Functional benchmarking
Functional benchmarking compares a function or process with strong practice, potentially outside the organisation’s industry. Examples include logistics, scheduling or customer-contact processes. It can produce new ideas beyond direct competitors, but differences in demand, regulation and service requirements must be understood. Define the process boundary and evaluate whether the practice can transfer rather than copying a headline measure.
Worked example
A hospital studies airline scheduling methods to learn about capacity coordination, while recognising that patient uncertainty differs from passenger bookings.
Common mistake
Functional or process benchmarking is not restricted to competitors in the same industry.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | APM | Direct | September 2026–June 2027 |