiveness Management: HSoftware)
(Life management: I Am Liberated)
(Marriage Counseling)
(Ownership on Job)
(Parental Responsibilities)
(Qualities of Spouse)
(Quit Smoking)
(Self Development)
(Spiritual Quotient/Intelligence)
(Stress Management)
(Stress Management)
(Success in Life or Success)
(Success in Life or Success)
(Swine Flu and Its Prevention)
(Telephone Etiquette)
(Winners and Losers)

About All the Products
(Home Page for All Products)
(Greeting Cards)
(Mobile Phones)

Home Tips
(Home Page for All Home Tips)
(Do This Today)
(Entertainment: Movies)
(Oscar Award Movies)
(Entertainment: Recommended Hindi Movies)
(Entertainment- Hindi Movies of Your Choice)
(Plagiarized, Copied or Inspired Hindi Movies)
(Health: Homeopathy)
(Housekeeping at Home)
(How to Save Money) or
(Jewelry Design)
(Recipes: Easy to Cook)
(Recipes: Exotic)
(Stories for Children)
(Travel and Sightseeing- India)
(Travel and Sightseeing- World)
(World Heritage Sites)

General Knowledge and Out of Box Ideas
(General Knowledge- GK)
(General Knowledge- Top 5 of Everything)
(General Knowledge- Top 10 of Everything)
(Out of Box Ideas)
(Shyam Bhatawdekar’s Knols)
(Running Commentary on the Run)