BENCHMARKING AND CONTRACT MANAGEMENT MATURITY MODELS
Management Discussion
As you prepare to respond to this post, refer to the “Benchmarking” Learning Activity. According to the text, what is not a requirement to conduct a benchmark? Now, think of a company that you support and describe the company. What company would you use to benchmark that company and why? What would be your goal?
BENCHMARKING AND CONTRACT MANAGEMENT MATURITY MODELS
Benchmarking
Introduction
In order to gauge how successful your company is, you can compare it to other companies that are the best at a certain activity. Read this section to learn how to successfully benchmark your company.
Benchmarking is a process by which a company compares its performance to the performance of other companies. Those other companies need not be competitors, nor be within the same industry. Instead, the purpose of benchmarking is to set a standard based upon the company that is recognized as the best at a certain activity. As an example, many companies use L.L. Bean as a benchmark for online ordering and order fulfillment. To be effective at benchmarking, firms must understand that a benchmark does not define the best possible outcome; it only identifies what a company has achieved. Choosing the wrong companies to benchmark can lead to setting standards that are too low. As a result, a benchmark is only one piece of information that companies should use to set performance goals for quality or any other important outcome.
Note. Adapted from “Quality Management,” by M. Vonderembse & G. White, 2013, Operations Management, Chapter 4. Copyright 2013 by Bridgepoint Education, Inc.
-Post adds value by raising novel points or providing new perspectives.
-Post is concise and clearly written in an academic tone; Sentences are complete; spelling, grammar and punctuation are correct.
Requirements: More than 15 characters, less than 4000 characters
Answer preview
Benchmarking is the process through which a company compares its performance with another company that is considered to have quality performance standards. Benchmarking is essential as it gives a snapshot of the performance of a business at a given time; hence it ensures strategic business planning and decisions that ensure its growth (Vonderembse and White, 2013). In order to benchmark, the company does not have to be a competitor and does not have to be within the same industry. Mindy’s is a food chain store that sells fast foods to its local customers and has recently expanded its food stores to other areas. The restaurant typically sells its food at peak hours, such as lunch and dinner, and it is currently facing heavy competition, with limited
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