In this third blog Operational Excellence Power of Benchmarking we add a frequently underestimated lever: benchmarking. Benchmarking is not a ranking exercise. It is a control principle: it gives meaning to KPIs, makes performance comparable, and creates focus in improvement.
Operational Excellence (OpEx) is widely used as a term, yet rarely applied with precision. In blog 1/5 What Wine Teaches Us About Operational Excellence; Domain Expertise vs Cross-Industry Experience? we established the foundation: performance is not luck and not “hero work”; it is the outcome of deliberate, end-to-end control of variables. In blog 2/5 Wat is Operational Excellence? De basis van structurele prestaties we defined OpEx as a capability: the organizational ability to deliver consistent customer value at controllable cost, with predictable performance, while remaining adaptable to changes in markets, technology, and regulation.
What benchmarking really means in OpEx
Benchmarking is performance comparison that leads to better decisions. The critical condition is comparability. Without consistent definitions and measurement logic, benchmarking becomes noise. In Operational Excellence, benchmarking serves three goals.
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Normalize: the same KPI means the same thing everywhere (definition, scope, timing, data source).
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Prioritize: identify the largest performance gaps and the gaps with the highest value to close.
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Learn: understand which practices (process design, control routines, systems, behaviors) drive top performance and translate them into your context.
Benchmarking is therefore not reporting. It is a mechanism to steer your improvement agenda.
What to benchmark: not only outcomes, but the system
Many organizations benchmark only outcomes (cost per unit, OTIF). That is too late and too narrow. OpEx benchmarks a system on at least three layers.
A. Lagging indicators (outcomes: what happened?)
Outcome KPIs such as:
- OTIF / service level (last month/quarter)
- Scrap %, complaints, yield
- Close duration / audit findings
- DSO/DPO, working capital, cash impact
They are essential, but they tell you the problem after it already hit.
B. Leading indicators (drivers: what will happen if we do nothing?)
Predictive KPIs strongly correlated with the outcome, such as:
- planning adherence / schedule attainment
- forecast bias and forecast accuracy
- first-time-right in critical steps (invoicing, picking, changeovers)
- master data quality, exception rate, backlog in resolution
Leading indicators give you time to intervene early.
C. Execution indicators (discipline: are we doing what we said we would do?)
Control and adherence KPIs such as:
- standard work adherence, training completion by role
- control execution rate (e.g., three-way match, reconciliations on time)
- workflow compliance (approvals, authorizations, evidence retention)
The core logic: lagging tells you whether you won the game; leading tells you whether you are winning it; execution tells you whether you are even playing according to plan.
KPIs as a control system (not a dashboard)
OpEx requires feedback loops: measure → interpret → decide → execute → measure impact. KPIs are the language of that loop—if designed for steering.
A KPI set works only when:
- definitions are fixed (one truth)
- ownership is explicit (who steers, who improves, who decides)
- cadence is clear (daily/weekly/monthly)
- deviations trigger action (root cause, countermeasure, impact verification)
Benchmarking accelerates this by setting realistic targets and ranges, replacing “gut feel” with reference.
Examples of benchmarking across industries
Benchmarking works everywhere, but KPIs differ per system.
| Manufacturing | – OEE (lagging) + breakdown frequency, PM compliance (leading/execution) – scrap/yield (lagging) + process capability / first-pass yield (leading) |
| Logistics / warehousing | – OTIF (lagging) + pick accuracy, backlog, cut-off adherence (leading) – cost per shipment (lagging) + exception rate, master data quality (leading) |
| Finance & control (R2R / P2P / O2C) | – close duration and audit findings (lagging) – % reconciliations on time, % three-way match, dispute cycle time (leading/execution) |
The pattern remains constant: outcomes + drivers + discipline. That is OpEx benchmarking.
How to implement benchmarking without bureaucracy
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Start with a minimum KPI set (8–15 KPIs)
Small, hard, end-to-end representative. For each KPI define: formula, source, owner, cadence, target, decision rules. Avoid lack or inconsistent definitions: you debate numbers instead of performance. Too many KPIs: everyone reports, nobody steers. No owner: “owned by everyone” is owned by no one; foster teamwork, commitment. Remember: Only lagging KPIs: you steer too late! -
Mature internal benchmarking first
Compare sites/teams with the same definitions. Internal spread is often your fastest learning source. -
Add external benchmarks selectively
Use external benchmarks to calibrate ambition—not to copy blindly. Validate context (mix, service model, regulation, maturity). -
Link benchmarks to improvement mechanisms
Benchmarking without a mechanism is reporting. Link it to a backlog, value tracking, and governance. Benchmarking without context: wrong conclusions, wrong actions. -
Build fixed cadences
– daily/weekly leading/execution routines
– monthly performance review on lagging outcomes
– quarterly refresh of targets and benchmark data
Key takeaways – Benchmarking
- Benchmarking is not ranking; it is a control mechanism that gives KPIs meaning.
- Use both lagging and leading indicators; otherwise you steer too late.
- Benchmark the system: outcomes, drivers, and execution discipline.
- Start internally (definitions + comparability), add external selectively.
- KPIs must drive decisions: cadence, ownership, action, and impact verification.
Food4TheBrain (2026)
Operational Excellence, Building process clarity today for the value chain of tomorrow.
info@act2vision.nl | +31 (0) 686 698 026 | Amsterdam, Netherlands, EEA
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