Benchmarking Analysis, TQM and Management Accounting: Some thoughts on their linkages

Abstract

In a complex, dynamic, fast-changing environment, companies must strive for superiority in order to survive. Competitive edge cannot be achieved or maintained by setting goals based on past or even present performance. Benchmarking is a management practice that can be used to pursue excellence. It does this by identifying, comparing, and emulating best practice wherever it occurs. TQM (total quality management) philosophy offers excellence in 'continuous improvement' programs in organizations. Management accounting data play an important role in both of these approaches that managers use. This paper offers some thoughts on the linkages among benchmarking, TQM and management accounting.