Global benchmarking is the process of comparing an organization’s internal processes, performance metrics, and capabilities against the best-in-class organizations worldwide, regardless of industry or geography. The goal is to identify opportunities for improvement by understanding how high-performing organizations achieve excellence.
The Core Tenets of Global Benchmarking
- Focus on best practices, not just benchmarks
- Look outside your industry and region
- Involve stakeholders throughout the process
- Take action on findings
- Continuously repeat the process
Why Global Benchmarking is Important to Business Consultants
Global benchmarking allows consultants to guide clients beyond incremental improvements by exposing them to breakthrough strategies from unexpected sources.
Rather than getting stuck competing within their industry, clients can leapfrog ahead by emulating world-class practices from other industries and applying them in new, innovative ways. Consultants play a crucial role in identifying benchmarking opportunities, facilitating the process, synthesizing insights, and activating change within client organizations. Skilled benchmarking expands a consultant’s perspective and equips them to stimulate major performance improvements.
By researching how admired companies operate and the results they achieve, consultants gain expanded understanding of what is possible. They can apply this knowledge to help clients adopt a fresh mindset, aim higher, and implement transformative changes. Global benchmarking prevents consultants and their clients from becoming complacent or insular.
It compels them to continuously survey the world for better approaches and guarantees they will find opportunities for breakthrough advancement.
Example of Global Benchmarking in Use
- Xerox benchmarked order fulfillment processes against L.L. Bean to dramatically improve customer satisfaction and cut costs.
- Starbucks benchmarked supply chain management practices at Walmart which enabled rapid expansion of stores.
- The Ritz-Carlton Hotel Company benchmarked customer service best practices from Nordstrom, Mercedes-Benz, and other top service brands. This led to their well-known service culture.
Global Benchmarking Synonyms
- Best practice benchmarking – Comparing against organizations recognized as exemplars regardless of industry.
- Trans-industry benchmarking – Benchmarking against top performers in other industries.
- External benchmarking – Benchmarking utilizing data from outside one’s own organization.
- International benchmarking – Benchmarking using global best practices as a reference point.
- Process benchmarking – Benchmarking focused on internal processes.
Global Benchmarking Antonyms
- Internal benchmarking – Comparing different departments or locations within the same organization.
- Competitive benchmarking – Benchmarking against direct competitors within the same industry.
- Historical benchmarking – Comparing against one’s own past performance rather than external organizations.
- Theoretical benchmarking – Establishing benchmarks using estimates rather than actual data.
Other Closely-Related Terms
- Organizational learning – Global benchmarking contributes to ongoing organizational learning.
- Best practices – Global benchmarking identifies best practices from which others can learn.
- Business process reengineering – Insights from benchmarking may lead to process reengineering.
- Performance measurement – Benchmarking provides external reference points for measurement.