In an article published in LPM magazine in December I took a look at benchmarking, questioning the value of traditional benchmarks, and re-visting my favourite theme of aligning all measurement with the firm’s own objectives.
“Benchmarking is the practice of comparing an organisation’s performance metrics with those of similar organisations, to understand how they compare with best practitioners and identify where improvements are possible and desirable.
Surely any organisation should benchmark itself in the context of its own objectives. Benchmarking is just a comparison, and should be focused on the things that matter. And what matters to your firm? If it’s clients, how do you compare with your peers in terms of net promoter score? If staff engagement is important, how do you measure up on your employee turnover or your Bradford factor score?”