STRATEGIC TOOLS Lectures 36-38
AGENDA..STRATEGIC TOOLS • Benchmarking • Business Process Re Engineering • Reverse Engineering • Balanced Score Card
BENCHMARKING • WHAT • WHY • TYPES • PROCESS • BARRIERS • CRITICISMS • ADVANTAGES & DISADVANTAGES
• Definition There are many definitions according to different perceptions and applications of the technique and philosophy. • Benchmarking defined as a process for improving performance of any organization by continuously identifying, understanding & adopting outstanding practices and processes inside or outside the organization. Benchmarking is basically learning from others. Introduction What /Why/Types/Process/Barriers/Criticisms/Adv & Disadv.
BENCHMARKING - DEFINITION “ Continuous process of measuring products, services, and practices against the company ’ s toughest competitors or those renowned as industry leaders”
The term 'benchmarking' was first adapted to business practices by Xerox in 1979. Xerox’s aim was to evaluate itself, to identify its strengths and weaknesses and adapt to constantly changing market conditions. Origin
Benchmarking allows you to discover the gaps in your performance when compared with someone else. The Benchmarking is used for improvement in many aspects with different ranking as shown in the table below: Importance of Benchmarking
“ 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. ” - APQC, 1998 BENCHMARKING THOUGHTS (1/3)
BENCHMARKING THOUGHTS (2/3) • In sharp contrast to the conventional approach of setting the future goals extrapolated from the internal practices and past trends. • Since external environment and market conditions change rapidly; goal setting which is internally focused can ’ t be true reflection of customer ’ s expectations.
BENCHMARKING THOUGHTS (3/3) • Customers ’ expectations are highly liquid and are driven by standards set by…… • ……. best performer. • Any product or service just below these standards may not catch the eyes of customer.
Why use Benchmarking(1/2) • Survival lies in emulating best and not in lagging behind • Bench marking is time and cost efficient because it involves imitation and adaptation rather than pure invention. Prevents “ Re-inventing the wheel ” . • Quantum-leaps in performance What /Why/Types/Process/Barriers/Criticisms/Adv & Disadv.
Why use Benchmarking (2/2) • An effective ‘wake-up call’ and helps to make a strong case for change • Practical ways in which step changes in performance can be achieved by learning from others who have already undertaken comparable changes • The impetus for seeking new ways of doing things and promotes a culture that is receptive to fresh approaches and ideas • Opportunities for staff to learn new skills and be involved in the transformation process from the outset.
• There are several different types of benchmarking in which a organization can engage.
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