Benchmarking is a process in strategic management wherein organizations evaluate various aspects of their processes with respect to the best practices, either in their own segment or otherwise. It is the process of setting benchmarks and comparison of actual performance with them. It is something which can be measured and used as a standard to compare other things with it. Benchmarking overcomes paradigm blindness and allows the organization to adopt newer and better processes. This article discusses some aspects of benchmarking.

Benchmarking is the process of identifying, understanding and adopting outstanding practices from organizations anywhere in the world in order to improve the performance of the concerned organization and deliver results par excellence. It is a systematic process that allows an organization to determine whether the performance of its processes and activities represent best practice or not. It is useful to find out how well an economic unit is performing in comparison with other similar units. Benchmarking opens the organizations to new methods, ideas, tools and techniques, in order to enhance their efficiency and increase the procedural effectiveness. It is a powerful strategic management tool and a technique of improving business processes. It assists in overcoming the organizational resistance to new ideas by demonstrating that they are practical and workable, as others are effectively using them. Benchmarking is the process of determining who is the best, who sets the standard and what that standard is. Benchmarking is best used and described as a framework of strategic planning in the areas for improvement and identification of parameters worth emulating.

Measures can be applied to the key success factors and the benchmarks can be used to develop future quality of the firm to enhance its overall competitive position in the market. Benchmarking is a continuous search for the most efficient and effective methods of accomplishing a particular task by comparing the existing methods and methodologies with those of other sub-units in the same organization or in other organizations of the same or different industries within or outside the country. Benchmarking is a continuous and systematic process of comparing an organization's strategy, procedures and processes with those of the world leaders and the best-in-class organizations, in order to learn how they achieved excellence and then setting out to match and even surpass them. By benchmarking we can find out the best performer of a particular business process and of practices and emulate them. Selection of benchmarks is a real crucial decision while benchmarking. A benchmark is a point of reference for the measurement and comparison of performance. It is a strategic point for the efficient performance of business activities.

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