what is benchmarking?

Answer 1

Benchmarking is the process of determining who is the very best, who sets the standard, and what that standard is. In baseball, you could argue that seven consecutive World Series Championships made the New York Yankees the benchmark.
If we were to benchmark "world conquest", what objective measure would we use to compare Julius Caesar to Adolph Hitler; Gengis Khan to Napoleon? Which of them was the epitome, and why?

We do the same thing in business. Who is the best sales organization? The most responsive customer service department? The leanest manufacturing operation? And how do we quantify that standard?

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Answer 2

Benchmarking means setting a measurable standard for comparison and evaluation of performance.

Let's say I set the benchmark at 10. If actual performance ends up at 3, then I know we didn't do well enough and have a ways to go.

Without benchmarks, we don't have a way to determine if something is doing well enough or not.

Answer 3

Benchmarking in the process of determining who sets the standard and what the standard is. It is done to motivate people to improve toward that goal.

Answer 4

Benchmarking is a practice of looking to competition for comparison.

Let's say your company has 50 days of sales outstanding (i.e., your accounts receivable are equivalent to 50 days of sales). Is this good or bad? You look at your competitors and find out that most of them have between 25 and 35 days of sales outstanding. So you may decide to tighten your credit terms and bring your receivables in line with the industry norm. Or you may conclude that your ability to extend credit is a competitive advantage and do nothing.

Answer 5

benchmarking:
Comparring a new process or product against a known standard.
Computers are comparred to the original IBM PC for speed performance as an example.

Answer 6

Is it something to set a standard by?

Answer 7

it is a known starting point that you compare what you are looking for to.