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Methodology: Benchmarking PAGE 2 Methodology: Benchmarking Overview “Benchmarking is a systematic and continuous measurement process; a process of continuously comparing and measuring an organization’s business processes (products, services, and practices) against business leaders anywhere in the world to gain information which help the organization take action to improve its performance” (International Benchmarking Clearinghouse). In order to help clients achieve and continue their business processes improvements, Arthur Andersen developed a Benchmarking approach. This approach is fundamentally synthesized from our worldwide project experience, extensive discussions with experts from both inside and outside the firm, and a comprehensive review of published literature and other methodologies. Our approach is currently working in several organizations. Benchmarking studies may be divided into two basic categories of project: - Component of a larger project (e.g. a process improvement or redesign project) - Stand-alone project Another consideration is that there are significant differences in the types of benchmarking studies, as follows: - Processes versus metrics - Strategy versus operations - Internal organizations versus outside partners - Industry partners versus cross-industry partners - Better practice versus World Class Best Practice As a study, Benchmarking should provide the following underlying outputs: - Measures that compare performance for the benchmarked process, or metric, or strategy, or operations among the target organizations and internal levels - A description about the organization’s gap in performance as compared to these identified performance levels - An identification of whose best practices and enablers produced these results observed during the study - Performance goals for the process and an identification of areas where action can be taken to improve the sponsoring organization’s performance The objectives of this methodology are t