Raising the bar – the power and value of benchmarking
POSTED ON
August 5, 2011
My first college internship was with a Houston-based company that specialized in corporate benchmarking studies. I was immediately intrigued by the notion that companies would be willing to share the secrets of their success to help others – often direct competitors – learn and model themselves accordingly.Since then, I’ve worked on a number of benchmarking efforts, and recently wrapped up two benchmark studies for two very different clients. For both of these studies, our team made cold calls to a number of leading organizations asking them to share details about the way they work, how their teams are structured, challenges they’ve faced and how they overcame them. In the end, every single person we contacted agreed to speak with us, and shared information willingly, often spending much more time talking with us than the 20 to 30 minutes we initially requested. As a result, we were able to provide recommendations to our clients that were based on proven strategies from leading organizations – helping to ensure their own success.I was surprised that so many individuals were willing to participate in these studies. Sure, we were only asking for small amount of time, but we’re all busy enough to know that’s not something we’d give up easily to a complete stranger. To me, the main reason benchmarking works so well is that people love talking about themselves – even more so when they're told they’re a model for industry best practices. So the next time your company is thinking about any type of organizational change, consider doing some benchmarking to gather outside knowledge and experience. Begin by identifying a few companies you believe to be leaders in the particular area you’re studying, and then try to find the right people to talk to at those companies. Reach out via email and phone to schedule a brief interview, and then analyze the feedback you gather and adjust your approach accordingly.Here are some tips to consider before you embark on a benchmarking study:
- Choose wisely: Don’t try to contact every company in your industry. Instead, focus on a handful of organizations that are known to do well in the area you’re examining. You’re better off trying to speak with three companies that do it really well than a dozen companies that are just okay.
- Work your network: Think about everyone you know, personally and professionally. Among those people and their personal and professional networks, chances are you can find someone at one of the companies you’re interested in benchmarking. Sometimes knowing just one person can help get your foot in the door.
- Be respectful: Once you’re conducting interviews, stick to the timeframe you originally requested. If you’re having a fruitful conversation and think you need a bit more time, pause and ask the participant if they can spare a few more minutes.
- Pay it forward: Offer to share the results of your study with each of the participants. This is often a nice incentive to encourage them to participate. Even the best of the best want to get better, and most companies would appreciate learning more about what their peers are doing.