Benchmarking is a tool to achieve business and competitive objectives. It is powerful and extremely effective when used for the right reasons and aligned with organization strategy. It is not a panacea that can replace all other quality efforts or management processes. Organizations must still decide which markets to serve and determine the strengths that will enable them to gain competitive advantage. Benchmarking is one tool to help organizations develop those strengths and reduce their weaknesses.

By definition, benchmarking requires an external orientation, which is critical in a competitive world where the competitor can easily be on the other side of the globe. An external outlook greatly reduces the chance of being caught unaware by the competition. Benchmarking can notify the organization if it has fallen behind the competition or failed to take advantage of important operating improvements developed elsewhere. In short, benchmarking can inspire managers (and organizations) to compete. The primary weakness of benchmarking, however, is the fact that best-in-class performance is a moving target.