Best practice

In benchmarking, the term "best practice" refers to discovering and implementing the most effective-or "best"-means for a business to attain its objectives. Businesses can keep abreast of how successful companies in various industries, as well as their own, do just that and become successful. Benchmarking software applications are available that address the issue of best practice.

I recommend: BusinessLink explains how best practice is attained through benchmarking.

Strategic benchmarking

Strategic benchmarking helps a business improve its overall performance. Implementing this process involves surveying the level of customer satisfaction in other businesses. It also compares a company's performance with its customers' standards. One problem associated with strategic benchmarking is getting the competition to reveal their strategies for success. Some benchmarking software is specifically designed for businesses interested in strategic benchmarking.

I recommend: SM Thacker & Associates features basic information about strategic benchmarking.

Process benchmarking

Process benchmarking-one of the more popular forms-is geared more for measuring specific areas of a company, such as its fiscal development or overall stability. This type of benchmarking is recommended for exploring how businesses attain and retain their success. If this type software is important, ensure that process benchmarking is included in the software package and that it focuses on how to engage in process benchmarking.

I recommend: Best Practices, LLC offers information on process benchmarking and its benefits. Also, Meniscus Systems features information on software specifically designed for process benchmarking.

Internal benchmarking

Internal benchmarking involves studying other departments and functions within a company, rather than looking at other organizations. Depending on the business's size, a wide range of performances may be depicted. Software is available for implementing internal benchmarking practices.

I recommend: MultiChannel Merchant provides a broad overview of internal benchmarking.

Competitive benchmarking

A business often uses competitive benchmarking to take stock of its role in its industry or marketplace as it relates to its competition. Competitive benchmarking software is available online.

I recommend: The Research & Planning Group defines competitive benchmarking and gives examples of its use. Competitive benchmarking software is available at Wareseeker.com

Productivity benchmarks

Productivity benchmarks are tailored to an individual business's goals and objectives. In most cases, these benchmarks refer to the goods or services a company produces and how well they are produced. Not all benchmarking software identifies productivity benchmarks.

I recommend: BNet identifies productivity benchmarks. The National Productivity and Competitiveness Council identifies productivity benchmarking software and tools.