Before we can discuss the benefits of peer benchmarking, let’s take a moment to discuss what benchmarking really is with regards to the business world.  Read on, and if you have questions or seek more information, we invite you to contact us at (817) 834-3625, or (817) 999-0980.

What is benchmarking?

We are going to dip into the world of Major League Baseball for a moment, so hang with us.

One of the greatest baseball players of all time was Ted Williams, the “Splendid Splinter” of Boson Red Sox fame.  He finished his playing career with a .344 batting average, 521 home runs, and a .482 on-base percentage, the highest of all time.

Those statistics are a benchmark for other professional baseball players to compare themselves to.  They are, collectively, a standard of excellence for anyone who picks up a bat in an organized game of baseball.  They are easily recognizable.  They are relatable.  If you get a base hit 34% of the time, you are achieving excellence.  If you get a base  hit less often than that, you are falling below the excellent benchmark set by Mr. Williams.

Benchmarking in business, then, is a practice of comparing business statistics to the industry bests using a strategic analysis tool.  It is a way of comparing your business’s performance against the best from other companies in your field of business.

Of course, we see this in all walks of life, including our education system.  Children are graded and evaluated according to learning benchmarks set by the Department of Education.  Standardized testing is a way of measuring a child’s learning level against pre-determined benchmarks.

What, then, is peer benchmarking?

Peer benchmarking consists of setting short term goals and being held accountable by a group of your industry peers. Learn what does and does not work from other business owners in your industry.

And what are the benefits?

With peer benchmarking, you are not alone with a stack of computer printouts and statistics.  You can compare your business performance with the performances of other businesses in your industry, and you can share information about what does and does not work.  Why does Business A have a higher cost per unit of measure than Company B?  What is Company B doing differently which may benefit Company A?  It is continuing education in the business world, and it works.

How does it work?

To break it down to its basic components, benchmarking consists of these steps:

• Identify problem areas with your company
• Identify other businesses which are leaders in those particular areas
• Determine what they do differently in these industry benchmarking groups
• Implement new and improved business practices for your business

Peer benchmarking is a proven tool which allows all participants to grow.  It is a “scratch my back and I’ll scratch yours” business practice, and it works!

Call us for more information about peer benchmarking!

About Peer Benchmarking

Ron Sturgeon, founder of Mr. Mission Possible small business consulting, brings over 35 years of entrepreneurial experience to the table, together with an extensive international resume in consulting, speaking, and publishing.

As a consultant, Ron shares his expertise in acquisition, strategic planning, capitalization, compensation, growing market share, succession planning, and more in his signature plain-spoken style, peppered with humor but always focused on the bottom line. As a peer benchmarking leader, Ron provides non-competing enterprises direct access to field-proven, high-profit best practices well ahead of the business news curve.