Overview

For the man who knows not what harbor he sails, no wind is the right wind.

Sienna

Benchmarking, according to Jack Grayson, involves "seeking out another organization that does a process better than yours and learning from them, adapting and improving your own process ." ^[1] Benchmarks, on the other hand, have come to be recognized as those specific measures that reflect a best-in-class standard. Best practices, as the name implies, are those practices best for a given process, environment, etc., and that allow a company to achieve a benchmark level of performance in a given category. Benchmarking, then, involves emulating the best practices of others to improve your processes so that you can achieve a superior level of performance as measured against benchmarks, or best in class. Benchmarking is a continuous process, requiring constant attention to the latest improvement opportunities, and the achievements of others. Further, as Joseph Juran said, "If you don't measure it, you don't manage it." So benchmarks represent those measures we choose to manage to improve performance.

This chapter explores Beta's use of benchmarking, which revealed they were thoroughly average, and represented the beginning of their journey to understanding and implementing the best practices discussed later. We will also review the dynamic nature of bottlenecks, which can help prioritize resources for applying best practices and minimizing key losses, ultimately leading to improved performance. But first, let's review the benchmarking process itself.