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A very interesting point I would suggest regarding the lack of sensibility in utilizing a benchmark from a world-class company when the gap is too large. I think that there is definitely value in understanding what is possible regardless of what your starting point is in the process. Here is how I would use the information to drive quality improvement in my business even with a significant gap in performance.
I worked for a company that was turning their physical inventory about once a month, or twelve times per year. We were benchmarking against a world-class company that was turning their inventory more than once a week. There was a significant gap between where they were and where we were starting.
I think it is really how you present the challenge internally in keeping the goals realistic. We did not plan on getting from turning our inventory from once a month to once a week overnight. Our plan was to make substantial incremental improvement understanding now what world-class companies were capable of in managing their inventory. Do you feel that benchmarking off of world-class performers is unrealistic? Please explain your response.
Word count: 400
Reference/Citation: Harvard
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