Which statement about external benchmarks is true?

• A. They compare within the organization
• B. They are always financial metrics
• C. They compare an organization to external peers
• D. They are never updated

Answer: (C)

External benchmarking means measuring performance by comparing your organization with outside peers or industry standards. This creates context for whether you are performing as well as, better than, or worse than others doing similar work, which is essential for spotting improvement opportunities and setting meaningful targets. The statement that captures this is that benchmarks compare your organization to external peers. It’s not limited to financial data—external benchmarks can include non-financial measures like delivery speed, defect rates, or customer satisfaction. And benchmarks aren’t static—new data and industry changes mean they’re updated over time, not never updated.