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 ?
However, supply chain functions have yet to regularly identify and communicate the financial benefits that result from benchmarking projects.
APQC's survey also reveals a further advantage supply chain functions have over others: these functions tend to have employees with more experience in benchmarking activities than their peers.
Benchmarking is definitely one of the criter ia for measuring process of products and service processes in the most leading companies.
It has also been proposed that the multiple definitions which were proposed, stated diverse stages in the evolution of benchmarking, and based on the definitions, they had concluded that benchmarking had passed through four important stages of evolution [8].
The first is Spendolini, (1) a good general reference book, and the second is Dattalcumar and Jagadeesh (4) which provides a comprehensive classification of benchmarking articles.
Today, benchmarking is an important consideration for health care organizations.
7) benchmarking can be used in any type of organization respectively enterprises, units from a certain enterprise or public services, that wants to use benchmarking to improve their competencies, efficiency and/or competitiveness.
The concept of benchmarking is seen as an evolving phenomenon, a dynamic phenomenon.
Coe (1999) explored the practice of benchmarking in the United States by comparing the North Carolina Benchmarking Project with the ICMA Comparative Performance Measurement Consortium.
Ammons, Coe, and Lombardo (2001) also compared three benchmarking projects in the United States, identifying a gap between expectation and result.
Advisers should take the lead in designing the benchmarking process and shaping the parameters of the discussion.
And, although the benchmarking should first consider which recordkeeper and investment manager will be best for the plan itself, advisers might want to look beyond that and consider which firms offer the best services and assistance to the adviser.