Benchmarking is the process of measuring your performance against the best in your industry or against best practices, regardless of industry. It's about identifying and understanding what others are doing well, and then using that information to improve your own performance. It's an *external* comparison. The goal is to identify gaps and areas for improvement. Examples include comparing your customer service response times to those of a leading competitor or analyzing your manufacturing efficiency against industry averages.
Competency, on the other hand, refers to the skills, knowledge, attitudes, and behaviors that enable someone (an individual or an organization) to perform successfully in a particular role or task. It's an *internal* assessment focused on capabilities. It's about identifying the specific abilities needed to achieve a desired outcome. Examples include problem-solving skills, communication abilities, technical expertise, or leadership qualities. Competencies are often used in job descriptions, performance reviews, and training programs.
Here's a table summarizing the key differences:
| Feature | Benchmarking | Competency |
|----------------|-------------------------------------------|-------------------------------------------------|
| Focus | External comparison; industry best practices | Internal capabilities; individual or organizational skills |
| Purpose | Identify gaps and areas for improvement | Define required skills for successful performance |
| Measurement | Performance metrics (e.g., efficiency, cost) | Skills, knowledge, behaviors, attitudes |
| Outcome | Improved performance relative to others | Enhanced performance through skill development |
In essence, you might use benchmarking to identify a high-performing competitor's superior customer service. Then, you could analyze their competencies (e.g., employee training programs, customer relationship management systems, employee empowerment) to understand *how* they achieved that superior performance and potentially replicate or improve upon their success.