|Automotive Benchmarks (continued)
|Essentially, benchmarking provides just a snapshot of the
performance indicators of your business and helps you
understand where you are in relation to a particular standard.
Copyright© 2008-2009 Automotive Dealers Network. All rights reserved.
Michael is a Fixed Operations & Business Development
Consultant with the accounting and automotive
consulting firm of Mironov, Sloan & Parziale. He is a
speaker, author, trainer and facilitator with over 30 years
of experience. He authored "RESULTS" Service
Management Training Program and others.
|The result is often a business case for making changes in order to make improvements. It is highly suggested that
benchmarking should be mostly used to measure performance using a specific indicator (cost per unit of measure,
productivity per unit of measure, cycle time of x per unit of measure or defects per unit of measure) resulting in a
metric of performance that is then compared to others.
|SUPERIOR DEALER SOLUTIONSsm
Also referred to as "best practice benchmarking" or "process benchmarking", it is a process used in
management and particularly strategic management, in which organizations evaluate various aspects of their
processes in relation to best practice, usually within a peer group defined for the purposes of comparison.
This then allows organizations to develop plans on how to make improvements or adopt best practices,
usually with the aim of increasing some aspect of performance. Benchmarking may be a one-off event, but is
often treated as a continuous process in which organizations continually seek to challenge their practices.
How Do You Compare?