What is benchmarking?
Benchmarking is a process of measuring the performance of a company’s products, services, or processes against those of another business considered to be the best in the industry. It is a popular and potentially powerful way to glean insights that can lead to improved performance. By studying companies with superior performance, and then comparing those processes to how your business operates, you can implement changes that will yield significant improvements.
Exploring the different types of benchmarks
There are two primary types of benchmarking:
– Internal benchmarking: comparison of practices and performance between teams, individuals or groups within an organization.
– External benchmarking: comparison of organizational performance to industry peers
or across industrie.
Internal benchmarking compares performance, processes and practises against other parts of the businessFor example, benchmarks could be used to compare processes in one retail store with those in another store in the same chain.
External benchmarking, sometimes described as competitive benchmarking, compares business performance against other companies
Our work on benchmark regulation
We work closely with European SEcutitirs and Market Authority (ESMA) to ensure the effective regulation of benchmarks. In order to promote a consistent and convergent approach across the EU we use different policy tools and has already issued guidelines, supervisory briefings and Q&As on various topics related to the Benchmarks Regulation.
Importance of Benchmarking
Benchmarking is an important tool that companies can use to stay up-to-date with trends within their industry related to sales, customer service and more. This type of tool shows an organization where it can improve internally to increase overall performance and revenue. It is number one most used global management tool, yet most companies fail to use benchmarking to their full advantage. Working closely with the customers allows us to identify improvement opportunities and make recommendations according to these opportunities. Contact us to learn more about how benchmarking can help your business achieve best-in-class performance