Benchmark

Benchmarking (or to benchmark) in business means measuring your company’s quality, performance, and growth by analysing the processes and procedures of others. If you believe there’s something that can be improved within your organisation, you can see how your business stacks up against the standard and plan out a path for betterment, whether that means cutting costs, boosting efficiency and productivity, or growing revenue.

What Are the Different Types of Benchmarking?


Performance Benchmarking

This involves collecting and comparing quantitative data. This is the first step for an organisation to identify performance gaps.

Practice Benchmarking

This consists of collecting and comparing qualitative information. This step-by-step analysis is how an activity is conducted through people, processes, and technology.

Internal Benchmarking

This involves comparing data from different departments, units, locations, and so on from within the organisation.

External Benchmarking

This involves comparing your organisation’s performance to other organisations in the same industry.
 

What Are Four Benchmarking Best Practices?

Now that we have learned benchmark meaning, benefits, and process, time to look at the best practices of benchmarking.

Start at the Earliest

Examining your competitors and determining where and how you may improve is similar to receiving a guide to your destination.

Set a Schedule for Yourself

Benchmarking can take a lot of time because it involves studying the competition, analysing where changes could be made, and taking measures.

Take a Look Beyond Your Sector

Companies that operate outside of your market might provide some of the most exceptional learning opportunities. 

Concentrate on the Most Critical Metrics

Narrow your benchmarking analysis to a few common indicators or variables throughout your industry that can be evaluated for a fair comparison.

Benchmarking Process


Step 1: Planning

The planning stage will provide a roadmap for collecting the necessary information and determining what success will look like.

Step 2: Gathering Information

Collect information on your processes and how your competitors do them. 

Step 3: Data Analysis

It is crucial to keep an open mind during this stage and analyse the information objectively. Once you have uncovered your findings, you can draft a report and discuss the following steps to achieve better performance.

Step 4: Action

The next step in the benchmarking process is to present your findings and proposed changes to the department.

Step 5: Track the Results

The only way to gauge the success of the changes is to keep an eye on the metrics and objectives for success that will get emphasised during the implementation phase. 

 
Benchmarking can enable you to achieve the following goals:
  • Get an unbiased opinion on how well your company performs compared to others.
  • Dig deeper into performance gaps to find areas where you can improve.
  • Generate a series of standardised processes and metrics.
  • Encourage a continual enhancement of mindset and culture.
  • Set high standards for yourself.
  • Track and manage the performance of the company.

Suggested Experts Of Benchmark

Free / 30Mins

Karabo Mogodi
Company Rebirth - Consulting
★ ★ ★ ★ ★
☆ ☆ ☆ ☆ ☆
About

Food technology professional, specializing in food safety and compliance, I help businesses ensure the highest standards of quality, safety, and regulatory adherence. With years of experience in the food industry and a food safety certified individual , I bring a strategic, data-driven approach to managing risks, implementing best practices, and ensuring your products meet both regulatory and consumer expectations. Whether you're looking to navigate food safety regulations, improve hygiene protocols, or ensure your production processes are safe and compliant, I provide tailored solutions that protect your brand and ensure consumer trust.

Topics
Book Now
R625 / 30Mins

Victor van der Spuy
Founder
★ ★ ★ ★ ★
☆ ☆ ☆ ☆ ☆
About

Victor is an Executive Consultant and Success Coach with a Master’s degree in Marketing from the International Institute of Marketing. As a certified NQF8 Marketer, he leverages his academic expertise and extensive experience to help individuals and businesses unlock their potential. Victor specializes in developing equity growth strategies and solving complex enterprise challenges with his team’s support.

Topics
Book Now
R1,500 / 60Mins

Cuthbert Malindi
Founder of Kleiner Apex SA (Pty ) Ltd
★ ★ ★ ★ ★
☆ ☆ ☆ ☆ ☆
About

I am a business advisor, qualified and certified NLP life, Business and Executive Coach who also offers short courses in investments and entrepreneurship. I have a unique blend of qualifications and skills, being a Chartered Financial analyst (CFA/ASIP), a chartered Accountant (FCCA/CA), a qualified venture capitalist and fund manager, a Transport and logistics major and Mechanical Engineer by training (basically a Polymath) and so able to offer a multiview advise across all areas of business. As a venture capitalist, transaction advisor, and investment executive, I've successfully led growth initiatives in small to medium-sized organisations, from inception to exits

Topics
Book Now
Popular Terms
Business Development Business Strategy Business Leadership Business Planning Go To Market Strategy Startup Funding
Got a Question?

No question is too big or too small. Our Experts are here to help you find answers.

Get an Expert Answer