Roy's Blog

December 5, 2009

Benchmarking is the enemy of being remarkable

Benchmarking is a key component of the Total Quality Management (TQM) philosophy introduced in the 1960’s by the Japanese to the western world and adopted by many organizations seeking to improve their overall performance.

TQM topics such as DRTFT (Do it right the first time) and PONC (the price of non-conformance) and the Quality definition (conformance to requirements) pervaded the teachings of organizational leaders and were the hot topics of the day.

Enemy

On top of the TQM concept pyramid was benchmarking Best in Class organizations with the following performance improvement process:

1. identify the organization that excelled in the operation that you believe requires improvement

2. map their system to define how they perform the operation

3. define the actions necessary to incorporate their operating systems, processes and methods with the hopes of improving to their levels of performance.

Copy the best organization you can identify with the objective of in hopes replicating their performance.

The benchmarking process is beneficial to improve the performance in some aspect of an organization’s operations.

But it incorporates a copy algorithm and as such does little to make you unique and stand-out from your competitors. 

The maximum benefit you can achieve is best in class levels of performance which may return better operating results than previously obtained but unless you vault beyond these levels true differentiation is unlikely to happen.

Define best in class and establish them as the level to BE DiFFERENT from.

Look at organizations outside your particular line of business.

Pole vault

Set the best in class bar and then go beyond it.

Better operational performance doesn’t give any organization a competitive edge or remarkability.

Cheers,
Roy
Check out my BE DiFFERENT or be dead Book Series

Other articles you might like…
Your strategic plan should be 24 months not 2 years
Are you practising these 16 strategic acts?
3 things to make your strategy more relevant

  • Posted 12.5.09 at 05:42 pm by Roy Osing
  • Permalink

Feedback

To share your thoughts, please contact Roy.