The origin of benchmarking management rules

Benchmarking originated in the late 1970s and early 1980s. At that time, Japan became a model of the world business community. In the movement of learning from Japan in the United States, American Xerox Company first opened up a management method that they later named benchmarking. After long-term practice, Xerox defines benchmarking as a continuous process of comparing products, services and practices with the most powerful competitors or industry leaders. Its core is to improve products (including services) and technological processes with the highest standards in the industry or the standards of the biggest competitors as the goal.

Since the late 1970s, Xerox, which has maintained a monopoly position in the world copier market, has encountered all-round challenges. Canon, NEC and other companies can make a profit by selling products at the cost price of Xerox. The product development cycle and developers are also 50% or less shorter than Xerox, and the market share of Xerox has plummeted from 82% to 35%. Facing the threat of competition, Xerox took the lead in launching a campaign to learn from Japanese companies and carried out extensive and in-depth benchmarking management. Through all-round centralized analysis and comparison, Xerox found out the operating mechanism of these companies, found out the gap with Canon and other major competitors, comprehensively adjusted its business strategy and tactics, upgraded its business process to the highest standards of its competitors, and quickly received results and regained its lost market share.

Since Xerox achieved great success in benchmarking, benchmarking has spread like wildfire and been adopted by more and more companies, especially American companies. Benchmarking management is a management tool that can arouse new ideas and stimulate innovation, which is equally useful for both large companies and small enterprises. ExxonMobil Oil Company achieved annual sales of $232 billion in 2000 through a five-year benchmark plan.

1992 At the beginning of this year, Mobil Oil conducted a service quality survey involving 4,000 customers related to its own service station. This result is a huge impact on Mobil: only 20% of the respondents think that price is the most important. The remaining 80% want the same three things: friendly staff who can help, quick service and recognition of their consumption loyalty. In these respects, there is still a big gap between the current situation of Mobil and the requirements of its customers. The results of the survey made the company's top management determined to make Mobil a big change.

Mobil organized professionals to inspect its 8,000 gas stations all over the United States and began to consider how to transform them. As a result of the discussion, it was agreed that benchmarks should be implemented. To this end, the company set up three teams composed of personnel from different departments, named after speed (operation), smile (customer service) and comfort (customer loyalty), taking learning best practices as the benchmark of the company, and trying to make customers realize that refueling is also a pleasant experience.

The speed team found Penske, which is famous for its fast and convenient gas station service in the Indy500 competition. The speed team carefully observed how Pan Shiqi refueled the cars passing through the fast lane: the team wore uniform, detailed division of labor and tacit cooperation. The speed team also learned that Pan Shiqi's success was partly attributed to the use of electronic headphones, which enabled each team member to contact colleagues in time.

The smile team inspected all the service links of the Ritz-Carlton Hotel to find out how the hotel achieved unusual customer satisfaction. It turns out that Carlton employees deeply remember that their mission is to take care of the guests and make them comfortable. Smile Group believes that Mobil can also establish employee-oriented values through various trainings to achieve its goals.

The appeasement team went to the "home store" to find out why there are so many repeat customers in the store. Here, they learned that the most important person in the company is the person who deals directly with customers. Without dedicated employees, it is impossible to get lifelong customers. This means that enterprises should devote their time and energy to how to recruit and train employees. In Mobil, front-line employees who sell company products and deal with customers are traditionally considered as the most insignificant people in the company.

The appeasement team's investigation has changed the company's concept, making leaders think that their role is to support front-line employees and let them pass on excellent service and smiles to customers and outside the company.

On this basis, Mobil formed a new concept of gas station-"friendly service". Mobil conducted this experiment at 80 service stations in Florida. "Friendly service" is very different from its traditional service mode. Customers who want full service will be greeted by the waiter with sincere smile and greetings when they arrive at the gas station. All the waiters are dressed in neat uniforms and equipped with electronic headphones, so that customers' needs can be conveyed to the cashier in the convenience store in time. Customers who want quick service can drive in the special passage outside the station, and it only takes a few minutes to complete the whole process of car wash charging.

The initial return of "friendly service" is exciting, and the average annual income of gas stations increases by 10%. 1997, "friendly service" has been extended to all 8000 service stations of the company.