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How do you compare and benchmark your business processes with industry standards and best practices?

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Business process mapping is a skill that helps you visualize, analyze, and improve the way your organization performs its activities and delivers value to its customers. But how do you know if your processes are effective, efficient, and aligned with your goals and standards? One way to answer this question is to compare and benchmark your business processes with industry standards and best practices. In this article, you will learn how to do this in four steps.

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Sheila Roberts

1 Identify your key processes

The first step is to identify the key processes that are critical for your business success, customer satisfaction, and competitive advantage. These are the processes that directly affect your value proposition, your core competencies, and your strategic objectives. You can use different criteria to select your key processes, such as frequency, complexity, cost, risk, impact, or customer feedback. You can also use tools such as value stream mapping, SIPOC diagrams, or process flowcharts to document and visualize your key processes.

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2 Find relevant benchmarks and best practices

The second step is to find relevant benchmarks and best practices that can help you evaluate and improve your key processes. Benchmarks are quantitative measures that indicate the performance level of a process, such as time, quality, cost, or customer satisfaction. Best practices are qualitative methods or techniques that represent the most effective way of performing a process, such as standards, guidelines, policies, or procedures. You can find benchmarks and best practices from different sources, such as industry associations, professional bodies, research reports, case studies, or peer organizations.

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Sheila Roberts
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Industry standards are the starting point to benchmark against and in the Business Resilience Framework it is a Resilience Foundation element for any business. It is important to be aware of the industry standards available and if there is more than one standard for a process the standard which most closely reflects customer value in your organisation should be chosen.

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3 Compare your processes with benchmarks and best practices

The third step is to compare your processes with benchmarks and best practices to identify gaps, strengths, weaknesses, and opportunities for improvement. You can use different methods to compare your processes, such as benchmarking matrices, gap analysis, SWOT analysis, or spider diagrams. You can also use tools such as KPI dashboards, scorecards, or process performance indicators to monitor and track your process performance over time. The main goal of this step is to understand how your processes compare with the industry standards and best practices and what factors influence their performance.

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Sheila Roberts
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Comparing the benchmark position against industry standards should be combined with the Resilience Profile scores so that the gap can be identified which will ensure Business Resilience is understood as well.

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4 Implement and evaluate improvements

The fourth step is to implement and evaluate improvements based on the results of your comparison. You can use different techniques to prioritize, plan, and execute your improvement initiatives, such as PDCA cycle, DMAIC methodology, or agile project management. You can also use tools such as action plans, Gantt charts, or RACI matrices to assign roles and responsibilities, set deadlines, and communicate progress. The main goal of this step is to close the gaps, leverage the strengths, address the weaknesses, and seize the opportunities for improvement.

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5 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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Sheila Roberts
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The Business Resilience Framework is ideal for benchmarking using both industry standards and the Resilience Profile. This will ensure you consider both progress and Business Resilience improvements for the organisation.

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How do you compare and benchmark your business processes with industry standards and best practices?

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1 Identify your key processes

2 Find relevant benchmarks and best practices

3 Compare your processes with benchmarks and best practices

4 Implement and evaluate improvements

5 Here’s what else to consider

Business Process Mapping

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