Methodological strategies for benchmarking accounting processes

The research of a long lasting competitive advantage has favoured the rise, especially over the past few years, of performance measurement systems based on the research of external comparison parameters. Once the pioneering experimental phase is over, these techniques, that have been denominated benchmarking, require an updating of the more critical methodological and conceptual points, in order to guarantee a vast diffusion among the companies. In this view, this paper presents considerations about the methods suggested in carrying out benchmarking projects. After a short description of the concept of excellence, that characterises benchmarking methodologies, particular attention will be paid to the close examination of two methodological aspects that experience indicates as being particularly critical for the success of the benchmarking projects. The first one regards the choice of a multidimensional performance vector and the definition of the conditions of comparability between companies pertening to different industries, the second points out the problem of codification and adoption of best practices. Finally, we will propose a model for benchmarking that links together these two points, the comparison of performances and the identification and adoption of best practices on which performances are grounded. The considerations developed hereunder, also if they can be extended to other types of processes, they are however referred, in particular, to the accounting processes. Empirical evidencies, as well as conceptual issues, are founded on a benchmarking network managed inside Bocconi University that groups more than 50 companies interested in benchmarking their processes. The Excellence in Finance project, promoted by CESAD, Centro Studi di Amministrazione e Direzione di Impresa (Centre for studies on company administration and management) of the Bocconi University, started in 1994 and groups 30 large companies (italian companies as well as italian subs of multinational companies) (1).