Many companies use benchmarking as a means to drive process and productivity improvement. Most industries publish benchmarking data including financial, productivity, asset, market growth, and other criteria for comparing your company to others of similar revenue or asset value in your industry. The most common measure is industry average.
The problem is, by comparing yourself to others and to industry averages, you’re accepting average as a goal. Shouldn’t we strive to be better than average?
Rather than emulating others, be innovative and adopt a strategy that moves you beyond what others are doing. And don’t just try to be better than average, be way above average. The Risk Management Association (RMA) book is a great source of comparative financial information, and provides not only averages, but also top quartile information. This way you can benchmark yourself against the top performers in your industry.
Are you and your company striving to be average, or to be industry leaders?
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