CBI unveils benchmarking plan
Monday 23 October 1995
The Confederation of British Industry is to use its annual conference in two weeks' time to launch a national "benchmarking" service for companies in conjunction with IBM and the London Business School.
The service will use a computer database to compare companies' performance with the best in their industries.
Benchmarking has become one of the centrepieces of the Government's competitiveness drive, which is being overseen by Michael Heseltine, the Deputy Prime Minister.
The Department of Trade and Industry is developing its own complementary service, targeted at smaller companies than the CBI scheme - those with fewer than 60 employees.
Tim Eggar, the industry minister, claims no other country will have what he describes as "user-friendly" benchmarking systems on such a large scale. He describes them as "self- check mechanisms."
The theory is that by ranking themselves against competitors on a range of criteria, companies are provided with an essential first step to identifying what they need do to improve their competitiveness.
IBM and the London Business School have done a detailed assessment of corporate best practice in more than 600 manufacturing companies in the UK, Germany and the Netherlands. This database is being used to provide the performance benchmarks.
The services will be operated on personal computers through the CBI, Business Links, government offices and trade associations. The service will take about two days to complete. It will begin with a questionnaire, followed by visits to the company from specialists who assess performance against the database, which has been effectively given to the employers' organisation.
Both the DTI and the CBI are to charge for their services, with the CBI fee expected to be about pounds 1,000.
The Government's enthusiasm for benchmarking is based on studies that show that Britain has its fair share of world-class companies in size and quality of service but an unusually large number of laggards as well, which drag down national performance compared with the chief competitor countries. In the UK, companies have a comparatively good record on customer service, but firms generally compare poorly on factors such as degree of automation, equipment layout in factories and employee involvement.
- 1 Rihanna's Met Gala dress took one Chinese woman 2 years to make, was reduced to omelette meme in 2 seconds
- 2 Qataris pledge to expand Canary Wharf
- 3 #JeSuisEd: People share photos of themselves eating awkwardly in solidarity with Labour leader
- 4 Women think Irish men are the sexiest, survey finds
- 5 Florida couple forced to register as sex offenders for having sex on public beach
#JeSuisEd: People share photos of themselves eating awkwardly in solidarity with Labour leader
Florida couple forced to register as sex offenders for having sex on public beach
UK election candidates: 'Nasty party' Ukip faces fresh questions on eve of vote
Who should I vote for in the general election? Take The Independent's interactive quiz to find out which party's the right choice for you
Ohio 'Shawshank Redemption' fugitive Frank Freshwater arrested after 56 years on the run
In defence of liberal democracy
General Election 2015: Post-election 'shambles' looms as 70 per cent of voters say SNP 'should not be able to veto UK government policies'
The Rothschild Libel: Why has it taken 200 years for an anti-Semitic slur that emerged from the Battle of Waterloo to be dismissed?
General Election 2015: UK will be 'run for the wealthy and powerful' if Tories retain power, Labour warns
General election live: SNP suspends two members for disrupting Labour rally
General election live: Booths open at 7am across the country on polling day
iJobs Money & Business
£60000 - £70000 per annum + benefits : Ashdown Group: A highly successful, glo...
£25000 - £30000 per annum + benefits: Ashdown Group: A global leader operating...
£27 - 35k + Bonus + Benefits: Guru Careers: A Management Accountant is needed ...
£40-50k + Benefits.: Guru Careers: A Project Manager / Business Analyst is nee...