Listicle: Benchmarking and horizon scanning: A manager’s guide Written by Mark Rowland Wednesday 14 June 2023 Share Share to LinkedIn Share to Facebook Share via email Frazer Lowrie CMgr shares his views on the top tools for internal and external benchmarking Benchmarking is a big part of Frazer Lowrie’s working life. As health, safety, quality and environment (HSQE) manager for Valley Group, he oversees internal audits and inspections to determine compliance with international standards around quality management, environmental management and occupational health and safety among others. “Benchmarking is a powerful strategy to elevate our performance, enhance our processes, and refine our products,” he says. “By understanding how top performers achieve their results, organisations can set goals, develop strategies, and implement changes to enhance their own performance and stay competitive in the market. Benchmarking serves as a valuable tool for continuous improvement and fostering innovation within organisations.” “It's essential to select the most relevant tools and sources based on your organisation's industry, objectives, and resources to ensure effective external benchmarking,” says Frazer. What is benchmarking? Benchmarking is a powerful tool for continuous improvement and implementing change. It involves identifying, measuring and comparing organisational practices to improve performance. Types of benchmarking Various types of benchmarking exist, including: Internal benchmarking – within the organisation Industry / competitive benchmarking – between direct competitors or target companies within the same industry Functional / non-competitive benchmarking - between a function in two or more organisations, not necessarily in the same industry Generic / world class benchmarking – of best practice The benchmarking process The benchmarking process typically consists of four steps, Frazer explains: Planning: define the scope, objectives and criteria of the benchmarking project. Data collection: Gather relevant and reliable information from chosen sources, using surveys, interviews, observations, or audits. Analysis: Compare and contrast that data using charts, graphs, tables, or matrices. Finally, you identify and prioritise the best practices, gaps, and recommendations. Action: Implement and monitor those actions. The best benchmarking tools The tools you use may depend on whether you are conducting internal benchmarking – which can help to assess and compare performance across different departments or business units within an organisation – or external benchmarking – which requires access to several external sources of information, collaboration with industry peers, and conversations with experts in the field. Here are Frazer’s essential benchmarking tools: Keep reading to discover some of the best benchmarking tools Login or register below for Free Instant Access Login If you are already registered as a CMI Friend, Subscriber or Member, just login to view this article. Confirm your registration Login below to confirm your details and access this article. Sign in with email Email remember me remember Forget? Please confirm that you want to switch off the "Sign in with email" remember me feature. Yes No Register for Free Access Not yet a Member, Subscriber or Friend? Register as a CMI Friend for free, and get access to this and many other exclusive resources, as well as weekly updates straight to your inbox. You have successfully registered As a CMI Friend, you now have access to whole range of CMI Friendship benefits. Please login to the left to confirm your registration and access the article. Listicle Looking for top tips, checklists or listed ways to help you along with your management and leadership journey? You can find these here with practical tools and tips to help you to become a better manager Members See More CMI Members have access to thousands of online learning and CPD resources. Learn more about our membership benefits Join The Community CMI offers a variety of flexible membership solutions, tailored to your needs. Find out more and get involved in the CMI community today.