Benefits of Benchmarking:

• Creating a culture that values continuous improvement to achieve excellence.
• Sharing the best practices between benchmarking partners.
• Prioritizing the areas that need improvement.
• Enhancing creativity by devaluing the none invented here syndrome.
• Increasing sensitivity to change in the external environment.
Shifting the corporate mind set from relative complacency to a strong sense of urgency for ongoing improvement. Focusing resources through performance target set with employee unit. Benchmarking is based on learning from other rather than developing new and improved approaches. Since the process being studied is there for all to see, therefore a firm will find that benchmarking cannot give them sustained competitive advantage. Although helpful, benchmarking should never be the primary strategy for improvement. If all the industries employ the benchmarking approach, it will lead to stagnation of ideas, strategies, best industry practices, etc. so benchmarking should not be a substitute for innovation. It must be a mere improvement tool. Bench marking can be applied to any business or production process. During this step, determine which functions, tasks, processes, or activities within the own organization will be subjected to benchmarking. Appoint a benchmarking team that will pilot the activity within the origination. In this stage formulate the project goals determine the data to be collected and prepare a tentative list of questions.