Benchmarking: Your GPS to Business Success
Rose Report: Issue 35
Often, small- to mid-size companies base their business’ success on revenue. After all, if your revenue is growing, you will continue to succeed, correct? Not always. Even growing companies face uncertainties on the road from where they are—to where they want to go. Fortunately, there is a navigation tool known as benchmarking that can help companies start their journey to greater success.
Let’s assume you are taking a cross country road trip. Before you go, you use your GPS to make sure you know the best route, the number of miles it will take to get to your destination and if there are any slowdowns along the way. Without GPS, you are simply not well informed on what lies ahead, and it could take twice as long for you to reach your destination.
Like GPS, benchmarking uses today’s data-driven technology to provide real-time insight. Utilizing this business performance tool is the first step in knowing the direction to take to become an industry leader. Through benchmarking, you can discover whether your company is performing below or above industry standards—whether by size, location and more. This information can then be used to compare your company’s performance with the best levels being achieved.
The goal of benchmarking is to start the process of improving your company’s performance by growing revenue and profit. Once a benchmark is established, further analysis and comparison of results will help you identify your company’s strengths as well as areas that need to be further developed.
Benchmarking is an important first step in the continuous improvement cycle. While benchmarking may be the GPS to reaching your business destination, establishing key performance indicators to maximize performance are your vehicle to reaching your goals and gaining a competitive advantage.
Understanding your value.
The path to greater business success is recognizing your company’s fullest potential. At Rose Financial Services (RFS), we are focused on providing our clients with the financial clarity they need to make informed decisions, increase profitability and grow their companies.
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