Benchmarking can consist of comparisons that are internal (within the same organization) or external (including other organizations), and may be done at the national or international level. It may be undertaken by the organizations themselves or by a benchmarking agency.
The general aim of this process is to identify best practices in order to increase performance levels. The group of organizations involved collaborate willingly and share the results of the evaluation. It is in no way a public or formal system of certification.
Benchmarking can therefore be considered as a diagnostic and self-improvement tool, a collaborative evaluation and potential marketing tool, and an on-going monitoring tool to ensure the continuation and evolution of best practices for all organizations involved in similar activities.
Benchmarking may apply to firms, governments, non-governmental organizations, non-profit organizations and educational institutions.