Can you provide some examples of internal and external benchmarking?

Internal benchmarking involves comparing performance, processes, or strategies within the same organization. For example, a company might compare the efficiency of different manufacturing plants or the sales performance of different regions. External benchmarking, on the other hand, involves comparing your organization's performance, processes, or strategies to those of other organizations, typically industry leaders or direct competitors. For instance, a company might compare its customer satisfaction ratings to those of the industry leader, or its production costs to those of its main competitor.

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There are different types of benchmarking you can undertake. The common ones involve business processes, products, strategies, and/or performance. To benchmark performance, use quantitative data like metrics and KPIs. To benchmark strategy and processes, use qualitative data on people and resources. Another way to break down benchmarking types is by internal vs. external. Here, we've listed some examples for each. Internal benchmarking typically looks within the organization, whereas external benchmarking examines the organization's position on a more macro level (Slide 6)

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Business Benchmarking

Comparisons to a top performer or industry leader not only examine the current business performance of your organization, but could also inspire new p...

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