Internal Benchmarking System



Many times, organizations are unsure if they are performing to their potential and seek the best way to find answers to some challenging questions like

  1. How productive is my labor force?
  2. Who are my best practice partners/units?
  3. How does my operating unit's productivity compare on a local / regional / national level compared to best practice partners/units?
  4. What is my optimum improvement potential for each non-best-practice operating unit?

There are several performance measurement tools in the market. Most of these tools create a "performance mean" and create employee expectations based on the organizational performance average. This method is a poor motivational tool in that it only highlights the poorest performers and does little to motivate average or above average achievers. In other words, no tool was designed to effectively motivate the workforce to their optimum performance potential. What is required is a tool that motivates all employees in an organization to achieve their highest performance potential.


Planmatics recognized this strong deficiency and in response, designed the Internal Benchmarking System to measure employee performance relative to the highest achievers in their unit. This robust modeling tool serves to answer all the questions for your operating unit.


The Internal Benchmarking System (IBS) is a quantitative technology for measuring the relative efficiency of your production units such as delivery dispatch centers, service centers, mail sorting centers, and retail units. Planmatics' IBS program is based partly on data envelopment analysis methodology, a data modeling technique used to identify world class performers and support performance management in a continuous improvement environment. This is a statistical optimization technique for benchmarking because it identifies "frontier units" or the highest or optimal achievers in each category, and outlines improvement targets for the others.


This tool is an effective method for measuring employee performance, given a set of inputs and outputs, on an efficiency basis. By recognizing only the highest performers in the group, and ranking each employee as efficient relative to the highest performer, IBS will help client organizations realize their maximum performance potential. IBS is designed to analyze organizational performance on both an internal and external level. Managers will be able to review employee performance within a specific unit, compare this unit to related units across the organization, and then compare the organizational performance to broad industry standards. This tool has been proven successful in the international postal community. It is ideally suited for this and other service-based organizations such as banks, schools and labor agencies.


IBS revolutionizes the practice of workforce motivation. By highlighting "optimal" operational efficiency on an internal and external basis, new production targets can be realized.