Benchmarking is when a business compares its performance, processes, or products to the best in the industry (or top competitors) to figure out:
How good they really are
Where they fall behind
What they need to improve
It’s basically measuring yourself against the standard of excellence!
How do I remember it?
Think of benchmarking as comparing yourself (In a good way) to the best to see how far you need to go!
Real world example
A software company wants to improve how fast it releases features.
They benchmark against industry leaders like top tech companies.
They discover:
Industry leaders deploy code 10 times a day
Their own team deploys once a week
They then study what those leaders do differently:
Better CI/CD pipelines
Automated testing
Smaller release sizes
Using this information, they adjust their processes and move from weekly to daily deployments!
This is benchmarking:
Compare → Identify gaps → Improve