1. Identify Key Metrics: Determine which key performance indicators (KPIs) are most relevant to your business goals. 2. Data Collection: Gather data from both internal and external sources to have a comprehensive understanding of current performance levels. 3. Set Realistic Targets: Ensure that the benchmarks set are achievable and realistic, considering the current state of the business. 4. Periodic Review: Regularly review and adjust benchmarks as necessary to reflect changes in the business environment and internal capabilities.