What does benchmarking primarily involve?

Benchmarking primarily involves comparing a company's performance against high-performing organizations, which serves as a standard or reference point. This practice allows companies to identify best practices, understand performance gaps, and set goals to enhance their own processes and efficiencies. By analyzing how top competitors or industry leaders operate, an organization can leverage insights to improve its own performance, thereby fostering continuous improvement and strategic growth.

This approach yields valuable metrics and trends that can guide decision-making, resource allocation, and strategic planning. It also encourages a culture of excellence by aiming for benchmarks set by those at the forefront of the industry.