ON the importance of benchmarks and entitlement values
Benchmarks and entitlement values provides measures that help businesses understand where they stand and within which part of the business there is room for improvement.
Benchmarks
Benchmarking’s definition is the evaluation of something with comparison to a standard.It turns out that such a simple process is one of the best analytical tool out there. The devil is however in the details and finding what should be considered a standard for something turns out to be quite a challenging tasks.
Benchmarks help you get an understanding of how you compare versus what usually similar products, companies, initiatives or processes. They give you a sense of how you are performing in relative term and provide some understanding of what are you strength and weaknesses and what can be improved. Benchmarks have for instance been setup to measure productivity in car manufacturing, used to understand sales performance or for instance how customer perceive you compared to the rest of your industry.
When comparing values, an entire process of normalization needs to happen to provide measure estimates that are comparable. Sometimes a normalization process might proved in itself a bit biased, let’s consider for instance comparing videos shared on Facebook and Instagram, Facebook limits…
