Strategic Benchmarking In Improving Project Management Performance

Abstract

Organizations must ramp up their performance rapidly to remain competitive in business environments today, and the pace is further accelerated in sectors where benchmarking is commonplace, where businesses rapidly and continuously learn from one another. Markets nowadays are dynamic and competitors are moving targets. Thus, failing to identify the future rate of improvement of competitors, companies may set themselves targets to find that the goalposts have moved and even find themselves further behind or less able to catch up. This forces the projects to have a very effective management in order to compete or at least remain in today’s dynamic business environment. Benchmarking therefore, has been recognized as one of the most responsive evaluation tool for performance improvement within organizations by creating a culture of continuous improvement from learning best management practices. However, although benchmarking with its three types which are process, performance and strategic benchmarking is the search of best practices that will lead to superior performance in some business activity.  The two former are more short-term in their scope and produce quick results. In which process benchmarking compares operational processes and performance benchmarking compares product lines, marketing and sales to determine how to increase revenues. The Strategic benchmarking takes a long-term view of company direction relative to the future strategies of competing companies. This paper presents how strategic benchmarking principles can be applied to improve project management process and performance by examining the long-term strategies and general approaches that have enabled high-performers to succeed. It involves considering high level aspects such as core competencies and improving capabilities for dealing with changes in the external environment. The benefits and challenges of strategic benchmarking management of projects are also discussed