#capability benchmarking

An organization does not operate in vacuum therefore it’s inevitable to not compare its capabilities against the best practices in the industry. Capabilities of a business refers to the competencies, skills, resources, and strategic assets that enables it to deliver value to customers, perform core functions and achieve goals. Benchmarking capabilities allows businesses to compare against the best in the industry.

In this article we will discuss the steps involved in Capability Benchmarking.

1.Identify the area of focus:

Determine the capabilities or areas that are to be benchmarked. It can be anything like a process, product, service, department, technology etc. It is here that you need an expert that can help you navigate your benchmarking plan further. Grant Thornton Bharat has a top-notch business excellence team that will help in Capability Diagnosis. They have 12+ years of industry experience and work in multiple domains.

2.Select Benchmarking Partners:

These are recognized industry leaders or competitors in the chosen capabilities. These partners should be ideal representatives of your chosen capability.

3.Establish metrics:

Metrics and performance indicators are crucial for evaluation of capabilities. These should be relevant, measurable, attainable, and aligned with benchmarking standards.

4.Collect Data:

Data can be gathered from internal source and benchmarking partners. It can be done through primary and secondary data collection methods. A third party like Grant Thornton Bharat can assist and make this process hassle-free.

5.Analysis and Comparison:

Identify areas of improvement. Spot trends and practices that indicate improvement strategies.

6.Study the Best Practices:

Learn from the benchmarking partners and understand what drives their success. Look for ideas, processes and practices that can be adopted for improvement.

7.Create Improvement Plans:

The insights gained should be devised into plans that are SMART (specific, measurable, achievable, relevant, and time-bound).

8.Implement and Monitor:

Execute the improvement plans and track the performance continuously against the benchmarking metrics. Change or refine strategies as required.

             Capability Benchmarking is a structured and data driven approach that helps organizations set performance targets, initiate innovation, and improve effectiveness and efficiency.