Benchmarking involves comparing one company to another similar company through key metrics of their operations. The use of benchmarking techniques makes it possible for one to have a total view of the company’s operations at a glance. If you like, liken benchmarking as an economic dashboard, which reveals things like expenses, production amounts, and employee productivity and so on.

In the business world, every company in every sector is associated with the art of benchmarking. Officers in areas of research, information, analysis, consultation, and marketing are all involved in benchmarking.

Having known what benchmarking is all about, it is very relevant t look at these 7 kinds of benchmarking for successful enterprising.

• Process benchmarking:

This enables you to optimize and improve your processes by comparing performance against internal and external benchmarks. You can create an efficient and effective way of progressing by studying the footprints of your superiors who had passed a similar process.

• Strategic benchmarking:

For your company to be more competitive, you have to compare strategies that made other firms to become very successful.

• Performance benchmarking:

This uses resultant effects of what you are doing to form an information base. For instance, you could compare consumer satisfaction or revenue growth (it is done internally or externally).

• SWOT:

In this kind of benchmarking, companies put together information through analyzing strengths, weaknesses, opportunities, and threats.

• Collaborative benchmarking:

This entails group comparing. The benchmark is done for many firms who come together under one body to provide and share information on how their competitors are doing in the market.

• Peer benchmarking:

For companies to ascertain whether they are doing well, they compare themselves with companies similar to theirs with so many parameters.

• Best practices:

A growing company may want to become established and become big like another giant company of their envy. This is when Best practices benchmarking is used.

There are steps to be taken, as your company would embark on benchmarking. They include:

1. Knowing the benchmark focus

The company should know its specifications as regards the project. It should know its limits and keep to them.

2. Planning and Researching

In this area, the company should have an overall view of what it is going to take to actualize the project. Let there be plans for cooperating with other companies.

3. Gathering data

Through planning and research, the company makes data available for use.

4. Analysis

When the gathering of data is done, the company studies and procures its results.

5. Recommendation

Analyzing data give rise to determining areas where the company can make further improvements.

Finally, benchmarking on false values within becomes the mere perceived success of illusions. Nothing in this regard is more dangerous than to have perceptions of success based on what is not found within. Regarding the issue of ‘better benchmarking’, to compare effectively, is indeed a way to achieving good results. This is just the opposite of ‘faulty benchmarking’.

The need for improvement is what makes firms to benchmark. The only key goal of all benchmarking is to make room for improvement. This goal touches all facets including efficiency, cost reduction, increased profits, and increased customer satisfaction.

Daven Michaels is a New York Times Best Selling Author and CEO of premiere global outsourcing company, 123Employee. The company employs hundreds of young bright individuals on three continents. His International event, Beyond Marketing Live! Inspires entrepreneurs to build & grow their business with revolutionary new theories and systems allowing them to design the business and personal lifestyle of their dreams.