Benchmarking vs. Goal Setting - Differences

W

Willyboy

#1
Hello again.


Our QMS manual defines “Benchmarking Data” as “The results of an investigation to determine how competitors and/or best-in-class companies achieve their level of performance.”


In our weekly meeting, I asked why the definition does not include our internal data gathering. Some examples of data we are collecting are average wages, downtime and satisfaction of our customers. We are collecting and graphing this info for 2008 and 2009.


I was told two things: 1) that the benchmarking of our data was for internal use only and would not tell us much except for how we are doing against ourselves and 2) that to get the competitor's information of the type that we need would require industrial espionage. There was a bit of tongue-in-cheek with the espionage comment, but still....


I thought that benchmarking against yourself was a good way to see your progress, or lack thereof. Otherwise, why are we collecting the information?


Also, what's the difference between benchmarking and goal setting? Isn't benchmarking the collection of data and goal setting is the setting of goals based upon that data?


If the above is correct, then wouldn't internally generated numbers be OK for benchmarking?


As always, thanks!


Bill
 
Elsmar Forum Sponsor
#2
Re: Benchmarking vs. Goal Setting

I don't think you are too far off track. Goal setting is what you want to accomplish. Benchmarking is comparing where you are with some reference. Mostly that would be comparison to out side of the organization. Benchmarking can be done internally, however..... You might be benchmarking off something that is not very good. Usually internal benchmarking would involve comparing one department with another.
 

Jim Wynne

Staff member
Admin
#3
Re: Benchmarking vs. Goal Setting

Hello again.


Our QMS manual defines “Benchmarking Data” as “The results of an investigation to determine how competitors and/or best-in-class companies achieve their level of performance.”


In our weekly meeting, I asked why the definition does not include our internal data gathering. Some examples of data we are collecting are average wages, downtime and satisfaction of our customers. We are collecting and graphing this info for 2008 and 2009.


I was told two things: 1) that the benchmarking of our data was for internal use only and would not tell us much except for how we are doing against ourselves and 2) that to get the competitor's information of the type that we need would require industrial espionage. There was a bit of tongue-in-cheek with the espionage comment, but still....


I thought that benchmarking against yourself was a good way to see your progress, or lack thereof. Otherwise, why are we collecting the information?


Also, what's the difference between benchmarking and goal setting? Isn't benchmarking the collection of data and goal setting is the setting of goals based upon that data?


If the above is correct, then wouldn't internally generated numbers be OK for benchmarking?


As always, thanks!


Bill
There is no universally-accepted definition of "benchmarking." It means whatever you want it to. If you adopt the general notion of benchmarking being comparison against some sort of standard, you might set goals in order to achieve a level of performance consonant with the benchmarked entity.
 
Y

yeshpal

#4
Re: Benchmarking vs. Goal Setting

There is no universally-accepted definition of "benchmarking." It means whatever you want it to. If you adopt the general notion of benchmarking being comparison against some sort of standard, you might set goals in order to achieve a level of performance consonant with the benchmarked entity.
"... benchmarking ...[is] ...'the process of identifying, understanding, and adapting outstanding practices and processes from organizations anywhere in the world to help your organization improve its performance.'"

—American Productivity & Quality Center
 
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