18 Oct 2012


Benchmarking is a process whereby you would compare a process in a company to the same process that another company undertakes. This could be any part of the customer experience, logistics, reporting methods, etc etc. It's done to find efficiency savings and hopefully money savings!

It's a complicated process which can be undertaken by getting companies to work together (unlikely!) or by using an independent agent to assess the companies that would like to take part without any of the possibly sensitive company information being leaked to rivals.

It is assumed that both parties will benefit equally from the process. Although I always believe one company will always benefit more than the other.

So what's this got to do with me I hear you asking. Well... after reading Maria's post on how comparing one person's budget to another is dumb, I was a little shocked! I have always found looking at other people's budgets quite enthralling. You can really get a feel for someone's passions from what they spend their cash on. You can sometimes learn a thing or two, or be inspired. The last one is where I normally sit, because I go, how the heck do they spend that little on that.

It's not just budgets either, it's when I'm speaking to people. A few months ago my Dad told me about how his gas/elec bill is less than £40 a month. I was flabbergasted as mine has kept rising and rising over the months. So I pressed him for details and picked up some great tips in the process.

It's really this enquiring that brings about the results. So don't feel your being too nosy I'm sure plenty of people would love to share!

If you really want a kick up the backside why not compare yourself to Mr MoneyMustache, I exported the table to Excel and then divided all expenses by 1.6 to turn $'s - £'s I then noticed that in most cases I am pretty crap and the ones I was better than MMM were ones out of my control like the property taxes - although comparing taxes across different countries is probably silly anyway :D

For more information on benchmarking see wikipedia or check out your local library.

If you like this why not follow me on Twitter @domliveswell

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