What is benchmarking analysis?

Question

Accepted Answer

Benchmarking analysis is a process of comparing an organization's performance metrics to industry standards or best practices to identify areas for improvement.

Involves comparing key performance indicators (KPIs) such as cost, quality, and delivery time with industry benchmarks
Helps identify areas where the organization is lagging behind or excelling compared to competitors
Provides insights for setting performance targets and improving processes
Examples include benchmarking a company's customer service response time against industry averages or comparing production costs with industry standards