1. Internal Benchmarking
This refers to comparison of practices and performance between teams, individuals or groups within an organization. Within every organization there are functions that are top performing, identifying, harvesting and deploying the practices employed by the best-in-class units can dramatically enhance performance In addition to the performance, the process of finding best practices can generate tremendous innovation and creativity within the organization.
2. External Benchmarking
This refers to the comparison of organizational performance to industry peers. External best practices true to their name require organizations’ to look out for growth; specifically, companies can improve by assessing the best business practices of other competitors or highly successful organization. Identifying best practices within and outside without the industry can often lead to
innovative solutions that boast performance levels and capabilities.
3. Process Benchmarking
It demonstrates how top performing companies accomplish the specific process question. Such benchmarking is collected via research, surveys, interviews and visits. By identifying how others perform the same functional task or objective people gain insight
and ideas they may not otherwise achieve. Such information affirms and supports decision making by the executives