Which term refers to the practice of comparing performance metrics to industry standards?

The term that refers to the practice of comparing performance metrics to industry standards is benchmarking. This process allows organizations to evaluate their performance relative to others in their industry, helping them identify areas for improvement. By measuring key performance indicators against those of competitors or best-in-class companies, businesses can gain insights into best practices and operational efficiencies. Benchmarking serves as a valuable tool for continuous improvement and strategic planning, enabling organizations to set realistic goals and implement effective changes.

In contrast, quality control focuses specifically on ensuring that products or services meet defined quality standards through inspections and testing. Quality management encompasses a broader view, including the processes, systems, and activities needed to maintain quality across the organization. Quality circles refer to a specific group of employees who meet regularly to discuss and solve quality-related issues, but do not involve the comparative analysis that benchmarking does. Overall, benchmarking is essential for organizations seeking to enhance their competitiveness in an industry.