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There are four main types of benchmarking in business: internal, competitive, functional, and generic. Internal benchmarking compares performance and processes within the same organization. Competitive benchmarking compares performance with direct competitors. Functional benchmarking compares similar functions in different industries. Generic benchmarking compares operations between unrelated industries.
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Benchmarking is more than just identifying gaps in performance and strategies to stay competitive. More importantly, it is not just a "one-time deal" – procedures are continuously examined and analyzed to deliver improved performances. So use benchmarking to seek out the best possible implementation at different stages of your business.
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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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