What is external benchmarking?
External benchmarking is a way of measuring performance against the external standard. In general, benchmarking is used to ensure that a particular business or part of its operations works at a level that meets the goals set by internal or external proven procedures. When benchmarking is looking for external proven procedures, it uses industry standards or performance standards set by the leading industry as instructions for internal performance.
business operations are a system of related but different processes. The aim of the management is usually to integrate these processes and at the same time ensure that each process meets quality and efficiency standards. Internal standards are often based on corporate culture or can reflect the personal work ethics of the owner or manager. Internal standards are often determined by reference to the profitability by setting goals and evaluating success, depending on how incremental changes affect the lower limit.
Another way to measure business performance for proven postupy. Most industries are studied by analysts, academics and researchers to identify the best ways of operation. These proven procedures are the result of a comparative study of results between industry participants over time. Proven procedures are external standards that companies can measure their own performance.
When the company uses external benchmarking to measure its performance, it can refer to industrial standards, as reflected in proven procedures or specific standards set by the market leader. For example, a company that evaluates its customer service can use the company in its sector, which consistently receives the highest signs of customer services in independent studies. It would use the results that the leading company was able to achieve as benchmarks for its own department and staff.
To ensure the relevance of external benchmarking must choose the companyBating to get a standard. This can sometimes be difficult, because every society is driven by unique forces that cannot be precisely duplicated. One of these unique forces is talent. For example, standards set by a uniquely talented staff may not only be available by a small talent available by the company with a unique talented staff.
If the company controls the unique factors that distort the results, external benchmarking can be an important part of strategic planning. The goals are controlled by performance and external benchmarking uses natural competitive forces to encourage employees to achieve and exceed the standards set by others. In a real way, external benchmarking contributes to the innovations and the desire of the company to do more with available resources, although these sources are less than what is available to the leaders in the field.