THE BENCHMARKING MATRIX
Use this as a framework to identify internal and external best practices that you can use in your setting.
Benchmarking is a concept introduced by Frederick Taylor (see Theory 2) at the start of the twentieth century. He identified excellent performers by putting a chalk mark on their benches. This indicated to staff whose output or working practices they should emulate. This rather crude method of quality management has been refined over the past 100 years and is now a sophisticated tool used by many organisations.
| Product/Services | Function/Processes | |
| Internal | A comparative analysis of the products and services produced or provided by different departments in the organisation | A comparative analysis of the functions and processes undertaken by different departments in the organisation |
| External | A comparative analysis of the products and services produced internally with those that exist in other organisations | A comparative analysis of the functions and processes undertaken in the organisation with those that exist in other organisations |
Note: When undertaking external comparisons it is not necessary for the organisation to compare itself with other organisations in the same sector. For example, banks may learn a lot about the management of queues by comparing their practices with what goes on in supermarkets and fast food outlets.
HOW TO USE IT
The key to any benchmarking process is understanding where you are on the journey to excellence (use theories 77–79 to identify your position), and making sure that you go through the following four-stage cycle:
- The planning stage is the most important and time-consuming activity in the model. Find out which subject areas are most important to your organisation. Which activities within each area need to be benchmarked? What’s the best way to collect data on each activity? Who are the best practitioners of each activity?
- The doing stage is where you start to experiment. Agree with your benchmarking partners the scope of the study and any ethical issues that may arise. Choose the most appropriate people to undertake the study and ensure that the organisation, at all levels, is committed to the project (see Theories 60 and 65).
- The checking stage is where you start to analyse the data and determine any gaps in quality. Use Ishikawa’s fishbone model (see Theory 81) to identify the reasons for the gaps in performance and only then decide what action is required.
- The final stage is where you take action. Involve everyone who has a stake in the changes, monitor the progress of the initiative and revise your strategy if necessary (see Section 7). Use SMART targets (see Theory 97) to monitor progress.
QUESTIONS TO ASK
- How am I going to collect data from external organisations?
- Am I prepared to deal with all the findings from the exercise?