Benchmarking is a useful tool for organizations to improve their performance by comparing their practices and outcomes to those of other similar organizations or industry standards. It is an effective way to identify best practices, set realistic goals, and develop strategies to achieve them.

In developing a strategy, benchmarking can help organizations gain insights into their strengths and weaknesses relative to their competitors. By comparing their performance to industry benchmarks, they can identify areas where they are lagging behind and develop strategies to improve. For example, if a company discovers that their production process is less efficient than their competitors, they can benchmark their competitors’ processes to identify best practices and implement them in their own processes.

Benchmarking can also help organizations identify new opportunities for growth. By analyzing the performance of successful competitors, they can identify emerging trends and innovative practices that they can incorporate into their own strategy.

Benchmarking is not limited to comparing performance against competitors. Organizations can also benchmark against their own past performance, which is known as internal benchmarking. By comparing current performance to historical performance, organizations can track their progress, identify areas for improvement, and set new performance goals.

In conclusion, benchmarking is a valuable tool in developing strategy. It allows organizations to identify best practices, set goals, and measure progress towards achieving those goals. By benchmarking against competitors and industry standards, organizations can gain a competitive advantage and improve their performance.