The problem with benchmarking.
Often I here businesses saying that they are better or worse (not often they admit to worse) than the industry. But there is a problem here.
If a business compares its data to even best practice within their industry I believe are missing the point.
The business that succeeds in an industry don’t just compare themselves to others but rather they change the game. They look for ideas from outside their industry and innovate. Innovation does not happen by just comparing to other like companies.
It is important to have the correct key performance indicators and to regularly monitor these but to get ahead of the curve it is necessary to have measures focused on what is important to customers.
KPI’s and the financial data used to compare to industry show only the result they do not necessarily show the systems operating in a business. This is where the innovation will come. By looking at what the customers really want and value and then working a way to deliver this effectively.
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