Benchmarking is the process of comparing the metrics, policies and procedures of an organization to other best-in-class industry participants. Benchmarking is often used by both internal and external parties of an organization. Here are two examples of benchmarking in practice:- People Ops benchmark salary bands against companies in a similar industry, funding stage, and size to ensure their organization is in line with the competition.- Investors benchmark the metrics of a potential opportunity to gauge its relative attractiveness.