Why Benchmarking?

Benchmarking is the approach of continuously measuring products, services, and practices against tough standards set by competitors or renowned leaders in the field.

Managerial Communication

• Demonstrating: Communicate with reports and benchmarks to track progress... More

 Case in Point  Using the Best Practice at GE:

The Trotter Scorecard

Many GE business units employ a tool called the Trotter Matrix to check on their use of best practices. The scorecard was developed by Lloyd Trotter, who ran the Electrical Distribution and Controls side at GE. He listed six desirable attributes for each of his plants and then scored each attribute... More

 Case in Point  

Benchmarking Employee Performance at GE

Jack Welch does a good job of illustrating the need for constant reassessment and employee benchmarking when he says, "If the rate of change inside an organization is less that the rate of change outside... their end is in sight". One of the tools used by Welch to ensure constant reassessment and benchmarking is the annual review undertaken by every GE executive and staff member. Once a year, every employee's performance evaluated and awarded a numerical ranking of between 1 and 5. "The implicit understanding is that both the individual and his or her score are moving up or it's time to leave the company.²"

5 Keys to Building a Great Company

By: Narayana Murthy, Founder of Infosys

• Benchmarking: Your company has to benchmark itself on a global scale in every area including sales, production, human resources, R&D and finance. It creates an open and confident environment where first-raters recruit first-raters.... More