BENCHMARKING

BENCHMARKING

This is a systemic process of comparing the activities and work processes of an organization or department with those of outstanding departments or organizations in order to identify ways to improve performance.

Types of benchmarking include internal benchmarking; a method of comparing one operating unit with another within the same industry.

Competitive benchmarking is comparing performance of competitors or rivals within the same industry using direct indices such as profits, output, profit per share, dividends per share and so on. It is possible to compare the performance of Nigeria’s leading companies or banks through Competitive benchmarking.