Benchmarking and Performance Measurement

1367 Words3 Pages

Bench marking is setting some standard to the level of products and services being produced or offered to customers while still minimizing costs. The role of benchmarking is providing a reference point. The discipline of bench marking is focused on analyzing, identifying, studying and adopting best practices in an organization like customer satisfaction, product quality, throughput and implementing the findings. Performance measurement is the regular collection, reporting and analyses of resources used, work produced and whether the specific intended objectives were realized. Performance measurement is usually based on set goals and expected obligations against the outcome. There is a clear difference between a Performance Measure and a 'Benchmark'. The former provides a continuing measure of productivity, cost efficiency, operating excellence or level of quality and service delivery. A Benchmark on the other hand is a point of reference or target. In order to bench mark, the management needs to understand the needs and potential of the organization through its budget mostly and to avoid chasing the target while not accomplishing goals. It’s therefore clear that after setting the benchmark, the performance measures come in place to evaluate how the business did. Performance measurement is something that is done periodically over time to determine whether the business is working towards its goals.
In building a performance measurement system, one should take into account the four principles; Principle one; Establish broad goals to help in decision making;- review the organization strategic plan. The goals should be developed after an assessment of community conditions, a review of all applicable plans, and a review of internal oper...

... middle of paper ...

...ions-Management-Principles, Accessed on 6th Dec 2013

Alan Probst, (2009), performance measurement, benchmarking & outcome-based budgeting for Wisconsin local, government, local government center, Accessed on 6th Dec 2013

David Gillen, (2001), the role in quality management, benchmarking and performance measurement: Accessed on 6th Dec 2013.
Dr. Jens Brunner, Dr. Rainer Kolisch and Dr. Jesper Larsen, (April, 2013) Airport Operations Management, http://www.journals.elsevier.com/computers-and-operations-research/call-for-papers/special-issue-airport-operations-management/, Accessed on 6th Dec 2013

Economist, Expanding Heathrow westwards could give London the airport capacity it needs at reasonable cost, (2013) http://www.economist.com/news/leaders/21574486-expanding-heathrow-westwards-could-give-london-airport-capacity-it-needs-reasonable, Accessed on 6th Dec 2013

Open Document