How do you choose the right benchmarking partners for your strategy?

1 What is benchmarking?

Benchmarking is the process of measuring and comparing your performance, processes, or practices with those of other organizations that are recognized as leaders or best in class in your industry or sector. Benchmarking can help you identify gaps, opportunities, and areas for improvement in your strategy, as well as learn from the successes and failures of others.

2 Why is benchmarking important for strategy?

Benchmarking can help you align your strategy with the external environment, the expectations of your stakeholders, and the best practices of your peers or competitors. Benchmarking can also help you set realistic and ambitious targets, monitor your progress and results, and adjust your strategy as needed. Benchmarking can also foster a culture of learning, innovation, and continuous improvement in your organization.

3 How to choose the right benchmarking partners?

When selecting the right benchmarking partners for your strategy, there are several factors to consider, such as your strategic objectives and priorities, the industry and sector you are in, the scope and scale of your benchmarking, and the resources and capabilities you have. You should think about what you are trying to achieve and improve with your strategy, who the leading or emerging players in your industry are, how broad or narrow your benchmarking scope is, and how much time, money, and effort you can invest in benchmarking. Additionally, you should consider the sources and methods of data collection and analysis you can use, as well as how you can access and validate the information you need from your benchmarking partners.

4 How to conduct benchmarking effectively?

Once you have selected your benchmarking partners, you need to follow some steps to conduct benchmarking effectively. This includes defining your benchmarking criteria and questions, collecting and analyzing data, identifying and prioritizing best practices, and implementing and monitoring changes. You should consider what aspects or dimensions of performance, process, or practice you want to benchmark, as well as the questions you want to answer. Additionally, you should determine the tools and techniques you will use to analyze and interpret the data, and ensure the reliability and validity of the data. Furthermore, you should identify the best practices that you can learn from your benchmarking partners, and prioritize and select the best practices that you want to adopt or adapt. Finally, you should consider the resources, processes, and timelines that you need to make the changes, and monitor and evaluate the impact and outcomes of the changes.

5 How to avoid common benchmarking pitfalls?

Benchmarking can be a powerful tool for strategy, but it can also have some pitfalls. For instance, benchmarking should not be done without a clear purpose, scope, and goal. Additionally, benchmarking should not ignore the differences and nuances between your organization and your benchmarking partners, nor should it overlook the external and internal factors that influence performance, process, or practice. Furthermore, benchmarking should not be an end in itself, but a means to an end. It should be a proactive and creative process, not a passive or reactive one, and should result in innovation and differentiation, not mere imitation or replication.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?