What is considered the most challenging aspect of benchmarking?

The most challenging aspect of benchmarking is often obtaining access to information about rivals' practices. Benchmarking involves comparing a company’s processes and performance metrics to those of leading competitors or best-in-class organizations in order to identify areas for improvement. However, gaining insight into competitors' strategies, processes, and performance data can be quite difficult, as these entities typically protect their sensitive information to maintain a competitive edge. This challenge is compounded by the fact that much of the data required for benchmarking may not be publicly available, necessitating creative approaches to data gathering, such as industry partnerships or market research.

While the decision of whether to benchmark, the selection of information for analysis, and the timing of the benchmarking process are also significant considerations, they are generally secondary to the fundamental requirement of having reliable and comparable data from competitors. Without this information, the benchmarking process cannot yield meaningful insights or drive improvements. Thus, securing access to appropriate data is crucial for successful benchmarking efforts.