Published 13th February 2006 by Constructing Excellence
Benchmarking is a method of improving performance in a systematic and logical way by measuring and comparing your performance against others, and then using lessons learned from the best to make targeted improvements. It involves answering the questions:
- ‘Who performs better?’
- ‘Why are they better?’
- ‘What actions do we need to take in order to improve our performance?’
Whilst benchmarking has been used occasionally in the construction industry for many years, the recent surge of interest has been encouraged by the publication of sets of national Key Performance Indicators that allow companies to measure their performance simply and to set targets based on national performance data.
A benchmark is “the best in class” performance achieved for a specific business process or activity. It is performance that has been achieved in reality, and can be used to establish improvement goals. Note: the term ‘benchmark’ is sometimes used incorrectly to refer to average performance or even to refer to a minimum acceptable standard. Care should be taken to use the term correctly.
For more detailed information on Benchmarking and Key Performance Indicators, please view the KPIZone website.
Filed in: KPIs Business Processes