Benchmarking is the competitive edge that allows organizations to adapt, grow, and thrive through change. It is the process of measuring key business metrics and practices and comparing them within business areas or against a competitor, industry peers, or other companies around the world to understand how and where the organization needs to change in order to improve performance which can be either incremental (continuous) improvements or dramatic (business process re-engineering) improvements. That might mean tweaking a product’s features to more closely match a competitor’s offering, or changing the scope of services you offer, or installing a new customer relationship management (CRM) system to enable more personalized communications with customers. There are two basic kinds of improvement opportunities: continuous and dramatic. Continuous improvement is incremental, involving only small adjustments to reap sizeable advances. Dramatic improvement can only come about through reengineering the whole internal work process. There are four main types of benchmarking: internal, external, performance, and practice.

Vikrant Ojha

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