APQC the forgotten resource for beNchmarks

In my years as a consultant, I am increasingly surprised by companies that do not know about APQC in the implementation of their processes and therefore do not make use of the vast number of resources it offers. What I see in most of them is that the survey of processes is carried out in a more or less empirical way, in some cases with basic guidelines and as we would popularly say "inventing the wheel" again.

With APQC we leverage the experience and accumulate knowledge of thousands of companies of all types of industry and size around the world. After getting to know it, it is almost prohibitive not to make use of these resources.

But what is APQC?

The American Productivity & Quality Center (APQC) is a leading nonprofit organization in benchmarking, knowledge management, and business process improvement. Founded in 1977, APQC provides frameworks, methodologies and best practices to optimize your performance and foster innovation. APQC also provides research, benchmarking databases, and collaborative networks, enabling organizations across industries to identify opportunities for improvement and implement data-driven strategies to improve efficiency.

APQC's relevance lies in its ability to standardize and improve business processes through frameworks such as the Process Classification Framework (PCF), which allows me to structure, analyze, and compare my company's operations against global standards. By providing reference tools and sharing best practices, using APQC saves a considerable amount of time while also offering a point of comparison that serves as a north for improvement and growth.

What happens when there is no common process classification framework?

As mentioned above, many organizations conduct process surveys empirically. Without a clear structure in each area of the company, methods can be defined differently, leading to inconsistencies and interfering with collaboration between teams. This results in duplication of efforts as different departments may be performing similar tasks without coordination. Problems also arise in internal communication because without a shared language, employees will interpret processes subjectively. In addition, integrating systems such as ERP, CRM and automation instruments become complex when there is no standardized model.

On the other hand, if processes are not well defined, establishing KPIs and key metrics becomes a challenge. Without a framework like APQC, many companies lack clear indicators of success, making it impossible to evaluate performance and make data-driven improvements. In addition, without a common structure to compare with other companies, benchmarking loses effectiveness. As a result, many decisions are made based on subjective perceptions rather than objective, measurable data. And it is precisely on the benchmark that I want to focus on this article.

What is a Benchmark?

A benchmark is a systematic comparison process in which a company evaluates its performance, products, services, or processes against those of its direct competitors or industry standards. Its objective is to identify the best practices, detect opportunities for improvement and establish strategic objectives based on real data.

Benchmarking can be done internally (comparing different areas of the same organization), competitive (comparing with major competitors), or functional (evaluating similar processes in different industries to gain new perspectives).

1 Comparison between my company and other companies in the same industry

The importance of benchmarking lies in its ability to provide valuable information for strategic decision-making, as it allows the identification of strengths and weaknesses in relation to the market with a view to optimizing operational efficiency, improving customer experience and strengthening competitiveness.

Making a simile with a diet, I like to think that the benchmark works like a scale that tells me how well I am doing, what is my deviation from the best in the industry to take corrective actions in time.

Advantages and differentiating factors of the benchmark with AQPC

Making benchmarks with AQPC offers unique advantages that are difficult to match with any other frame of reference. Among the most important we have:

Standardization with the process Classification Framework (PCF)

As I mentioned earlier, one of APQC's main differentiators is the use of its Process Classification Framework (PCF), which provides a common structure for comparing performance across companies. Unlike other benchmarks that can be more generic or subjective, APQC allows you to measure performance based on a clear and well-defined taxonomy of business processes, ensuring accurate and relevant comparisons.

While many benchmarks only offer isolated performance metrics, APQC allows you to compare each process against a recognized standard, providing a comprehensive view of organizational functioning. It is comparing apples to apples as it is popularly said.

Comparison of processes, not just indicators

Linked to the previous point, many traditional benchmarks focus solely on comparing financial or operational performance indicators without analyzing the underlying structure of the processes. APQC, on the other hand, allows you to compare how my company executes its processes in relation to industry best practices.

For example, instead of simply measuring the average cost per transaction in a procurement process, APQC breaks down each step of the procurement process, allowing you to identify specific opportunities for improvement and optimization.

Global and sectorized database

On the other hand, APQC has one of the most extensive benchmarking databases in the world, with information collected from companies from different sectors, sizes and geographical locations. This allows me to compare my company's performance with companies in the same sector, in other similar sectors or with world-class companies.

Unlike other benchmarking models that may be limited to certain industries or regions, APQC provides access to globally validated information, allowing for a more objective reference aligned with high-performance standards. This is a very difficult advantage to match.

Actionable metrics and best practice benchmarking

APQC's benchmarking approach is not only limited to performance metrics, as is traditional, but also includes benchmarking best practices. This means that not only is a company's performance compared to that of its competitors, but specific strategies and methodologies used by the best-performing companies are also identified.

Access to Benchmark Studies

Unlike other benchmarking providers that only offer static reports, APQC allows access to benchmark studies that include detailed analysis on market trends and projections. This helps to anticipate changes in the business environment and prepare continuous improvement strategies before problems become critical. In addition, APQC's data-driven approach helps me avoid biased or subjective interpretations, as each metric is backed by reliable information and rigorously validated methodologies.

Actionable comparisons with implementation strategies

Unlike other benchmarks that only provide data without context, APQC offers specific implementation strategies based on real success stories, allowing my company to transform benchmarking findings into concrete action plans.

Adaptability to businesses of any size

While some benchmarks are designed only for large corporations, APQC allows companies, no matter their size, to access relevant comparisons, which makes it useful in such a wide range both for growing startups as well as multinational companies.

Conclusion

After exhaustively exploring all the possibilities that APQC offers in terms of process measurement and optimization, it becomes clear that not taking advantage of these resources would be a real waste of effort and time. I have been able to witness first-hand how companies that use APQC manage to better structure their processes, make more informed decisions and increase their competitiveness based on tangible data. It's not just about measuring performance indicators, it's about understanding how things are developing internally and comparing them to the most demanding industry standards.

In a business environment where efficiency and continuous improvement are crucial elements, continuing to "reinvent the wheel" without a solid frame of reference is a luxury that no company can afford. APQC not only provides a reliable basis for comparison but also offers concrete strategies for implementing improvements effectively. So, if you haven't considered APQC in your measurement tools so far, now is the ideal time to start doing so. You can visit their website