The concept of benchmarking refers to a management technique that is based on taking as a reference the most outstanding practices of other companies, either from the same sector or from another, to adapt them to the business itself in order to achieve better results.
The definition of benchmarking also addresses the process through which other companies, both competitors and belonging to other areas, are monitored with the purpose of analyzing their services, products and other aspects to compare them and try to incorporate you into the company itself with the various improvements.
This term is based mainly on the thought that today almost everything is invented and there is not much scope for the appearance of new working methods. This analysis process saves time and money since in reality what it does is take as a reference other companies and incorporate those aspects that are giving the best results.
Types of benchmarking
There are different kinds of bechmarking depending on the type of companies that are taken as a reference.
- Generic benchmarking: is the one that is applied with companies that may or may not be competitors. This is what happens when you follow the example of a company that is a leader in a sector other than our business.
- Competitive benchmarking: the one that is applied with companies that are direct rivals of our business. This is the case, for example, of those companies that obtain better results than us and we try to take their strategies as a reference.
- Internal benchmarking: it is implemented internally within a company. It happens when the strategies of a certain area of the company are taken as a reference that works well in comparison with other departments.
Benchmarking involves constant monitoring and competitor analysis, especially those that occupy a preferential place in the market.