Benchmarking Model Essay Example | Topics and Well Written Essays - 2000 words - 1

Benchmarking Model - Essay Example , systematic process of evaluating companies recognized as industry leaders, to determine business and work processes that represent ‘best practices’ and establish rational performance goals† (Zairi, 1998: 13-14). The core principle of benchmarking is measurement and comparison involving the best practices, which helps significantly improve the existing practices and performance. It should be noted that the so-called â€Å"best practices† have different levels and in reality the most preferable type of the ‘reference point’ or ‘benchmark’ may not even exist either due to limited technological levels, scarce resources and/or time, etc. Consequently, the best available practices are used as reference points in this case, which helps set feasible performance goals in the environment by incorporating realistic practices into operations. Jarrar & Zairi (2001) performed a large survey of 227 organizations in 32 countries in order to understand and assess the major tendencies and future directions of benchmarking. The survey results demonstrated that the practice of benchmarking was gaining prominence worldwide and across various industries, from manufacturing education. Also, Jarrar & Zairi (2001) listed several benefits of using benchmarking, namely: improving quality; increasing speed of service; improving processes; understanding customer requirements; setting internal standards; influencing strategic decision- making process; managing resources more effectively; deploying resources; and improving personnel management and changing leadership style within the organization. However, these benefits are available only to those whom are aware about the specifics of benchmarking process, and particularly such essential aspect as various types of benchmarking. There are four major types of benchmarking identified in the literature: benchmarking against internal operations (Internal Benchmarking); benchmarking against external direct product competitors