Benchmarking is "a management tool that can be defined as the systematic process of searching for best practices, innovative ideas and efficiencies that lead to continuous improvement."(Wong & Wong, 2008), but previously, Kearns, the Xerox CEO in the 1980s, defined benchmarking as "the continuous process of measuring products, services and practices against the toughest competitors or those companies recognized as industry leaders". The common factor is that “Benchmarking is an essential tool for continuous improvement of quality" (Dattakumar & Jagadeesh, 2003).
Benchmarking allows for the adoption of another organization’s best practice; in the instance of success, it assures of better practice and emulation of industry’s best, in the instance of failure, it does not. Also post success in benchmarking, does not mean attaining a growth beyond the company being benchmarked.
“Following Total Quality Management (TQM) and Continuous Quality Improvement (CQI), benchmarking is taking healthcare to a higher level of quality comparison.” (Wilson & Nathan, )
The ability to gather useful data and display them as information is the benchmark of care, knowing what care standards are, will ensure the achievement of a benchmark.
Create a simple list of data items/processes the organization is to measure, ensure it is based on consensus. Clarify reasons for the content of the list, stating the objectives, time required, costs, advantages, impact of results for the organization upon achieving them.(Burke, 1995) By providing proof of its necessity and potential in qualitative/quantitative terms.
Find a benchmark partner (organization, groups, individuals) both within and without the organization, that would work well with staff and provide meaningful data. (This varies as it depends on types of benchmarking, be it internal, external, functional or Generic). An uncooperative group/organization can hinder progress, so also can an incompatible process or incomparable process.
Compare organizational performance with benchmark data, by collecting data, reviewing and creating a report. “correct implementation of this step will result in data that can be used directly to enhance your organization's performance. Incorrect implementation of this step could result in data that is useless or inadequate” (Burke). It is worthy to note that there are three likely outcomes are organization is A. Better (organization performs better than before benchmarking), B. Same (organization is neither better nor worse) or C. Worse. (Organization is worse of than pre-benchmarking). The review must be planned for from the very beginning as it helps to determine next steps which will be to redo/restart cycle or end.
Benchmarking can even be collaborative, in which case, it will “bring together organizations interested in creating breakthrough improvements in their processes. It also creates a learning opportunity for participants both inside and outside of the group. Most importantly, collaborative benchmarking offers a cost-effective means for uncovering and adapting best practices. It provides these means in a manner already familiar to many healthcare quality professionals-the plan-do-study-act cycle”. (Gift, Stoddart & Wilson, 1994).
Reference
Burke C. J., (1995). 10 Steps to Best-Practices Benchmarking. KPMGPeat Marwick LLP. Retrieved from https://www.qualitydigest.com/feb/bench.html
Dattakumar, R. and Jagadeesh, R. (2003), "A review of literature on benchmarking", Benchmarking: An International Journal, Vol. 10 No. 3, pp. 176-209.
Gift, R. G., Stoddart, T. D., & Wilson, K. B. (1994). Collaborative benchmarking in a healthcare system.Healthcare Financial Management, 48(9), 80-2, 84-6, 88. Retrieved from https://search.proquest.com/docview/196364974?accountid=34773
Wilson, A., & Nathan, L. (1998). Understanding benchmarks. Computertalk for Homecare Providers, 6(1), 28. Retrieved from https://search.proquest.com/docview/215685076?accountid=34773
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