Why is bench marking important, and how can it be conducted in an organization effectively?

Expert Answers
ladyvols1 eNotes educator| Certified Educator

Benchmarking is the study of a company or organization that excells in all aspects of it's acheivments, then using the data that is collected to improve the performance of their own company.  To conduct the benchmarking process correctly the company and the studied company must agree to share information and be co-operative with each other.  After the data is collected in the specific areas needed, the first business will analyze the data and set new goals or "benchmarks" to improve thier product, production, or management.

reitu | Student
It is critical for learning purposes where basically an organisation may want to adopt what could have worked for another similar organisation with requisite modifications to suit its own unique position, it also serves as a motivational tool that boosts the organisational members' morale by instilling the go get it attitude, they would go if another organisation can achieve so much, why not us? An organisation could attempt to find out best practice strategies or systems in their industry or a related one and attempt to reconcile the SWOT elements it has to accordingly adjust and learn from such a successful company. Benchmarking however has to occur as realistically as possible since no one size can fit all companies as such an organisation has to benchmark wothout being derailed from its main goals and objectives.