The Xerox Corp. is credited with being the first to use benchmarking as a strategic tool. The company found out that it could learn much from the practices of other organizations and from the process of comparing its organization to others. This is true for all of us, whether we’re comparing one internal unit to another or comparing our processes to those of other organizations who do something especially well. Xerox labeled these activities benchmarking.
However, simply visiting another company to see how it assembles a product, solves customer problems, works with its business partners, or conducts its meetings is not the kind of benchmarking that will result in organizational learning. To really learn, you must take your organization through a process of: (1) Self-assessment; (2) Examining what is done by another organization; (3) Using that information to plan change at home; and (4) Supporting that change through training and development activities.
The key to this whole process is to do a thorough self-assessment up front where you learn very specifically what needs to be changed. This means collecting enough data to make you confident that you fully understand the depth and breadth of the problem. (It is not enough to know that the machines on the shop floor are breaking down frequently.) If you try to benchmark with only a superficial understanding of the problem, you will not know what organization to select for benchmarking, what to look for in that organization, or how to apply the alternative approach. You also will not be able to gain the support and acceptance of those who have to implement the changes in your unit. You need to know which machines are breaking down and under what conditions, who is involved in maintenance and how are they handling it, what suggestions they have for improvement, and what factors are contributing to the breakdowns, such as the maintenance schedule, the production process, the capacity of employees to maintain the machines, the maintenance budget provided by the finance department, the quality of the machines, and the plant floor environment (too cold, too hot, too dirty, too dry, etc.). If you do not know that the environment is part of the problem, you might not ask the benchmark organization that you select about maintaining the quality of air in the workplace. And the critical question you need to ask during the self-assessment phase is, “Should we be doing this process in the first place?”
Before you even embark on a benchmarking project, prepare the organization for learning and change. Leaders and workers must accept that they are not the best in everything and that they have something to learn, especially from others outside the organization. Prepare them for using the information that you collect, and be sure they understand that they might have to change some things and train people in the new processes. Do not begin raising expectations that things will improve before you help people develop the skills, knowledge, and attitudes they need to make the necessary changes.