Part 3 - Benchmarking

Question 1

Definition of benmarking

Answer 1

Benchmarking involves gathering data about TARGETS and COMPARATORS such that CURRENT LEVEL OF PERFORMANCE (especially underperformance) can be identified and evaluated against BEST PRACTICE.

Question 2

Internal benchmarking

Answer 2

• Comparing divisions within the same organisation
• Ad: obtain detailed operational information and so to share best practice amongst the divisions
• Dis: non-financial data less robust than the financial systems, not identify world-beating performance and competitor performance

Question 3

External (or competitor) benchmarking

Answer 3

• Comparison is drawn with competitors
• Ad: identify competitive advantage and also areas for improvement with a similar business
• Dis: not identify how to gain advantage over these rivals, the difficulty with this method is obtaining the information

Question 4

Functional benchmarking

Answer 4

• Benchmarking with a world-class company from another business sector
• Ad: share detailed operational data without the worry of loss of confidential information directly to a competitor
• Dis: translating lessons learned from one industry to another, so it is often done for generic activities

Question 5

Phương pháp đánh giá benchmarking

Answer 5

• Chia nhỏ objectives của company và xem đã có các metrics tương ứng để đo lường chưa
• Đi từng chỉ số: giải thích ý nghĩa và so sánh => Solutions