Disadvantages of Benchmarking
There is certain drawback of benchmarking but they are very few. The advantages outweigh the disadvantages, but it is significant to know and consider the probable disadvantages so in which corrective measures could be planned and implemented to minimize the impact of drawback. The few general disadvantages are as follows:
1. Difficulties getting agreement on what indicators are to be used.
2. Difficulties in defining the data.
3. Provides only limited information about how to correct performance shortfalls.
4. The projects could be completed quickly but the results might take much longer time.
5. Highly ambitious goals might lead to unsuccessful benchmarking process.
6. Several organizations prevent the procedure lest their weaknesses be exposed to their competitors.
7. Cultural differences might, lead to some difficulties in applying best practices as happening MNCs.