According to Management Strategy Consulting firm Bain & Company, Benchmarking improves performance by identifying and applying best-demonstrated practices to operations and sales.
Managers compare the performance of their products or processes externally with those of competitors and best-in-class companies and internally with other operations within their own firms that perform similar activities. The objective of Benchmarking is to find examples of superior performance and to understand the processes and practices driving that performance.
Companies then improve their performance by tailoring and incorporating these best practices into their own operations—not by imitating, but by innovating.
Improve Performance
Benchmarking identifies methods of improving operational efficiency and product design
Understand relative cost position
Benchmarking reveals a company’s relative cost position and identifies opportunities for improvement
Gain strategic advantage
Benchmarking helps companies focus on capabilities critical to building strategic advantage
Increase the rate of organizational learning
Benchmarking brings new ideas into the company and facilitates experience sharing.