If you are running a business, you must have set certain objectives to achieve. In modern competitive scenario, it is not just enough to achieve those set objectives. You have many more things to look upon. You need to compare your performance with your competitors to assess your real position in the market.
Besides assessing changes in the basic financial aspects like cash flow, working capital, operating profit, cost base etc., you also need to look at the issues like customer services, employees' satisfaction level, improvement in product etc.
You Can Go For Benchmarking:
For assessing the current performance, benchmarking is considered as a useful and objective management tool. In benchmarking, a business compares its performance with its competitors or market leader or against a best -practice hypothetical model.
Most of the times, a comparison is conducted on products and services, sales, costs, pricing, profitability, quality control, number and types of customers, strategies etc.
Benchmarking is the easiest way to know the strengths and weaknesses of business. After assessing the current market share, you may develop certain strategies for improving the performance and overcoming the weaknesses.
Whether you are a service provider or a product manager, whether you are running a small business or you are a multinational company, you can opt for benchmarking anytime. But, it should be taken as a process of nonstop improvement.
How to Carry Out Benchmarking:
A business can conduct benchmarking in several ways like:
It can benchmark internally by comparing the performance of different departments exiting within the organization.
An external benchmarking can be conducted by using the industrial norms. This way a business can compare its performance with other similar businesses.
An external benchmarking program may also prove beneficial. Trade Associations, business support organizations and business consultancies conduct benchmarking programs for all kinds of businesses.
The Confederation of British Industry (CBI) also offers benchmarking. It uses the tool of 'probe" i.e. promoting business excellence. It covers manufacturers, environmental, health and safety management, people management and service excellence.
Depending upon your requirements, you can choose any of these methods. But, you have to keep in mind that the practice of benchmarking is successful only when an action plan is carried out to improve the performance. Merely assessing the performance is not sufficient.
You can also take help of special websites like:
● The Benchmark Research Website
● Institute of Directors Website
● Benchmark Index Website
● Trade Association Forum Website
● Comparison International Website
An average student has to compare his performance with other students to improve; similarly, a business has to compare its performance with its equivalents to progress. A regular performance appraisal keeps the business fit and fine.
Besides assessing changes in the basic financial aspects like cash flow, working capital, operating profit, cost base etc., you also need to look at the issues like customer services, employees' satisfaction level, improvement in product etc.
You Can Go For Benchmarking:
For assessing the current performance, benchmarking is considered as a useful and objective management tool. In benchmarking, a business compares its performance with its competitors or market leader or against a best -practice hypothetical model.
Most of the times, a comparison is conducted on products and services, sales, costs, pricing, profitability, quality control, number and types of customers, strategies etc.
Benchmarking is the easiest way to know the strengths and weaknesses of business. After assessing the current market share, you may develop certain strategies for improving the performance and overcoming the weaknesses.
Whether you are a service provider or a product manager, whether you are running a small business or you are a multinational company, you can opt for benchmarking anytime. But, it should be taken as a process of nonstop improvement.
How to Carry Out Benchmarking:
A business can conduct benchmarking in several ways like:
It can benchmark internally by comparing the performance of different departments exiting within the organization.
An external benchmarking can be conducted by using the industrial norms. This way a business can compare its performance with other similar businesses.
An external benchmarking program may also prove beneficial. Trade Associations, business support organizations and business consultancies conduct benchmarking programs for all kinds of businesses.
The Confederation of British Industry (CBI) also offers benchmarking. It uses the tool of 'probe" i.e. promoting business excellence. It covers manufacturers, environmental, health and safety management, people management and service excellence.
Depending upon your requirements, you can choose any of these methods. But, you have to keep in mind that the practice of benchmarking is successful only when an action plan is carried out to improve the performance. Merely assessing the performance is not sufficient.
You can also take help of special websites like:
● The Benchmark Research Website
● Institute of Directors Website
● Benchmark Index Website
● Trade Association Forum Website
● Comparison International Website
An average student has to compare his performance with other students to improve; similarly, a business has to compare its performance with its equivalents to progress. A regular performance appraisal keeps the business fit and fine.
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