External benchmarking is the process of comparing an organization's performance, processes, or products against those of other organizations, often within the same industry. This practice helps businesses identify best practices, understand competitive positioning, and discover areas for improvement. By analyzing metrics such as customer satisfaction, operational efficiency, or financial performance, companies can gain insights that drive strategic decisions. Organizations typically use external benchmarking to set realistic goals and measure progress over time. It can involve gathering data from industry reports, surveys, or direct comparisons with competitors. This approach not only fosters innovation but also encourages continuous improvement by learning from the successes and challenges of others.