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See If Your Business Measures Up

Even a profitable company should be looking for ways to be more efficient. There is usually plenty of room for improvement, especially when you compare your outfit with other operations in the same industry or other “success stories” in your community. So, the next question is: How do you bring your company up to the next level?

One possibility is to use the business tool known as “benchmarking” (also called “best practices”). This is a process that can help bridge the gap between great ideas and great accomplishments.

How it works: Although there are several potential variations on the basic theme, typically you begin by identifying another company, or a part of your own company, that has achieved significant results through similar opportunities. The process requires you to systematically study the other operation's achievements and practices. After you have determined the best practices, you can develop and implement procedures that will help you improve performance.

Benchmarking is more than just discovering the best practices for a company. It includes setting goals, comparing data and facilitating concepts. It targets appropriate ideas and puts them into action.

How did benchmarking evolve? Traditionally, business managers would study a competitor's product to determine how and why it was superior. Then they began to realize that they might not be asking all of the necessary questions. Eventually, it was ascertained that the competitive advantage stemmed from a number of factors:

*The timeframe for shepherding a product from the design stage to market;

*Costs involved at each step of the process;

*The nature of the procedures or formulas being used;

*The systems for managing and motivating the staff; and

*Independent judgments about the product's value (i.e., whether customers will buy the product).

With benchmarking, your company can learn where its performance lags and where it should pinpoint its focus. This practice can eventually filter down to the bottom line. We can provide the assistance required in this area.

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