What process should be used to compare high-performing companies to one's own to identify performance gaps?

Benchmarking is the most suitable process for comparing high-performing companies to one's own organization in order to identify performance gaps. This technique involves measuring your organization’s performance metrics against those of leading firms in the industry or those recognized as best-in-class. By analyzing how these high-performing companies operate, organizations can pinpoint areas where they lag, understand the practices that contribute to superior performance, and adopt strategies to improve their own processes and outcomes.

A benchmark analysis typically includes various performance indicators such as efficiency, service quality, customer satisfaction, and financial performance. This comparative approach provides valuable insights that help organizations set realistic targets and implement effective improvement initiatives, ultimately driving operational excellence and competitive advantage.

Other processes mentioned, such as environmental scanning, focus more on analyzing external factors and trends that may affect the organization rather than directly comparing performance metrics with competitors. Strategic planning is more about setting long-term goals and determining the actions required to achieve them, while competitive analysis involves a broader look at competitors' strategies but may not necessarily provide the specific performance comparisons that benchmarking does.