Benchmarking is a management technique for measuring the performance or work, by comparing it with the parameters or the size of the best known in the market and is usually indicated by the market leader companies. The point is to improve the performance of the company so close to even surpass the best performance of the company. Done is to compare themselves, and thus is expected to replace his role as the market leader. Because of that role, benchmarking becomes an effective tool in the context of total quality management.

Paul Spenley, a benchmarking expert, author of the book, Riding the Revolution (Harper-Collins, 2001) with Robert Heller, said there are five levels of benchmark:

• Strategic benchmarking, utilized to drive continuous improvement (continuous improvement) and sharpen the overall corporate strategy
• Competitive benchmarking, used to match and exceed the direct competitor
• Customer benchmarking, understanding the consumers and customers to the company compared to its peers
• Financial benchmarking, are used to measure the return on investment (return on investment) compared with similar companies
• Best practice benchmarking, to measure the output with the time and cost compared to its peers.

Benchmarking is not a method that is used occasionally, or just once over the life of the company, but rather an ongoing process and periodically, depending on need and urgency, at least once a year, when entering a new budget.

Many managers who are experts in preparing business (annual) plan but forgetting an important process of benchmarking, so that the business plan have not been accommodated. It is no exaggeration to form a team in order to create an oriented benchmarking includes key positions of each department or division concerned; enough team to master the necessary information and has a sharp analytical power.

Benchmarking will force companies to continuously improve themselves and at one time by streamlining several business factors or drivers to be the best, without feeling the company will progress rapidly and competitive superior compared to its competitors.

Benchmarking is action-oriented, not just analysis and theory or hypothesis. Therefore, the degree of accuracy, sharpness in analyzing, and ability to perform the selection of factors or the business drivers that influence is important, and after repairs have to walk. For this reason, very necessary commitment and support of top management and the seniors.