When people can be bothered to do it, benchmarking is about as good as it gets for assessing organizational health and deciding what steps need to be taken to maintain or improve growth within the company. A post at iResearch Services provides four techniques for benchmarking, for those with the fortitude:
- Identifying areas that need change
- Analysis of financial data of bygone years
- Zeroing in on factors directly affecting the profit
- Identifying of growth opportunity
Growth by Design
As great as it would be if you could magically improve every aspect of your business simultaneously, that is not possible. That is why it is so critical to, from the outset, know which areas you most want to improve. This allows you to compare yourself against competitors or similarly sized operations to yours in the most relevant areas. Next, about the second point, the article states:
Analysis of the company’s earlier year’s data will throw light on the growth or decline or profit. This in turn if compared with the strength of the staff during the same period will reveal the efficiency or non performance of the staff during the respective period.
Furthermore, a review of the business financial statement also helps to analyze the quality of the service or product, the employee progress report, customer feedback forms.
Based on the analysis of the earlier few years’ financial data, business managers can take the needed steps and actions to improve the business.
Proper benchmarking will allow you to locate the factors that really drive or detract from profit via means like internal data comparison, which can be used to pair low-profit periods with irregularities that occurred in that timeframe. What will ultimately happen is that you can compare present data with future goals and trace the trajectory of what is needed to hit those goals.
You can read the original post here: http://iresearchservices.com/4-effective-benchmarking-techniques-business-growth-strategy/