What does 'benchmarking' involve in TQM?

Benchmarking in Total Quality Management (TQM) involves comparing processes and performance metrics with leading organizations, rather than just focusing on competitors. This practice allows an organization to identify best practices within its industry or even in unrelated industries, fostering a broader perspective on performance improvement.

By engaging in benchmarking, organizations analyze their own performance relative to the best in class, which helps them identify areas for improvement, set realistic performance goals, and adopt innovative strategies or practices that have proven successful elsewhere. This systematic approach encourages continuous improvement, which is a core principle of TQM.

The focus on leading organizations rather than merely competitors emphasizes the drive for excellence and not just maintaining a competitive edge. This can result in higher quality products or services and enhanced customer satisfaction.