The use of benchmarking systems to monitor and improve performance metrics is often hampered by a lack of real comparability due to external factors. This can be remedied by creating models for the benchmark that take into account these external factors.
Performance metrics like realised prices, resources spent on a customer, revenue per sales area, can vary hugely. Possible performance issues are clouded by external factors:
Create a list of the main product features and differentiating attributes, e.g.
A fixed baseline and acceptability-corridor, based on the agreed influencing factors, is then established. Performance levels are now tracked against this new fair benchmark.
The responsible managers are provided with regular reports about the performance of their area against the benchmarks.
Boris Vaillant - Quantitative Consulting 17