You are now ready to develop industry and competitive benchmarks. These provide valuable insights into how your business is performing. For example: If your business inventory turns slower than your competition, your ultimate costs will be higher. This insight provides you with data that will allow you to begin asking the team why inventory turns are slower. Benchmark data will help you begin to ask better questions that will lead to breakthroughs.
What is different about your business than what the competition is doing? Maybe your time to deliver your product to your customer is faster or slower than the competition. Maybe your response time in your customer service is slower or faster than others in your industry. These are merely data points that give your team information to improve or leverage your rankings for improved customer loyalty, the confidence to charge higher prices, or point out the areas that need drastic improvements in order to retain or gain a competitive advantage.
Benchmarking helps you keep an eye on your competitors. It also helps you engage your team in discussing the critical questions that will help you to focus on continuously improving your business results.