Expect to come across this, one of the most important business analyst interview questions for experienced professionals in business management, in your next interviews. A benchmark is the competitive border that allows an organization to adapt, grow, and thrive through change. An organization benchmarks its crucial business metrics and practices to determine where it needs to change to improve its performance—within an organization's business areas or against a competitor, industry peers, or other companies worldwide. There are four types of benchmarking, Performance benchmarking, gathering and comparing quantitative data to identify the performance gap. Practice benchmarking, gathering and comparing qualitative data to identify best practices to adapt to fill the performance gap. Internal benchmarking compares metrics from different units, products, and departments to understand the business performance. External benchmarking sets baselines and improvement goals to assess the organization and business's current state.