Benchmarking Meaning: Definition, Examples, and Translations
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benchmarking
[หbษnสงหmษหrkษชล ]
Definition
performance measurement
Benchmarking is the process of comparing one's business processes and performance metrics to industry bests or best practices from other companies. This practice is often used by organizations to identify areas for improvement, set performance goals, and measure progress. It can involve quantitative measures like productivity and quality, or qualitative measures like customer satisfaction. Benchmarking can be performed internally, against one's own past performance, or externally, against competitors or market leaders.
Synonyms
comparison, evaluation, measure, standard, yardstick.
Examples of usage
- We started benchmarking our sales figures against the industry leaders.
- The company implemented benchmarking to refine its operational efficiency.
- Benchmarking allowed us to discover areas where we lagged behind competitors.
Translations
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Origin of 'benchmarking'
The term 'benchmark' originates from the practice of surveying and land measurement. In the 19th century, it referred to a mark made on a stone or other permanent structure to serve as a reference point for measuring land elevations. As businesses began to focus on performance metrics, the concept of benchmarking evolved in the late 20th century, gaining popularity in the 1980s and 1990s as organizations sought ways to improve performance by learning from the best in the industry. Today, benchmarking is a common strategic practice across various sectors, including manufacturing, services, and even education, as organizations continually strive for improvement and competitive advantage.