Benchmarking
A powerful tool to glean insights that can lead to improved performance
A free presentation by Slidecore
EDIT AS A POWER POINT �
EDIT AS GOOGLE SLIDES
Instructions for use
Just being extra careful, you don’t really need them ;)
You are free to use this presentation under Creative Commons Attribution License. But please, either keep the Credits Slide or mention Slidecore and other used sources in the slide footer. Help to keep the free resources environment a better place.
�
Table of Contents
Introduction
04
03
02
01
Ways to use benchmarking
How does benchmarking work?
Defining a Benchmarking Initiative
Introduction
01
What is benchamrking
What is benchamrking?
Benchmarking – i.e.
Comparing your business performance against certain reference points – is a popular and potentially powerful way to glean insights that can lead to improved performance. We’ll explore the various types of benchmarking and how these approaches can benefit your business.
What’s the difference between benchmarks and KPIs?
Benchmarks are reference points that you use to compare your performance against the performance of others. These benchmarks can be comparing processes, products or operations, and the comparisons can be against other parts of the business, external companies (such as competitors) or industry best practises. Benchmarking is commonly used to compare customer satisfaction, costs and quality.
�
KPIs, on the other hand, are decision-making and monitoring tools, used to track performance in relation to strategic goals. In other words, KPIs chart whether an individual, project, team, business unit or entire company is on track to achieve its objectives. KPIs are a bit like an early warning system, flagging up where things might be heading off-course and where action might be needed.�
Benchmark
KPI
=
Ways to use benchmarking
02
Three ways to use benchmarking
Process benchmarking
Strategic benchmarking
Performance benchmarking
Three ways to use benchmarking
This is all about better understanding your processes, comparing performance against internal and external benchmarks, and finding ways to optimise and improve your processes. The idea is that, by understanding how top performers complete a process, you can find ways to make your own processes more efficient, faster and more effective.
Process benchmarking
Three ways to use benchmarking
This compares strategies, business approaches and business models in order to strengthen your own strategic planning and determine your strategic priorities. The idea is to understand what strategies underpin successful companies (or teams or business units) and then compare these strategies with your own to identify ways you can be more competitive.
Strategic benchmarking
Three ways to use benchmarking
This involves collecting information on how well you’re doing in terms of outcomes (which could mean anything from revenue growth to customer satisfaction) and comparing these outcomes internally or externally. This can also refer to functional performance benchmarking, such as benchmarking the performance of the HR team or the marketing team (measuring net promoter score or brand awareness, for instance).
Performance benchmarking
How does benchmarking work?
03
How does benchmarking work?
Peer benchmarking
Companies look at their closest competitors and establish whether their products or services are in-line with what else is being offered in the marketplace.
Some of the most popular benchmarking methods include:�
Best practice benchmarking
Businesses examine the process of the companies that they aspire to be like in their industry, usually those at the cutting edge of their sector. This allows them to compare results, and identify areas in which they can improve their own processes.
How does benchmarking work?
Collaborative benchmarking
Some industries have trade bodies or consumer groups associated with them and these are an example of how collaborative benchmarking can work. These associations collect and publish data from all their members, allowing them to identify industry-wide trends and enabling effective reviews of best practices.
SWOT analysis
The SWOT process of benchmarking against competitors has a broader scope and works by establishing a business's strengths, weaknesses, opportunities and threats. By taking a more holistic look at competitor activity, you can get an accurate picture of the sector's landscape and how you fit into the wider market.
Some of the most popular benchmarking methods include:�
Defining a Benchmarking Initiative
04
Defining a Benchmarking Initiative
Because any process, product, or function in a business is eligible for benchmarking, methodologies vary. Typically, the benchmarking process involves:
Defining the subject of the benchmarking study
Defining the process or attribute to be studied in detail
Selecting and defining the measures
Selecting the comparison set
Assessing the data and identifying differences and gaps
Reporting on the results, identifying improvements and repeating the process
Benchmarking Examples
A firm interested in improving their customer service practices may compare its own processes and metrics against those of its most successful competitor. If it identifies negative discrepancies or differences in measures, it may start improving its processes to strengthen its performance. The firm will observe and measure the competitor's operations, and in some industries, it will send in employees as customers to gain direct experience.
Benchmarking Examples
One of the best examples that has been carried out in recent years is Starbucks.
Economic instability and the commitment to boost coffee sales by fast food companies such as McDonalds, have led Starbucks to initiate a benchmarking process.
Benchmarking �Examples
What did they decide to improve to alleviate this situation? One of the vital aspects for its business model is the time of preparation of its coffees. As we have seen before, they needed a leading company to look at to later implement the improvements. The chosen company: the Japanese car manufacturer Toyota. Without a doubt a great example to follow in optimizing the manufacturing time of their products.
The Bottom Line
Apparently 30% of the time spent preparing the famous Starbucks coffees was wasted on the time spent by employees bending, walking or choosing ingredients. After conducting an analysis of the benchmarks, they implemented an action plan based on the optimization of the processes to prepare their coffees, a redesign of the workspace, along with a new arrangement of the utensils and machines necessary for the preparation of their products. This led to an improvement in the production time of their products by almost 20%.
END
Thank you!
@yourcompany
Extra Slides and Infographics
05
Benchmarking Process
EXTRA INFO HERE
To correctly design and carry out a benchmarking process in your company, we recommend following the following steps: planning, data collection, analysis, action and monitoring.
PLANIFICATION
DATA
ANALYTICS
ACTION
TRACKING
1
2
3
4
5
SWOT
SWOT
Strengths
Lorem ipsum dolor sit amet, consectetur hendrerit sapien sed iaculis. Morb
Weakness
Lorem ipsum dolor sit amet, consectetur hendrerit sapien sed iaculis. Morb
Threats
Lorem ipsum dolor sit amet, consectetur hendrerit sapien sed iaculis. Morb
Opportunities
Lorem ipsum dolor sit amet, consectetur hendrerit sapien sed iaculis. Morb
S
O
W
T
Roadmap
| Q1 | Q2 | Q3 | Q4 |
Marketing Team | | | | |
Social Team | | | | |
Web Team | | | | |
Financial Team | | | | |
Task name
Task name
Task name
Task name
Task name
Task name
Task name
A strategic plan that defines a goal or desired outcome and includes the major steps or milestones needed to reach it.
Editable Chart (Excel)
+12
+20
Only editable in Powerpoint (right click -> edit data in Excel)
Editable Bars and Pie Chart (Excel)
Only editable in Powerpoint (right click -> edit data in Excel)
+25%
Editable Bars and Pie Chart (Excel)
Only editable in Powerpoint (right click -> edit data in Excel)
60%
Highlight
important data
Lorem ipsum dolor sit amet, consectetur hendrerit sapien sed iaculis.
MILESTONE
2.125.000
Highlight important data
in this slide
Illustration Sketchy Icon Pack
Editable Icon Set
Resize the icon
Change fill color and opacity
Add stroke
Add dash lines
Things you can do:
Big shout-out to the great people that provided us with the free resources of this presentation:
This template was made specially for you by
Visit slidecoretemplates.com to get more editable premium presentations for free