Benchmarking is a technique organizations use to gauge its performance against other organizations, uncover how competitors achieve their performance levels and use the information to improve its own performance. Items that can be benchmarked include strategies, operations and processes.
Benchmarking empowers companies to enhance its competitiveness to perform better than its competitors and discover new ways of thinking and operating. It allows organizations to refine processes and performance to make them better, faster and more cost effective. Benchmarking goes beyond competitive analysis to understanding not just the competitor’s output, but also the process of obtaining the output.
Benchmarking benefits include:
Benchmarking helps uncover best practices and processes and finds out what exactly is inherent in superior performance. It helps companies outperform competitors.
Fosters Innovation and Improvement
By constantly looking for and implementing better ways of doing things, benchmarking promotes a continuous improvement mindset.
Increases Customer Experience
Improving organizational operations increases efficiency and enhance the customer experience and customer retention.
Simplifies Business Processes
Simplifying processes and procedures often leads to cost reduction.
Better Understand Competitors
Benchmarking helps organizations stay in the know and informed on industry trends as it keep a close watch on what competitors do.
Benchmarking is the base for improvement. It enables companies to adopt change, evolve and progress.