benchmarking


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Benchmark

A standard against which a security's performance is compared. A benchmark is usually an index of securities of the same or similar class. Stocks are usually compared against stocks; bonds against bonds, etc. Another type of benchmark considers securities according to industry: a telecommunications stock may be compared to other telecommunications stocks. Likewise, mid-cap securities may be benchmarked against other mid-cap securities. Some indices, such as the Dow Jones Industrial Average and the S&P 500, are considered to be benchmarks for the wider economy.

benchmarking

the practice whereby a firm studies the ‘best’ PRODUCTION and MARKETING processes used by immediate competitors and firms from other similar industries so as to identify possible ways for the firm to improve its own methods. Benchmarking usually involves a number of steps: selection of critical processes that may need improvement; in depth study of other firms who perform these processes particularly well; adaptations of the processes identified so as to facilitate their implementation by the firm.

benchmarking

the process of measuring aspects of a firm's performance and comparing this measured performance with that of other firms. Benchmarking can help a firm to discover where its performance is deficient and can suggest means of improving competitive performance.
References in periodicals archive ?
By analyzing outcomes data and applying the knowledge gained to CQI and benchmarking efforts, providers can achieve the quality and cost breakthroughs necessary to succeed in the value-conscious 1990s and beyond.
Benchmarking initiatives are both quantitative and qualitative in nature and focus on measuring business process performance.
Producing benchmarking tools together with ValuSource since 1997, MGMA chose the Colorado Springs-based company because of its expertise in software development and reputation among financial professionals.
Answerthink's capabilities include benchmarking, business transformation, business applications, business intelligence, and offshore application development and support.
John's, the hospital implemented performance/comparison benchmarking in late 2002 to establish goals, measure progress, report on its progress and take the necessary corrective action when needed.
KING: Benchmarking is seeking a high standard of perfection, evaluating that standard, and applying it to an operation.
These benchmarking approaches do not fully recognize the integrated nature of life insurance company management and do not reflect the unique risks of an individual company s assets and liabilities.
When benchmarking a fund, there is grave danger for CPAs who check the fund's returns against that benchmark every quarter, and--feeling happy with the results--simply leave the benchmark in place.
We participated in a national benchmarking audit in 1996.
By definition, benchmarking is a systematic and ongoing process of measuring products, services and practices against companies recognized as best in class.
But competitive benchmarking does tend to be slightly more expensive.