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Benefit of Benchmarking (Audit)

Best practices will lead to best performance. From individual to institution, measuring the performance is imperative to benchmark themselves with the best practices. The process of improving performance by continuously identifying, understanding, and adapting best practices and processes found internally and externally is benchmarking.

 

Benchmarking focuses on the improvement of any given business process by exploring the "best practices" rather than only measuring the best performance.

Organizations analysing the best practices have great opportunity for gaining a strategic, operational, and financial advantages.

 

The systematic benchmarking is focused on identifying, studying, analysing, and adapting best practices and implementing the results. 

 

The benchmarking process involves comparing one’s performance on a set of measurable parameters of strategic importance against others who have achieved best performance on those measures.

Benchmarks is an interactive and ongoing process that is likely to involve sharing information with other organizations working with them towards an agreeable methodology. It should be considered as a tool for improvement within a wider scope of customer focused improvement activities and should be driven by customer and internal organization needs.

Benchmarking - an Audit Process

Types of Benchmarking (Audit)

  • Tells how competitive you are; also shows the best prices available in the market for the goods & services that an Organization buys regularly

  • Reveals Organization’s true situation versus the rest thus helping the company to develop plans for action of improvement

  • Throws SWOT (strengths, weaknesses, threats and opportunities)

  • Fast-tracks change and restructuring by:

    • using tested and proven practices

    • overcoming inaction and complacency thus creating a sense of urgency because gaps are revealed

  • Compels organizations to investigate present processes, which often leads to improvement in and of itself

  • Fixes responsibilities and makes process owners to involve fully

Benchmarking is commonly termed as Audit