At ZBIN we have officially adopted Mozambique as our investment destination, this because no one talks positively about Mozambique. The only time the international community talks about Mozambique is when there are natural disasters like the current Dineo Cyclone which recently ravaged the beautiful nation. So if you want to read positive news about Mozambique then ZBIN is your number 1 choice. We have also decided to look for best business practice from countries that are rarely covered in Zimbabwe such as Rwanda, Uganda, Kenya, Philippines, Malaysia and Israel.
So this morning we would like to cover an important business practice called Benchmarking. Some of you already do benchmarking without knowing it, it is not an entirely concept. Let me provide you with a definition below:
Benchmarking is the process of comparing your own organization, operations, or processes against other organizations in your industry or in the broader marketplace. Benchmarking can be applied against any product, process, function or approach in business. Common focal points for benchmarking initiatives include: measures of time, quality, cost and effectiveness and customer satisfaction.
In short Benchmarking is to compare your own operations versus competitors and to generate ideas for improving processes, approaches and technologies.
Benefits of Benchmarking
- Enables you to systematically monitor competitor’s shifting strategies and approaches.
- It enables you to generate ideas for improving own operations
- Benchmarking can help to reduce costs and increase profits.
- Enable you to strengthen customer loyalty and satisfaction
- Helps to identify and eliminate gaps in service or product delivery or to gain a competitive edge.
The Limitations of Internal Benchmarking:
There is a danger of being preoccupied with benchmarking such that you easily lose track of competitor and broader-world innovations and changing demands of customers. If you are not careful you can end up responding to competitor actions and not focus on your strategy.
So do not operate your business in isolation, always check what is happening next door, in your industry or across the borders. In simple terms this is a process of learning from the best, the crème de la crème in your industry. In Benchmarking Part 2, we will cover how to carry out a Benchmarking exercise and provide a few practical examples.
Enjoy your weekend
