2.2.8 Benchmarking performance
The purpose of benchmarking is to compare the organization’s own asset management practices against those of a selection of similar organizations, but it is important that the comparison takes into account the organization’s overarching context and circumstances. Benchmarking should be seen as a positive and proactive process whereby an organization assesses how it performs activities in comparison to other organizations.
Four approaches to benchmarking may be considered, each of which provides a different perspective:
- Strategic benchmarking compares outcome performance in the implementation of strategic or policy objectives across organizations.
- Functional benchmarking compares the performance and structure of an entire service area or function within an organization.
- Process benchmarking compares and measures processes, sequences or activities with those of other organizations to identify how existing methods can be improved.
- Data benchmarking involves the use of objective data for comparing performance, very often cost- or measurement related data.