Benchmarking can allow you to:
- Gain an independent perspective about how well you perform compared to other companies.
- Drill down into performance gaps to identify areas for improvement.
- Develop a standardized set of processes and metrics.
- Enable a mindset and culture of continuous improvement.
- Set performance expectations.
Why benchmarking is important for performance measurement?
Benchmarking requires an understanding of what is important to the organization (sometimes called critical success factors) and then measuring performance for these factors. The gap between actual performance and preferred achievement is typically analyzed to identify opportunities for improvement.
How can benchmarking be used as an effective performance management tool?
Benchmarking reveals a company's relative cost position and identifies opportunities for improvement. Gain strategic advantage. Benchmarking helps companies focus on capabilities that are critical to building strategic advantage. Increase the rate of organizational learning.
