A business owner’s fundamental role is to grow a business to increase revenue, profits and wealth. In order to do this you need measure and control performance. benchmarking is the process of comparing your key financial and operational results against industry, peers, and then your own past performance to measure improvement or as an early detection of potential issues. The outward appearance of businesses in various industries may be dramatically different and the various ratios and metrics may have different names but the essence of identifying and measuring key performance indicators is identical whether it be sales per employee, gross margin percentage, net margin percentage, SGA as a percentage of sales, ROI, ROA, ROE or ROC. The critical issue is that we understand the key drivers of the business and how to measure them.
In our Peer benchmarking ReviewTM you will collaborate with 10-12 owners of non-competitive businesses from your industry to compare metrics, learn best practices, and develop specific plans to measurably improve your financial results. Each group typically meet twice a year. The founder of peer benchmarking, Ron Sturgeon, attributes most of his business success to this dynamic process he participated in for over 10 years. Of the entrepreneurs who participated in his group it was no coincidence that some of them became largest operators in the industry. Not one of the original owners dropped out in the decade plus that the group existed and all remain great business associates and friends still today.
In a typical peer benchmarking reviewTM, you and your peers will write your metrics on a white board (every peer signs a confidentiality agreement), and then analyze them. Someone in the group will have a metric that shows more income per employee or per square foot indicating their business is doing something better that than the rest of the group. That person will then share with you how this superior performance was achieved giving you incredible insight and understanding of the critical issues of success. Another peer in the group may have lower operating expenses as a percentage of sales than everyone else; he or she will discuss the strategies and tools used to achieve these results. Our peer review dashboardTM greatly enhances this process and heightens the focus of the group meetings. The peer benchmarking reviewTM then will analyze the strategies and plans of each peer to grow their business and bottom line profits. Our growth matrix optimizerTM is another exceptional enabling tool used by peers to measure and the complexity and impact of implementing and executing these strategies. You then leave with toolset of strategies, metrics to grow your business and measure your progress and performance our benchmarking path forwardTM
A business planning is a formal statement of a well researched business opportunity with a clear set business goals to realize this opportunity by implementing and executing plan of these goals. All successful entrepreneurs like Ron Sturgeon will tell you that the value of business planning lies within the process of the planning rather than the finished product. And so many aspiring entrepreneurs get this wrong. They show up at an investor or banker meetings with an impressive looking document that they spent more money on than should have and are amazed when they do not get funded. Seasoned entrepreneurs are quickly able to recognize good business opportunities and judge a good execution plan.
At a peer benchmarking reviewTM you and your peers will develop and leave with an excellent business plan. In fact it will be the best business planning session you ever participate in. You together with 10 to 15 of your peers who have an intimate knowledge of their business will discuss how to grow your business, what works and what does not work and how to implement your growth strategies. The value of such a dynamic and rigorous facilitates process is enormous. Using our supporting business tools growth matrix optimizerTM, Benchmarking Review DashboardTM and benchmarking path forwardTM you may not have the best paper based business plan ever produced but you will have been through the best business planning process available today.
A business owner’s fundamental role is to grow a business to increase revenue, profits and wealth. In order to do this you need measure and control performance. The art of excelling in any business is executing a relevant strategy and success business owners like Ron Sturgeon passionately tell you that it is all about execution. performance management is the essence of our Peer Benchmarking ReviewTMwhere you will not only learn from your peers what is important and why they outperform you in certain aspects of your business but it will set your goals help set your goals for the next meeting when you will report back to your peers on your performance. Performance Management is as much about measuring performance using performance indicators as it about developing a relevant business strategy and executing it. Peer Benchmarking has accordingly developed our peer review dashboardTM which helps business owners with their fundamental role of Performance Management. The Peer Benchmarking Dashboard allows you not only to measure yourself against your peers but it also allows to quickly detect the root cause of underperformance. It also enables you to develop forward looking scenarios with a clear visualization of what your business will look like in the future.
You are guaranteed to leave with a valuable insight to Benchmarking, Business Planning for the overall Performance Management to grow your business.