Benchmarking is defined as a systematic process of measuring an organization's products, services, and processes against industry leaders to determine best practices. The document outlines the 6 general steps to benchmarking: 1) deciding what to benchmark, 2) understanding current performance, 3) planning, 4) studying others, 5) learning from data, and 6) using findings. It emphasizes that benchmarking is not about copying others but using it as an improvement tool and continuous process to innovate and pursue new ideas. Benchmarking can improve both efficiency and effectiveness when best practices are identified and implemented.