Benchmarking definition

Benchmarking is the process of establishing a set of criteria based on the very best in business. It is used to lead improvement initiatives as the benchmarks may be used as goals to drive change. The benchmarks, best practices, for the process of benchmarking may come from unrelated businesses. The requirement is that the subject processes relate.

Benchmarking was first applied in manufacturing but is now used in almost every business process. One of its significant advantages is that the process exposes and organization to the world of possibilities and thus helps overcome resistance to change.