Page 27 - APM Integrated Workbook STUDENT S18-J19
P. 27
Introduction to strategic management accounting
Benchmarking performance
Benchmarking aims to understand and evaluate the current position
of the organisation in relation to best practice (products, services
or processes) and to identify areas and means of performance
improvement.
Performance measures should be established for the areas benchmarked.
5.1 Types of benchmarking
Process/
Type Internal Competitor
activity
A direct A process
An internal
function/depar competitor in in a non-
competitor
the same
What is it? tment is used industry is organisation is
as the
benchmark. used as the used as the
benchmark. benchmark.
Highlights Can be easier
Straight-
forward but relative to obtain
information
competitive
Evaluation may lack advantage but and can still
innovative hard to obtain find innovative
solutions.
information. solutions.
17
