Insights on Benchmarking
November 23, 2008 by jscott
Many organizations are undergoing benchmarking as a means to identify opportunities for efficiencies and cost savings. The fact is there is tremendous interest and stakes in knowing how our organization compares to others. Consultants respond by delivering products that the market desires – remember that. Benchmarking is a tool – that is all that it is. Sometimes it turns into a weapon unfortunately and as a consultant who – I admit – participates in benchmarking projects from time to time – I have some words of advice. First of all, make sure you understand the approach the consultant firm is taking, in particular who you are being compared to and how they allocate costs. Also, don’t be afraid to ask tough questions. A strong consulting firm can and should be able to back up their methodology.
