Benchmarking is a technique in which a company measures its performance against that of best in class companies, determines how those companies achieved their performance levels and uses the information to improve its own performance. Subjects that can be benchmarked include strategies, operations and processes. (ASQ)
There are two forms of benchmarking:
Performance: analysis of relative business performance through key performance metrics.
Process/Functional: analysis of key processes and functions.
The process for benchmarking is: