In today’s world, competition amongst the various emerging brands is reaching its sky-high limit. So, benchmarking techniques are something which is very important in order to increase the brand’s popularity and to stay in the competition.
Benchmarking is basically a complicated process that might be used by a large number of companies use in order to ace the best practices and for outpacing the competition.
In fact, benchmarking is something that is used by most of the business in the knowledge commerce market. If you are a personal development expert who specializes in productivity. The businessman knows how to motivate the people out their people in order to get the things done and for achieving their s then he or she needs to measure the performances against the metrics that make sense.
By conducting a competitive benchmark strategy, one can understand his or her own strengths in a better way.
- Here Are Some Amazing Examples Of Various Benchmarking Techniques Used By The Brands In Order To Increase Brand Popularity:
- Process Benchmarking:
- Strategic Benchmarking:
- Technology Benchmarking:
- Performance Benchmarking Techniques:
- Identify What Area Needs Improving:
- Look For High Performing Organizations:
- Analysis Of Finance Data Of The Bygone Years:
- Zeroing In On The Factors That Affect The Profits:
- Growth And Product Line Breakdown– The Low-Hanging Fruit To Growth:
- Productivity – Revenue Per Employee –
- Functional Role Breakdown
- Operating Expense Breakdown – Opening Eyes To Improvement Opportunities
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Here Are Some Amazing Examples Of Various Benchmarking Techniques Used By The Brands In Order To Increase Brand Popularity:
Process benchmarking refers to a better understanding of the process, comparing the performance with the other rivals in the markets against the internal and external benchmarks, and finding various lucrative ways for optimizing and improving the processes.
The actual idea is that by understanding the ways how the top and pioneering performers complete the process.
One can always find some better ways to can for making his or her own processes more efficient, quicker, and more effective. In other words, the company needs to look at the other companies that engage in similar kind of activities and for identifying some of the best practices which can be implemented to the company itself for improving themselves.
Though process bench is a different type of benchmarking but it is often derived from the performance benchmarks.
Process Benchmarking is something that is effectively used by Facebook for measuring their performance strategies and marketing processes.
This kind of benchmarking technique tend to compare various strategies, business models, business approaches, etc. for strengthening the business’ own strategic planning and for determining the strategic priorities.
The idea here is to conceptualize and understand what planning and strategies should be used for making a company more successful and for enhancing the performance of various business units and then for comparing the strategies with that of their business in order to identify various ways for becoming more and more competitive in the market.
Many managers out there use these types of benchmarking in order to identify the best way for competing in the market. During the process, the companies identify the strategies for winning that other successful companies use and apply them in their business.
Technology benchmarking is very effective and one of the best examples of benchmarking. A database firm or a company benchmarks various query performance of the products against the competition on a continuous and a regular basis as a part of the product development efforts.
While dealing with various technologies, time is a very crucial factor for excellence in market performance. Meidata assists managers in evaluating new technologies in the fields of their defense, performance, energy, environment, etc. and adapt the various solutions and products to the new trends in the market.
An Example, The exclusive combination of deep technological understanding along with various smart intelligence analysis abilities allows the Meidata to provide with valuable insights and much focused reports, making sure a leading a market position.
Performance Benchmarking Techniques:
Performance benchmarking techniques are concerned with comparing a company’s services and products. This benchmarking tool basically focuses on the quality, speed, features, reliability, price, design, customer satisfaction, etc. But, it can measure anything which has measurable metrics, inclusive of process.
Additionally, performance benchmarking also determines how effective and effective the services and products of the company are with respect to those of the competitors. This kind of benchmarking techniques is very important for companies out there in order to stay in the competition.
The analysis of the performance is indeed necessary for meeting all the shortcomings faced by the companies.
For example, “Apple” is a company with the best performance-based benchmarking technique. This is the reason why ‘Apple’ is still considered as an unbeatable company.
Identify What Area Needs Improving:
Many companies use their critical success factors as a guide in order to identify the areas in order to improve and focus on those very areas which are facing some shortcoming or are underperforming.
Every company has a certain desired expectations and targeted goals. When the business does not stand up to their expectation and fail to achieve the goals, there should be use of several benchmarking techniques in order to find the weak areas of the business.
This helps the company in order to target specific areas in the organization that need some improvement in some specific areas. It should be made sure that the factors like the quality, costs, and services when the company is targeting an improvement.
For example, Dominos has been once facing continuous complaints from their customers regarding the lack of cheese on their pizzas. So they started working on it and posted many pics on various social media platforms.
Look For High Performing Organizations:
Many companies tend to look for organizations that perform well in that area. They use professional contacts and networking in order to find the appropriate organizations. Going out the side the industry can put a light to how the company is doing things as compared to how the other industries are managing and tackling those problems.
This kind of networking can be done effectively in many social media platforms like, facebook, Instagram, twitter, Linkedin etc.
For example, American healthcare services have improved many processes by means of learning from the hospitality, airline industries and manufacturing. The recent posts and pictures shared by them in Facebook is the example of how they are progressing in their works.
Analysis Of Finance Data Of The Bygone Years:
Analysis of the company’s data from the earlier years will just simply throw light on the growth or decline or profit made by the company. And in return of that, this will actually reveal the efficiency of the non-performance of the staff during the time of the respective period.
Again, a thorough review of the business’s financial statement will also help the company to analyze the quality and the effectiveness of the services offered by the company. Also, they will get know about the progress report of the employees, customer feedback and many more.
Based on such an analysis of the past years’ financial data, the business managers out there can take the required actions and steps in order to improve the business.
Zeroing In On The Factors That Affect The Profits:
This technique of benchmarking is used by many effective and strong companies out there in order to zero in on the factors that are directly responsible for causing any kind of ups and downs or highs and lows on the profit of the business.
By using such internal data comparison, a company or an organization can easily identify all the low profit period and also can determine the factors that caused the same, for example, poor quality of the products, downsizing the sizing the staffs, etc.
Such noting of these kinds of findings can actually help in order to taking appropriate steps for overcoming those areas, such improving the product qualities, increasing the strength of the staffs etc.
An Example, Amazon can be considered as a great business over here and can be taken as a perfectly suitable example that makes the use of this benchmarking technique in an effective manner. It has definitely raised up the qualities of the product as per various ads on Pinterest.
Growth And Product Line Breakdown– The Low-Hanging Fruit To Growth:
When the growth strategy is being talked about, it is very critical to understand the way how a company or an organization’s products such as growth and penetration stacks up against the competition.
The strategy of product line penetration strategies necessitates organizing the products and the service lines in the segments and for calculating the percent make up for the whole revenue.
While conducting this analysis, it often goes smoother if the company first have the industry benchmarks, so that the company can segment the products and the services in a more efficient manner, in order to correspond with the benchmarks.
An Example, Microsoft can be a great example here which can be cited that make the best use of such benchmarking techniques. It is one of the best known companies that makes the most efficient use of such benchmarking techniques.
Productivity – Revenue Per Employee –
One of the important and frequent questions that often comes up with the management team is whether they have the right number of people. While there are often some frustrations when asked, it is one of the easier questions to answer with the help of some simple productivity, that is, revenue per employee benchmarking.
The below productivity benchmark often gives a historical perspective and forecast on productivity. By merely comparing the company’s revenue, per employee, against the Industry is indeed eye-opening and can help you in in the event of a headcount reduction or headcount planning.
There are many companies out there that want to know the reason behind the unprofitability, and once they start seeing the productivity benchmark analysis, the answer become clear and vivid.
As Example, This benchmarking technique is effectively used by the company “Nike” in order to keep a watchful eye on their revenue per employee.
Functional Role Breakdown
If the productivity of the company lags that of its industry, then the next effective step is to understand whether the company has the right people playing the right roles and positions. Initially, the first benchmarking analysis is the span of control, which is the ratio of the individual contribution to all the managers of a company.
Typically it is considered that a span of control of 7-10 is ideal, but it could be 15-20 for more retail, production, and some services industries. The key to this analysis is to segment the managers in an organization with only 2 to 5 direct reports, and then understand the drivers of the various low span of control.
It goes without saying that benchmarking the functional roles of the entire company to the industry can be quite informative.
For example, FedEx is a company that typically scrutinize the financial and all the legal roles as those are often overhead and should be as lean as possible.
Operating Expense Breakdown – Opening Eyes To Improvement Opportunities
Most of the top strategies and techniques of benchmarks is operating expense breakdown. Digging deep into the cost structure of a company or an organization always tends to reveal various insights and opportunities.
While the techniques of benchmarking are typically straightforward, it often takes ample time, given the mapping of general ledger categories of the company to the benchmarking categories.
But, once those analysis are completed, it is often eye-opening to the management teams, and can also these lead to both short-term and long-term improvement efforts to lean out some portions of operation to re-invest in those under-funded areas.
An Example, Microsoft is a company that make the best use of these techniques of benchmarking in the most effective manner. It is very important in order to keep a track record of all the improvement opportunities for the company as well.
The above benchmarking techniques can be used by various companies in order to increase the popularity of the brand. In addition to the various types, there are many ways you can do benchmarking.
It is vital to select the most optimal way because it reduces the expenses of the activity and improves the chances of finding the ‘best standards’ that you can rely on.
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