Is benchmarking a worthwhile pursuit?
By Ken Stork -- Purchasing, 9/2/1999
Periodically I become constructively critical on conventional wisdom and new management fads. Last month, I warned readers to beware of shortcut management, a new term I coined.Some readers, however, may be thinking that benchmarking itself is a passing fad in shortcut management. Is it?
Recently, a brief article in Business Week cited a new study by Bain & Company on the benefits that management is receiving from major investments in new concepts, tools, and processes. In 1998, according to response averages, companies used 13.4 different tools. But 82% of the survey respondents reported that most concepts were guilty of promising more than they delivered. Sound familiar? A good benchmarking project would be to determine which tools consistently deliver more than they promise. According to the survey, executives said the following tools provide the best results:
- Customer satisfaction.
- Strategic planning.
- Pay for performance.
- Benchmarking.
These results showing favorable payback from benchmarking make sense primarily because benchmarking is a tool that helps companies build solid foundations for future improvement. Becoming proficient in benchmarking is an important process for improving other areas, such as customer satisfaction, strategic planning, etc.
A wide variety of management publications make much ado every month over the potential benefits from improved supply chain management. But most of what I see is about potential benefits and recommended tools for getting there. There are too few articles on great benefits actually achieved and the specific tools and processes a particular business employed to create its success. The successes are out there, but smart managers don't brag in public, tipping off their competitors and risking hard-earned leads.
This is one reason why business folks need to allocate time--personally for those in management roles--to conduct well planned and executed benchmarking studies on topics of strategic importance. Business people need to become persuasive potential benchmarkers to gain legitimate access to real success stories in supply chain management.
Prior surveys by Purchasing Magazine have shown only lukewarm enthusiasm and commitment for using the benchmarking tool. Some people are steadfast in their beliefs. These people are a big part of the problem. Others change their beliefs over time. These are the people most apt to play major parts in improving supply chain management.
Stork is president of Ken Stork & Associates Inc. in Naperville, Ill., (630) 851-5445 or e-mail: ken@kstork.com. Formerly Motorola's corporate director of materials and purchasing, and a member of Purchasing's editorial advisory board, Stork focuses on consulting and custom educational programs in strategic sourcing and supply base management.
Talkback
Related Content
Related Content
Sponsored Links
View All Blogs
Now Playing:
