A recent study of work skill competitiveness and overall national competitiveness worldwide revealed that 17 countries are more competitive than Australia. Some countries have a relative resource advantage and will be able to extend access to education and training more effectively than Australia will, and some countries have targeted education and training to the emerging needs of their industry base more successfully than Australia has. Analysis of the links between education and training and industry is distorted by a focus on the supply side of the education and training work skills equation. Strategic benchmarking is a process of comparative analysis, target setting, and action designed to focus on continuous improvement. In the case of work skills, benchmarking requires the following: identification of profile gaps, selection of gaps that appear to be linked to industry performance, and development of action strategies to close selected gaps. A framework for comparative evaluation of education and training reform across countries and regions has been developed that focuses on employment outcomes and industry performance and includes questions examining external benchmarks (to address the reality that education and training reform and industry reform are occurring in many countries) and internal benchmarks (to address internal processes). (MN)