This refers to the structured process of comparing performance, internally or externally, against best practice performance levels.
Benchmarking takes the organisation’s performance metrics (for example number of units produced per employee) and compares these metrics with other organisations or business units. Where significant gaps are identified, the root cause of these differences is analysed and improvement actions are commissioned.
Benchmarking is a term normally found in strategic management and performance management. Explore our learning zone to discover more