Legal issues in benchmarking

The pursuit of organisational excellence requires the efficient acquisition and use of knowledge, but this is potentially problematical from a legal context. A particular case in point is benchmarking, a required aspect of the EFQM Excellence Model but which is potentially contrary to intellectual property law and competition law. Knowledge acquired through the practice of benchmarking constitutes a diverse range of potentially and commercially exploitable information. The contribution to organisational excellence by the successful transfer of knowledge to companies is potentially major. A methodology through which companies can receive and subsequently exploit knowledge is through the practice of benchmarking. Benchmarking is an organisational improvement methodology centred on measuring current practices and comparing exogenous entities and subsequent implementation. A central feature of benchmarking as it is practised in the West at present is information flow that takes place between benchmarking partners through a variety of mechanisms including informal undertakings or collaborative efforts. This paper examines the interface between benchmarking and the law, specifically intellectual property and competition law.