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The paper is devoted to the theoretical ground of benchmarking as a method for performance management. The concept, evolution, typology, a model and some practical aspects of benchmarking are described. Main advantages and problems for applying the benchmarking in performance management are defined. It is proved a variety of benchmarking lies in its types, which allow the improvement of various aspects of the enterprise due to different sources of improvement. Authors conclude that the main objective of performance management is to ensure continuous and sustainable growth of enterprise performance. And the benchmarking, both independently and in combination with other important tools like a motivation, is able to solve this problem.