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Benchmarking is a method where the performance of a company, product, or process is compared with other industry leaders to identify best practices and achieve improvements. It is an important process that helps increase competitiveness. This article will discuss the different types of benchmarking, the process, and the benefits.

Benchmarking - Definition and Importance

Benchmarking is a systematic method where the performance, practices, and processes of a company or organization are compared with those of the best companies in the industry. The goal of benchmarking is to determine one's own performance levels, identify potential for improvement, and adopt best practices from other organizations to increase one's competitiveness.

Types of Benchmarking

There are various types of benchmarking which can be applied depending on the needs and objectives of the company:

  1. Internal Benchmarking: This involves comparing different departments or teams within an organization to find out which ones operate most effectively and where improvements can be made.
  3. Competitive Benchmarking: With this type of benchmarking, one's own performances and processes are compared with those of direct competitors. This helps to better position oneself in the competitive environment and identify one's own strengths and weaknesses.
  5. Functional Benchmarking: This involves comparison with companies from other industries that have similar functions or processes. This allows learning from best practices that are successfully applied in other industries.
  7. Generic Benchmarking: This type of benchmarking refers to the comparison of processes and practices that are generally applicable across various industries and areas. The focus here is on identifying best practices that are independent of the industry or business area.

The Benchmarking Process

The benchmarking process consists of several steps, which are explained in more detail below:

  1. Objective Setting and Planning: First, the goals of the benchmarking process need to be defined, including the determination of performance indicators to compare and the selection of comparison companies.
  3. Data Collection: In this step, the necessary data and information are collected from the selected comparison companies. This can be done through research, surveys, or the exchange of information.
  5. Data Analysis: The collected data is analyzed and compared to identify differences and similarities between the companies. This highlights the strengths and weaknesses of one's own organization.
  7. Interpretation of Results and Recommendations for Action: From the results of the analysis, recommendations for action are derived to implement the identified potential for improvement. This could involve adjusting processes or implementing best practices, for example.
  9. Implementation and Monitoring: The developed measures are implemented in the organization, and their impact on performance is continuously monitored. This ensures that the targeted improvements are actually achieved.

Benefits of Benchmarking

The application of benchmarking offers a number of benefits to an organization:

  • Performance Improvement: By comparing with other companies, weaknesses and potential for improvement can be identified, and corresponding actions can be taken to boost one's own performance.
  • Identify Best Practices: Benchmarking allows learning from the most successful companies in the industry or other industries and adapting their best practices for one's own company.
  • Gaining Competitive Advantages: Through continuous improvement of one's own performance and processes, competitive advantages over competitors can be achieved.
  • Efficiency Increase: Optimizing processes and practices can lead to higher efficiency within the organization, which in turn contributes to cost savings and better resource utilization.
  • Motivation of Employees: Benchmarking can help to more deeply involve employees in the improvement process and sensitize them to the need for change and continuous improvement.


Benchmarking is an important process that supports companies in continuously improving their performance and competitiveness. Through systematic comparison with other companies, best practices can be identified and implemented within one's own organization. This leads to an increase in efficiency, performance, and ultimately competitiveness in the market. Therefore, benchmarking should be seen as an essential part of strategic planning and the continuous improvement process in any organization.