ACCA memo - Benchmarking

Benchmarking Management 标杆管理
Seven-step approach to benchmarking
The consulting firm Kaiser Associates proposes a seven-step approach to benchmarking as follows:
1. Determine which areas or functions to benchmark. It would probably not be feasible to benchmark all functions at one time, so it is necessary to choose those activities where benchmarking can bring the greatest benefits to the organisation. This may be based on which activities offer the greatest scope for cost savings, or which are ‘key service differentiators’.
2. Identify the performance indicators and performance drivers that will be measured during the benchmarking exercise.
3. Select the organisations that will be used as the benchmark.
4. Measure the performance of the benchmark using the measures identified in step two above.
5. Measure your own performance, and compare it to the benchmark to identify the gaps.
6. Specify actions and programmes to close the gap. This involves analysing how the benchmark achieves superior performance, and identifying similar practices that could be adopted.
7. Implement and monitor the actions and programmes. Monitoring should not be a one-off process, but should continue for a longer period after the benchmarking exercise.
Selecting the benchmark
When choosing the benchmark, we can talk about different types of benchmarking:
·Internal benchmarking uses another organisation within the same organisation. For example, a comparison of the performance of the procurement department of one hospital with the procurement department of another hospital.是指组织以内部流程为标杆所进行的标杆管理，其目标是要找出一个组织内部绩效的标准。
·External functional benchmarking is where a particular function is compared with that function for the organisation that performs that function best, regardless of which industry they are in.它的标杆对象可能是组织的竞争对手，也可能不是，其目的是从一些已经在特定领域树立起卓越声誉的组织中，找到最佳实践典范
·Competitive benchmarking is where a competitor is used as the benchmark. This may not be so common in the public sector.是外部标杆管理的一种，它包括以竞争对手的产品、服务等工作流程为标杆对象的标杆管理，其目的是找出竞争对手的产品、流程及经营成果的特点与优势，在与本组织的类似之处作比较。
When using external functional benchmarking, using a similar organisation in terms of objectives and size can make the process easier. It is not necessary then to take into account differences between the two organisations when comparing their performance, and it should be easier to adopt the practices of the benchmark if they are similar. 
External functional benchmarking can also be performed successfully using out of category organisations – ie organisations that may be have totally different objectives and even different primary activities. Using such benchmarks will make the process more complex, but may provide the opportunity for an organisation to overtake, rather than simply to catch up with comparable organisations. For example, a public sector logistics department could use one of the private sector international courier companies as a benchmark for its logistics.
The most important factor when selecting the benchmark is to identify the ‘best in class’ for the activity or business process being benchmarked.
标杆管理三阶段分别是组织策划、项目实施和持续完善这三个基本但不可或缺的计划与实施阶段。标杆管理是一种通过和该企业最大的竞争者或行业的领导者进行比较，对产品、服务、流程、行动和方法进行持续评价的方法。