The goal of benchmarking is to innovate by incorporating best practices. It is not just an imitation game. It consists in identifying, understanding, and learning from alternative processes and practices that drive superior performance (in operations, sales, etc). This can be done internally by comparing similar activities within the client’s organization, or externally by comparing with competitors and in particular the so-called best-in-class companies.
- Identify key performance metrics
- Choose companies or internal areas to benchmark
- Collect data on performance and practices
- Analyze data and identify opportunities for improvement
- Adapt best practices to client’s core competencies