Benchmarking is the process of measuring the performance of a company’s product or service, or processes against those of other businesses. The goal of benchmarking is to identify internal opportunities for improvement.
Through benchmarking you can study top performers to discover what makes that top performance possible, and then by comparing that process to how your business operates, you can implement changes that will yield significant improvements.
However, benchmarking can also be done with your own company by comparing for example one exercise with another.
There are different types of benchmarking: competitive, internal and functional. The common objective of all three types is to help companies look outside their own organisation or the current period, to their competitors or to other sectors.