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ACCA Strategic Professional · Advanced Performance Management · Performance improvement models and techniques

Orrin Pharma follows a benchmarking project in this order: select the process, identify comparison partners, collect and analyse data on the performance gap, then implement improvements. Which step is most often omitted, causing benchmarking to produce data but no lasting benefit?

The step most often omitted is understanding why the best performer achieves its results, then adapting those practices and monitoring the change. Without root-cause understanding and implementation, benchmarking only reports a gap in numbers and delivers no lasting improvement.

  1. AChoosing a partner with a larger turnover
  2. BUnderstanding why the best performer achieves its results, then adapting and monitoring the changeCorrect
  3. CCalculating the gap as a percentage
  4. DPublishing the partner's results to all staff

Explanation

Benchmarking only adds value if the underlying practices that drive superior results are understood, adapted to the organisation and monitored. Numbers on the gap alone do not change performance. Partner size, percentage gaps and publication are not the critical missing step.

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