What does benchmarking evaluate?

Benchmarking primarily evaluates performance by comparing an organization's processes, services, or products to those of industry leaders or best-performing organizations. This method allows businesses to identify areas of improvement and set performance targets based on best practices. Performance benchmarking not only assesses the current efficiency and effectiveness of an organization but also encourages continuous improvement by analyzing how well an organization measures up to competitors or industry standards.

While quality, usability, and cost are important aspects of organizational performance, benchmarking specifically focuses on performance metrics related to efficiency, productivity, and overall success in achieving strategic goals. It provides a clear perspective on how well an organization is doing compared to others in terms of delivering value and achieving results, making it a powerful tool for enhancing performance across various dimensions.