MANAGEMENT
Ch – 12 BENCHMARKING
BY : GEETIKA MALHOTRA
SUDDHASREE GHOSH
BENCHMARKING
“The continuous process of measuring
products, services, and practices against the
company’s toughest competitors or those
companies renowned as industry leaders.”
OBJECTIVES:
Establish that there is a need for change
Identify what should be changed
The organization after the change
CASE STUDY:
Xerox is most concerned with customer satisfaction.
When benchmarking L. L.Bean, Xerox became
patently aware of Bean’s customer satisfaction policy.
If a customer is unhappy with a product, Bean will
take back the product and return the customer’s
money.
Xerox believed that to be a best practice.
But Xerox went beyond just copying the practice.
Xerox asked its customers for feedback about the best
practice and found some interesting results.
Customers did not want their money back; they
wanted the device to work.
So Xerox had to adapt the best practice to
work for its customers.
The result is Xerox’s Total Satisfaction
Guarantee, which says that if the customer is
dissatisfied with a Xerox product within a
stated time frame after purchase, Xerox will
replace the product, at the customer’s
request, until he or she is satisfied with it.
So Xerox did not just copy the L. L. Bean
best practice.
Xerox went a step further to adapt that best
practice to its specific customer needs.
BENCHMARKING FUNDAMENTALS
Phase 1: Plan
Identify The Subject
Identify Benchmark Partner
Determine The Data Collection Method
Collect Data
Phase 2: Analysis
Determine Competitive Gap
Project Future Performance
Phase 3: Integration
Redefine Goals And Incorporate
Communicate Results
Phase 4: Action
Develop Action Plan
Phase 5: Maturity