Hagan School of Business

Starting a Benchmarking Process

Although benchmarking is not difficult, a great amount of thought, internal study, and research must be conducted before embarking on a benchmarking effort (Brigham, 1995). In Belmot University’s Quality Team Manual on Benchmarking (1993), seven points are listed for consideration before beginning to benchmark and are paraphrased as follows:

1. Is there already a focus in your work area or department around service, employees, and continuous improvement of processes?

2. Is benchmarking the right strategy in this situation? (According to the International Quality Study, world-class benchmarking is only suitable for already high-performing organizations. Competitive or peer benchmarking is more appropriate for low or medium performing organizations)

3. What should you benchmark? Choose those processes that align with the organizational mission and contribute to the organization’s long-term success.

4. What should you measure? You are attempting to generate comparative performance data; as well, you are observing how they achieved those results.

5. What organization(s) should you benchmark? The ideal one would have a higher performance level than you do in the specific area being benchmarked.

6. How should you collect data? First establish internal baseline performance measures. Then be creative for tracking down other sources of data.

7. How can you implement what you learned? Determine the variances between your processes and those benchmarked. Separate out, if necessary unique factors to the benchmarked organization. Then, develop a mission statement for the process, set clear goals and action plans. (Brigham, 1995)

Belmont University’s seven points are sound, and reflect the original definition and intent of benchmarking. Benchmarking efforts that are undertaken too quickly, or conducted in a top-down approach from the senior administration level with little or no input from mid-level users of the data, often do not realize how important it is to properly plan what to benchmark, against whom, how to collect the data, and how to analyze and use the results. However, one important element missing is the selection of s) who in the organization will actually conduct the benchmarking project. Most of the literature reviewed recommends the creation of a benchmarking team, especially if the benchmarking project is not to be primarily conducted by a professional association or data-sharing consortium.

Spendolini (1992) states that there are indeed some explicit qualifications for benchmarking team members that should be considered before beginning the project. Some organizations may be restricted by size in the choices they can make, but it is still wise to consider these attributes and therefore maximize the effectiveness of the team (or committee) choices that are available. The first specific characteristic recommended is functional expertise and demonstrated level of job skills or work-related performance in the position they hold at the institution. Second, the employee should have sufficient credibility in the institution, as judged by subject-matter knowledge, employment history, and the level of position(s) held. Benchmarking team members should also have above average communication skills, in order to communicate well with other team members and the benchmark project partners at other organizations. Lastly, Spendolini recommends that effective benchmarkers need to have a high level of team spirit, including a sense of cooperation, effective listening skills, an ability to reach a consensus, and respect for the opinions of others. Dale (1995) adds that the "perfect" team member will be implementing changes, is hands-on, action oriented, has nothing else to do, is a super salesperson, is creative and flexible. The optimal team size according to Dale is five members, who are from multiple disciplines and personalities.

Once the team is selected, the next step should be the selection of the topic(s) for the benchmarking study.

Brigham, S. (1995). Benchmarking . HEPROC CQI-L Archive: American Association for Higher Education.

Dale, B. (1995, October 30 & 31, 1995). Practical Benchmarking for Colleges and Universities. Paper presented at the AAHE Workshop, Key Biscayne, Florida.

Spendolini, M. J. (1992). The Benchmarking Book. New York: AMACOM.