Benchmarking is mainly associated to assess the performance level of organizations or individuals. Performance Benchmarking specifies this Performance concept. In this kind the performance information collection is commonly expressed in measurable, quantifiable units and making comparisons along with other compatible organizations. The performance benchmark parameters are commonly measured for a longer duration spread over a period of two to three years for effective monitoring and for witnessing the improvement.
It is also called as competitive Benchmarking. The major aim of this kind of Benchmarking is to assess the performance levels within key areas or activities in comparison along with the 'market leaders' and finding ways to improve the performance and innovate. This category of benchmarking is extremely significant remaining in mind the strategic perspective as it helps in building a competitive advantage.
Performance Benchmarking answers the most significant questions:
- What are the most important performance yardsticks?
- Where do we rank, compared with others?