Do you know how your business is performing when stacked up against competitors? Where you could improve, what you are doing well and what you could do to steer your ship in the right direction?
The good news is, there’s no need for guesswork. Benchmarking can answer these questions for you.
Here are our top five reasons why your business must benchmark:
Benchmarking allows you to dive in deep to find out why top performers in your industry are so successful. You’ll be able to analyse the key behaviours and ingredients for success, so that you can emulate them.
Benchmarking enables you to identify the strengths and weaknesses in your own business. Without this insight, you could be traveling blind and making business decisions without the right information.
Benchmarking provides objectivity, so that you can take an objective view of your business. It’s difficult to do this otherwise – you may be just too close and emotionally invested in your business so making it difficult to stand back and be unbiased. The most successful businesses take off the rose-tinted spectacles and make realistic assessments about their performance.
Benchmarking empowers you to understand personnel productivity in detail, and subsequently, set reasonable expectations for staff productivity. There’s no benefit in setting expectations that simply can’t be met by humans. Likewise, it’s foolish to set expectations that are too low to drive real value in your business. Comparing your staff productivity to more successful players will help you identify your productivity gaps.
Benchmarking can also help you assess performance in the area of finance. A wide range of expenditure questions can be answered to help you make strong conclusions – on anything from average industry salaries, to the cost of office supplies.
Like any management activity that’s worth doing, benchmarking takes a little effort. But outside help is available. If done right, benchmarking holds the key to future prosperity, for you and your business.