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partner company could use the data to gain



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partner company could use the data to gain 
competitive advantage. We then sent our 
analysis to the partner companies to verify the 
facts and figures we’d gathered, and get their 
feedback on Darringtons’ operation. 
From the data, it soon became glaringly obvious 
that aspects of the business were in dire need of 
innovation, such as our manufacturing operation. 
And although we were among the best for R&D, 
we did badly on capital investment in equipment 
and premises, and also in customer satisfaction, 
which we were unaware of. We’d evidently 
worked in the same way for years without 
examining closely whether we were truly effective 
and competitive. 
As a result of benchmarking analysis, we looked 
at ways of improving certain areas, but soon 
realised the capital investment needed would be 
huge. The alternative was to outsource 
production of a high percentage of our products, 
which would cut overheads and capital spending 
dramatically. We chose the outsourcing option. 
This enabled us to redirect resources so that we 
could create innovative solutions to suit our 
customers’ needs and market them effectively. 
Outsourcing also resulted in more accurate profit 
analysis, which led us to make changes to our 
mix of products. 
Looking back over the whole process, there are 
things I would have done differently. I think we 
should have implemented benchmarking as soon 
as our problems became apparent, but there was 
a lot of fence-sitting in the early days as people 
were hesitant about committing to a process they 
had no experience of. But people couldn’t argue 
with the benefits that the process would 
undoubtedly bring and personally, I was 
determined not to waste time. In fact, it turned out 
to be the catalyst we needed for major 
operational and cultural change at Darringtons. 
line 67 



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