Benchmarking is important for organizations that consider quality management as one of the critical success factors for their sustainable development. Benchmarking enthusiastic reception by many prominent business figures has created high levels of interest and expectations in a technique which promises big returns for co-operating partners. Though, like total quality itself, it must be understood in its proper context, and implemented in a holistic approach if it is to be effective.
Performance benchmarking describes the comparison of performance data that has been obtained from studying similar processes or activities. Comparisons of performance may be undertaken between companies or internally within an organization. It is useful for identifying strengths and opportunities for improvement.
Performance benchmarking may involve the comparison of financial measures (such as expenditure, cost of labour, cost of buildings/equipment, cost of energy use, adherence to budget, cash flow, revenue collected) or non-financial indices (such as staff turnover, the percentage of admin staff to front-line staff, budget processing time, complaints, environmental impact or call centre performance).
PGBM is a Market Driven Innovation (MDI) in designing, managing and implementing the benchmarking process based on the needs of key markets. The basic needs that PGBM covers is the low cost reliable and scientific benchmarking process. The market driven innovation for PGBM is based on a strict set of principles:
- Engineering/technical resourcing decisions are made based on a validated market need for benchmarking modules.
- A cross-functional team approach, marketing, technical, and scientific experts contribute to the development of the new benchmarking module together.
- Accelerated ramp up after launch from a higher operational knowledge of the benchmarking results
- Accelerated technology development based upon concrete design specifications