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Benchmarking

Benchmarking compares a firm's processes or metrics against best practice — internal, competitor, or cross-industry — to identify performance gaps. It converts external reference points into concrete improvement targets.

ByHoang TruongUpdated

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Benchmarking compares a firm's processes or metrics against an external reference rather than only its own history. The comparator can be internal, a direct competitor, or a best-in-class firm from any industry — often the most revealing choice. The performance gap this reveals becomes a concrete improvement target, not just interesting data.

Where it fits
SubjectManagerial AccountingAdvancedTopicStrategic Performance & the Balanced ScorecardAdvanced