• What does the benchmarking process consist of?
  • What kinds of benchmarking are there (depending on the relationship with the reference company)?
  • What mistakes can be made when using benchmarking, and what are the risks?
The ten most common errors in benchmark analyses

Benchmarking is far from a new thing. The concept, which was considered innovative at business schools 20-30 years ago, is now used quite commonly, at least in certain cases. In a dynamic economic reality where product life cycles are getting shorter, competition is intensifying, and new ways of fighting for clients are appearing, everyone is watching what everyone else is doing and asking themselves the same question: “How are they coping under the circumstances?” This is the foundation of benchmark analysis; however, it isn’t difficult to make mistakes that would make the whole process less effective. Which mistakes are the most common?

[1] Not preparing the process

Understanding the need to observe the business environment and improve one’s own company by comparing it with the market leaders isn’t benchmarking in itself. In this process, we can identify several key steps that occur in each case. Practically any one of them could cause problems - problems which must be overcome for the whole process to be successful.

It’s critical not only to define the purpose of the benchmark analysis, but also to build a realistic plan of action. This cannot be achieved without a committed team that will supervise the actions taken and authorise the solutions developed in a specific way. It’s worth considering supplementing your team with external consultants - their objectivity can be a great added value. It’s also extremely important to inform your entire staff about the project. If you don’t, your employees may resist any changes - or even sabotage them - regardless of how significant they actually are.

[2] Focus on reducing costs

Benchmarking should help you improve how your company functions, but that doesn’t automatically mean reduced costs. This is a mistake made by managers whose main goal is to cut costs, and who are using the benchmarking project to justify those cuts.

That would be a complete misunderstanding of benchmarking. It may turn out that implementing the best market practices requires additional investments, including investments your company simply cannot afford.

On the other hand, remember that over any significant period of time, the benchmarking project itself could lead to higher expenses, especially those related to collecting data. So if it’s really only about cutting costs, it’s better not to get benchmarking involved.

The remaining 74% of the article is available for logged-in service users.

If you have an active subscription, go to login. If you are not yet our Reader, please choose the best SUBSCRIPTION VALUE..

Log in Order a subscription Buy this article

Możesz też zobaczyć ten artykuł i wiele innych w naszym portalu Sprzedaz 24. Wystarczy, że klikniesz tutaj.

Favorites Print

Also check

Open access no. 14/2021

Whom should I sell to first?

Whom should I sell to first?
  • How can you choose the most promising clients?
  • Where to look for new customers?
  • Why should you prioritise your regular clients?
Read more

Project management methods for a sales manager (Part 1. Waterfall)

Project management methods for a sales manager (Part 1. Waterfall)
  • What exactly is project management?
  • When does an organised, project-oriented approach become essential for a sales team?
  • What project management tools may be useful for the sales department?
  • When closing a meeting, how do I make sure that everyone feels motivated and understands what they’re supposed to do?
Read more

Go to



Privacy cookies

By Further active use of the Website (viewing content, closing the message, clicking links on the page) without changing the privacy settings, you agree to the processing of personal data by EXPLANATOR and partners in order to provide services in accordance with Privacy policy. You can specify the conditions for storage or access to cookies in your browser.

Service Purpose of use Enabled
Cookies necessary for the website to function You cannot disable these cookies, as they are essential for the website to function properly. These cookies also store the cookie settings you have defined. YES
Analytics cookies Cookies that make it possible to collect information about the way a user uses a website in order to optimise its functioning and adjust it to the user's expectations. Information collected by these files do not identify any particular user.
Marketing cookies Cookies that enable us to show you marketing content tailored to your preferences, and to notify you of marketing offers that match your interests, including information about the products and services of the site administrator and third parties. If you choose to delete or disable these cookies, advertisements will still be displayed, but they may not be relevant to you.