I was reading Seth Godin’s book entitled “small is the new big” and came across an interesting perspective about how benchmarking can weaken your business performance. Here’s an excerpt:

“…benchmarking against the universe actually encourages us to be mediocre, to be average, to just do what everyone else is doing. The folks who invented the Mini (or the Hummer, for that matter) didn’t benchmark their way to the cutting edge. Comparisons to other cars would never have brought about these fashionable exceptions. What really works is not having every little thing be up to the usual standards – what works is everything is being good enough, and one or two elements of a product or service being amazing.”

Indeed, current standards can sometimes be a deterrent in realizing your product or services’ true potential. It should be shattered to pave way to new and better standards.

That doesn’t mean you have to abandon your benchmarking efforts right away. In fact, I suggest that it remains an integral practice in your business, particularly if you’re just starting up. Why? Because it will help you make realistic choices as well as see your business relative to competition and the overall industry.

What you should avoid is the habit of copycatting. Many businesses, big or small, still mistake benchmarking as this. The result is lack of creativity and failure to develop innovative concepts. Copying other brand’s strategies, designs, and marketing communications won’t help you cut through the clutter.

Benchmarking works best when used as a guide to help you take the right direction on what aspect you have to innovate or differentiate.