What are the best tools and methods for conducting benchmarking and gap analysis in your industry or sector?

1 Types of benchmarking

Benchmarking can be classified into four types: internal, competitive, functional, and generic. Internal benchmarking compares your performance with other units or departments within your organization. Competitive benchmarking compares your performance with your direct competitors or market leaders. Functional benchmarking compares your performance with similar functions or processes in other industries or sectors. Generic benchmarking compares your performance with universal standards or best practices.

2 Methods of benchmarking

Benchmarking can be conducted using different methods, depending on your objectives, resources, and availability of data. Some of the common methods are: historical, peer, collaborative, and external. Historical benchmarking compares your current performance with your past performance or targets. Peer benchmarking compares your performance with other organizations or units that are similar to yours in size, scope, or location. Collaborative benchmarking involves working with other organizations or units to share data, insights, and best practices. External benchmarking involves hiring a third-party consultant or agency to collect and analyze data, provide feedback, and suggest improvements.

3 Tools for benchmarking

Benchmarking can be facilitated by using various tools that help you collect, organize, and visualize data, as well as generate reports and recommendations. Some of the popular tools are: spreadsheets, dashboards, surveys, questionnaires, interviews, site visits, audits, SWOT analysis, and balanced scorecard. Spreadsheets allow you to store and manipulate data, perform calculations, and create charts and graphs. Dashboards allow you to monitor and display key performance indicators (KPIs) and metrics. Surveys, questionnaires, interviews, site visits, and audits allow you to gather qualitative and quantitative data from different sources and perspectives. SWOT analysis allows you to identify your strengths, weaknesses, opportunities, and threats. Balanced scorecard allows you to align your strategic objectives with your performance measures.

4 What is gap analysis?

Gap analysis is the process of comparing your current state with your desired state and identifying the gaps that need to be bridged. Gap analysis can be applied to different aspects of your organization, such as: products, services, processes, skills, competencies, resources, capabilities, culture, and customer satisfaction. Gap analysis can help you prioritize your actions, allocate your resources, and set your goals.

5 Methods of gap analysis

Gap analysis can be conducted using different methods, depending on your scope, criteria, and data sources. Some of the common methods are: fishbone diagram, root cause analysis, Pareto chart, gap matrix, and gap map. Fishbone diagram allows you to identify the possible causes of a problem or a gap. Root cause analysis allows you to drill down to the underlying cause of a problem or a gap. Pareto chart allows you to rank the causes or gaps by their frequency or impact. Gap matrix allows you to compare your performance with your expectations or standards on two dimensions. Gap map allows you to visualize the gaps between your current and desired states on a grid.