Step 1: Planning:

Identify what to be benchmarked and the firms to be used for comparison

Step 2: Analysis:

Determine the disconnect between the firms performance and that of the benchmarked

Step 3: Integration:

Establish goals and support of those whose resources need to accomplish the goals

Step 4: Action:

Develop action plans and teams that will help implement the plans generated from the benchmark

There are three main types of benchmarking:

Competitive: Based off of comparisons with a direct competitor

Functional: Compares areas of the current firm to those of a highly profitable and outstanding firm.  Such areas could include administration, customer service, sales operations, etc.

Internal: Uses an organizational unit with outstanding service and performance and the benchmark study for others.