Effective Benchmarking Ideas
Benchmarking is a process of setting KPI figures against competitive internal and external goals, this might be benchmarking against your competitors or against different businesses either in or outside your business.
Here are a few tips to set up the benchmarking process for your organization.
You can follow these steps in your global organization:
1. Select KPI: KPIs that gauge each organizational goal is developed.
2. Select Benchmarking Targets: Allows the organization to set either internal or external benchmarks.
3. Collect Data: Data collection at all levels, department, unit, a team so can construct a comparative analysis.
4. Analyze Data against Benchmarks: Data is analyzed against the targets and benchmarks your organization has set.
5. Improve Strategies: Analyze data then gather and give feedback to management, staff to evaluate objectives.
What is the RIGHT KPIs for your company how do you choose?
Choosing the right KPIs for your company and its departments is the major challenge for setting up benchmarking. Many individuals mistake data collected by an organization frequently for KPIs. Sometimes they are but most likely they are not.
An idea so you can choose the right KPI to benchmark is to use the acronym SMART:
Specific - KPIs have to be specific to the organizational goal. For example, quantifying customer satisfaction can be through frequent surveys.
Measurable - KPIs must be measurable, less on narrative and more on observable, quantifiable measures.
Achievable - KPIs have to be achievable within a realistic time frame and budget.
Relevant - KPIs must be relevant to the activities of the department, team, unit and the skills of the employees.
Timely - KPIs are designed to guide management decisions and their success, they have to do frequently.
Remember the most important thing that you are trying to accomplish for the organization is to provide management with the feedback it needs to monitor and improve organizational processes.