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What is the Real meaning of benchmarking???????????
Can anyone tell me?????????
So I was reading about some vendor offering
"benchmarking" services and I wondered,
"Where had all the hype gone around
benchmarking?"
Once it was a panacea to help you find out where you
were behind the competition; and where you were ahead. But is it?
Was it ever?
I don't think
so - quite completely. To benchmark, you have to be measurable; to be measured,
you have to understand what you are looking at; to understand what you are
looking at, you have to have knowledge. If you have knowledge of the thing you
are looking at, you have met it before. Hardly a tenet if competitive
differentiation forms a unique value proposition.
How can you
develop a business plan for an opportunity that is brand new and has no data?
Are most
decisions on new products and new markets "soft" because management
wants detailed and precise information to make a decision and yet by default
these are the hardest places to get detailed and precise information?
The more you know about something (in this sense)
the less valuable it becomes in terms of future or potential value. Sound
strange maybe.
To be honest benchmarking does have a place.
But if your business is so caught up in this area it
is likely your management or leadership is bereft of ideas. It is a great way
for a third tier player (or follower) to find out where "basic" gaps
are in order to maintain a third tier position (in most cases).
But it won’t really help you improve your position
that much. It won’t help you get to tier 1! And who wants to be in tiering 3
all their lives?