This page has been archived.
Information identified as archived on the Web is for reference, research or recordkeeping purposes. It has not been altered or updated after the date of archiving. Web pages that are archived on the Web are not subject to the Government of Canada Web Standards. As per the Communications Policy of the Government of Canada, you can request alternate formats on the "Contact Us" page.
"Benchmarking is the practice of being humble enough to admit that someone else is better at something and wise enough to try and learn how to match and even surpass them at it."[3]
Formal benchmarking is the continuous, systematic process of measuring and assessing products, services and practices of recognized leaders in the field to determine the extent to which they might be adapted to achieve superior performance. Some features of formal benchmarking, namely determining a strategic orientation, goal setting, performance measurement and best practices sharing, are integral to how federal departments, agencies and Crown corporations have operated for years. It is a legacy to build on. The challenge is to take advantage of the tremendous potential of systematically benchmarking the best practices of public service and industry leaders and to incorporate them into business strategies, management practices, work processes and services.
Some North American private and public organizations have adopted benchmarking and have realized significant improvements in processes, quality service, customer satisfaction, employee performance and reduced costs by learning from others and acting on the knowledge they have gained through the process.
Strategic Benchmarking is using best practices to develop corporate, program, product strategies and results. It includes:
Operational Benchmarking is assessing and implementing the best practices of industry or public service leaders to improve processes to the extent possible to meet organizational goals. It includes:
Benchmarking is an integral component of a performance management process, where the relative comparisons to the benchmarks become some of the indicators for performance. It involves the establishment of service standards, performance levels, performance indicators, baseline measurements or benchmarks as comparisons against which to measure future performance, within or outside the organization, to sustain competitive advantage and to encourage or force improvement.
Performance measurement may include:
Once internal benchmarks have been determined, organizations involved in benchmarking then seek out industry or public service leaders to make comparisons and to implement best practices.
When looking for industry or public service leaders to partner with, an organization will make one of four types of comparisons; it will make an internal comparison, benchmark with a competitor, benchmark along functional lines, or benchmark generically:
Comparisons within the Public Service e.g., Revenue Canada's audit process compared to the Auditor General's process
Comparisons between direct competitors e.g., Ford's automobile design process compared to General Motor's process
Comparisons between functions inside and outside the Public Service e.g., AECL's library function compared to Weyerhaeuser's library function
Comparisons to "unrelated" organizations known for innovation e.g., Xerox benchmarked L. L. Bean's product distribution process
The American Society of Quality Control (which set up the International Benchmarking Clearinghouse) and many consulting firms offer training in benchmarking models, tools and techniques. Xerox, Price Waterhouse, McKinsey and AT&T are among many firms which have spun off benchmarking groups as a result of their own experience. While the models may vary in their design and emphasis, they are all fairly similar.
Generic Steps to Benchmarking:
Possible Costs Of A Benchmarking Study[4]