Benchmarking for your Business
One of that important thing to do is to go benchmarking for your business. This would help you in creating major decisions for your entrepreneurial journey. A lot of people would want to have a business of their own, but only a few are brave enough to take the risk. All you need is to always take caution and be one step ahead of your business.
What is Benchmarking?
In the business perspective, it is basically obtaining some measures and studying not just your competition’s facilities and processes but as well as different industry. At this point, it is important to take note of best practices and processes for your company’s advantage. This tool would aid you on how you could improve and sustain the company. Basically, the benchmarking process is focused on the current reality of a certain organization.
Types of Benchmarking
There are many ways to conduct benchmarking for your business among these are Internal, Technical, Competitive, and Strategic.
Internal Benchmarking basically looks at the internal processes and practices throughout the different areas of their own company. IT measures the efficiency of systems and processes. This continuous approach leads to improvement in the structure of the company and fill in any gaps to get things done.
Technical Benchmarking is a technique used to test your product and compare it to several relative products based on technical criteria. This type of benchmarking is expected to be implemented during System Development, Proposal Preparation or Product selection.
Competitive Benchmarking is a process of comparing a company’s practices and processes with the company’s competition.
Strategic Benchmarking is all about comparing your strategic performance with that of leading companies. You can use strategic benchmarking to develop a system of best practices that your company could use.
You need to be clear with your objective before you engage in any type of benchmarking and why are you conducting this process. Establish your Key performance Indicator (KPI) first to measure your company’s improvement. See what is working and what is not.
Benchmarking should be a continuous process and should be part of the company’s tool for a sustainable business. In my previous article, on Knowing your Market and their Needs, I mentioned about some key questions to ask yourself in identifying your market. The same goes for benchmarking, here are some few more points you need to note when you conduct benchmarking:
- What are you Benchmarking for? There are various areas in your business that you can do benchmarking which one would you focus on benchmarking on?
- Why are you benchmarking the said area of your business?
- Who are your Drivers? This could be random employees that would be used in determining the metric that you are benchmarking for.
- How would you measure these drivers? Do you have KPIs?
- What is your company’s current situation?
- Who are the companies or organization you are benchmarking against?