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03/07/2011

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Ryan Watkins

I would add to this argument that other companies are no more static than own -- thus if we implement in September 2011 what they are doing in March 2011 from our benchmarking study, then we are still behind the competition. They are continually changing and benchmarking will rarely help you get ahead. Just think of all the companies that tried to benchmark the iPod, only to later learn that Apple had moved on to the iPhone while the others were trying to "benchmark" what they were doing with the iPod. The competition may have made some money, but Apple continues to win the major market share.

Mike Kunkle

Will, first - massively respect your work. (Long-time reader, first-time caller.)

I linked here today from your post on Performance-focused smile sheets and benchmarking.

Having used benchmarking (carefully and prudently) with good success, I can't agree with avoiding it, as your title suggests, but do agree with the majority of your cautions and your perspectives later in the post.

Nuance and context matter greatly, as do picking the right metrics to compare, and culture, which is harder to assess. 70/20/10 performance management somehow worked at GE under Welch's leadership. I've seen it fail miserably at other companies and wouldn't recommend it as a general approach to good people or performance management.

In the sales performance arena, at least, benchmarking against similar companies or competitors does provide real benefit, especially in decision-making about which solutions might yield the best improvement. Comparing your metrics to world-class competitors and calculating what it would mean to you to move in that direction, allows for focus and prioritization, in a sea of choices.

It becomes even more interesting when you can benchmark internally, though. I've always loved this series of examples by Sales Benchmark Index:
http://www.salesbenchmarkindex.com/Portals/23541/docs/why-should-a-sales-professional-care-about-sales-benchmarking.pdf

Stay the course (bad pun partly-intended), Will. Look forward to that book.

Mike

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