Organizational success is dependent upon how well the organization understands the reasons it is in business, how clearly it identifies its customer’s needs, and how well it uses resources in its operations to produce desired results. Benchmarking is a tool that can be effective in assisting an organization to obtain greater understanding of its processes and to achieve better performance.

Benchmarking uses comparative analysis to (1) measure the effectiveness of the processes an organization uses in its activities and (2) identify areas best targeted for improvement efforts. Repetitive benchmarking shows the organization how effective its improvement efforts are over time.

The value of benchmarking and best practices to the construction industry can no longer be questioned. Evidence of impressive hard-dollar results from benchmarking programs is plentiful in current business literature. Recent research in the construction industry has statistically confirmed that increased best practices use is directly correlated with reduced cost growth. Benchmarking across industries has shown that companies benchmarked in the bottom 25% are achieving profits levels that are one tenth those achieved by the top 25%.

The first step in benchmarking is to identify key best practices that the industry deems critical for business success and growth and to develop a series of Construction Best Practice Guides. Click here to view the guides.

This effort is being sponsored by major construction-related organizations including the Associated Builders and Contractors and PKF North America. Organizations interested in sponsoring the development of any of the Guides yet to be developed are encouraged to contact the CICMP at 864-656-3878.