A modern IT organization does not succeed by project or service uptimes, but by their revenue growth and competitive position. However, across the industry, there are several roadblocks to growth. IT leaders are involved in multiple tasks and do not have time to strategize new initiatives. Benchmarking can help you improve business performance, only if you avoid mistakes. In this blog article, Bernard Marr explains benchmarking pitfalls and ways to overcome them.
Acknowledge the Downside
Benchmarking is a considerable approach to improve performance. Nonetheless, it has some vulnerabilities that require immediate care. Let us observe them:
- The benchmark data outlines only the short and long-term goals of an internal team or market competition. Thus, it lacks notifying vulnerabilities that need immediate intervention.
- Lack of measurement makes it difficult to draw comparisons between shipment and delivery of the finished product. So, analyzing progress and profits become difficult.
- The shortage of real-time industry analysis makes it difficult to observe the growing competition. It is easy to collect industry data, but not the reliable one.
- Benchmarking defines what has happened already, but not what is happening. So, you lose track of future endeavors and performance indicators.
What Is The Solution?
To overcome these evident issues but never successfully addressed roadblocks, you must learn to use benchmarks more appropriately. Follow these steps of transformation to achieve success:
- Consider benchmarking as an element to measure performance, not as a tool to accelerate it. A mix of benchmarks, KPIs, strategies, and projects help you achieve improved performance.
- Focus on mapping out a strategic goal that identifies essential business operations and necessary steps. Create logical KPIs to keep track of business performance against strategic goals.
- Use internal and external benchmarks to draw a link between business strategy and performance measurement. Keep track of KPIs that are linked to your strategic goals and are efficient in measuring radical accomplishment.
- Use data to identify and foresee future performances. Use this information to strategize, project, and initiate smart changes to lift standards of subsequent events.
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