Page 84 - BA1 Integrated Workbook STUDENT 2018

Chapter 8

Benchmarking

Benchmarking is the establishment, through data gathering, of targets and
comparators, through whose use relative levels of performance (and
particularly areas of underperformance) can be identified.

CIMA official terminology

There are three main types of benchmarking scheme.

 Internal – benchmarking is undertaken against another part of the organisation.

 External – benchmarking is undertaken against a successful rival.

 Process/activity – benchmarking is undertaken against a similar process in a
non-competing organisation.

6.1 Drawbacks of benchmarking

Drawbacks include:

 best practice companies unwilling to share information

 lack of commitment by managers and staff

 difficulty in defining ‘best practice’

 costly in terms of time and money

 provides a retrospective view – current success is no guarantee of
future success.

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