Benchmark
A reference point used to compare data to a standard.
Benchmarks come from two sources: internal historical data, meaning the business's own past results, and external industry standards published for the sector. Comparing a KPI to a benchmark is what turns a data point into a judgment.
A number without a benchmark is trivia; a number with one is a verdict.
Often confused with
- Decision-Making Criteria
- A benchmark is a comparison standard for a result already produced; criteria are the standards a decision will be judged on before it is made.
- KPI
- The KPI is what the business measured; the benchmark is what it measures against.
Taught in
See also
4.2.C.1 · 4.2.C.2