Question

Internal Benchmarks

Discuss internal benchmarks and how benchmarking is performed at the department level. Explain how a COO may use internal benchmarks to identify best practices within his or her organization.

Answer 1

Step 1 - First we have to understand what is Benchmarking?

Benchmarking is a process of comparison of performance against a specific standard (Benchmark).

So , this process can be done in two ways INTERNALLY OR EXTERNALLY.

STEP 2 - INTERNAL BENCHMARKING-Analysis of performance within department or internal division to determine best performer and improve performance.

External Benchmarking-Analysis of performance against best competitor to raise the bar of the organisation.

Step3-BENCHMARKING AT DEPARTMENT LEVEL

At department level internal benchmarking can be done within one department between employees of the department and It can also be done between two or more department in case they perform same task (As in case of shift base work).

For doing internal benchmarking first they have to analyse the performance of all the employees or department then they we will be able to identify the best performer against which performance of other will be compared.

STEP 4- HOW CEO USES INTERNAL BENCHMARKS

-USE INTERNAL BENCHMARKS TO SET TARGETS FOR OTHER PERFORMERS TO IMPROVE THERE LEVEL.

-USE INTERNAL BENCHMARKS TO INDENTIFY TOP PERFORMERS FOR ORGANIZATION WHICH CAN BE USED TO DO IMPORTANT PROJECTS.

-HELPS IN CREATING COMPETITIVE ENVIRONMENT IN ORGANISATION .

- USED BY CEO'S TO INDENTIFY THE BEST METHOD TO PERFORM A PERTICULAR TASK.