The practice of comparing features and performance of an organization, department or function with those of other organizations and standards.
The following axioms should be considered in benchmarking:
- What works well for a given organization in one situation may not work well in another organization under different circumstances;
- There are lessons to be learned from undesirable situations as well as from best practices — things that have been proven to work well and produce good results;
- Examining the practices of organizations with fundamentally different aims can produce surprisingly useful insight about another organization.