Performance Management Research Unit Making the Case for Benchmarking

Best practice benchmarking is now relatively common in all sectors of the economy, including the voluntary and public sectors. It is even being adopted by small and medium sized enterprises, although seldom by very small firms. The gains in terms of improved performance of key processes are often assumed to be self-evident, yet systematic evaluation of the costs and benefits of benchmarking is relatively rare. Accountants and the Open University Business School which aims to improve understanding of the factors which contribute to 'successful' and 'less successful' experiences with benchmarking. Data from questionnaire surveys and several case studies of organisations actively involved with benchmarking will be presented, together with views from managers who have found that benchmarking did not live up to their expectations. Conclusions will be drawn about contingent 'success factors' and an emerging life cycle of benchmarking practices.