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Should You Benchmark?
Should you benchmark your marketing and
operations? Yes
Benchmarking is important as a measurement tool. It
highlights strengths and weaknesses. It provides tangible data for
planning and implementing change. Sometimes benchmarking by itself will
improve a companys performance. Reviewing processes, procedures, and
results can stimulate productivity and inspire change by creating
awareness.
and no. Traditional
benchmarking with industry standards and best practices is dangerous
unless you understand every nuance. Benchmarking originated as a
methodology for comparing similar companies. It is useful for a company to
look at industry leaders and model best practices. Unfortunately, there
are few companies in the direct marketing industry with enough similarity
to effectively utilize traditional benchmarking.
The best benchmarks
are established internally and utilized as change agents to improve
service, productivity, and profitability. The first benchmarking
initiative is a three-step process. It begins by establishing a baseline.
This is done with an internal marketing and operational audit. Next,
improvements are planned, tested, and implemented. The final step is to
perform another audit and compare the results with the baseline. Once the
initial process is complete, audits should be performed on a regular basis
to insure continuous improvement.
Tips for successful
benchmarking:
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Plan the
benchmarking initiative carefully. What are the objectives? What needs
to be measured? Who are the players? When will it be complete?
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Define your
objectives by internal needs instead of external standards. There are
common items that should be included in every initiative: Order
dynamics, productivity analysis, and process review. There are also
unique items that should be included. Make sure that you include the
items that differentiate your company.
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Be specific
with benchmarking expectations. Improve order turnaround 10%; reduce
fulfillment costs 15%; and increase acquisition 5% are all specific and
measurable. General goals usually result in no improvement.
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Reward
employees for successful initiatives. It creates excitement, improves
morale, and increases benefits.
- Present the
initiative as a method for improving work conditions and service.
Employees are less resistant to change when they are participating in
the process and understand the objective.
The key to successful
benchmarking is to clearly define the objectives and focus with
consistency and collaboration. Order and customer dynamics show how well
you are serving the customer. Fulfillment and marketing costs show how
well you are serving your company. Find the balance that keeps everyone
happy.
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