Benchmarking – use it as your compass! - Succession Plus

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Benchmarking – use it as your compass!

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Benchmarking – use it as your compass!

By , October 9, 2009

Many business owners biggest problem is they fail to focus on the 2 -3 key value drivers that can really make the differenec – they are caught up in a long list of things they have to do ( often that they think they have to do ! ) . Many management gurus have written on this topic – Stephen Covey says “put first things first ” – that theory is fine if you know what comes first, Ken Blanchard uses the One Minute Manager to “teach an unforgettable lesson: how to save time to do what you want and need to do ” – again great in theory as long as you know what it is you actually need to do.

Benchmarking can solve this problem by identifying what it is you should be doing – most benchmarking reports will include a profit gap analysis of some type – a simple chart that shows what are the most important changes you can make and the direct effect they will have on profitability. As a leader in a business this is a very easy to read compass – fix this issue and your profit will improve by $X – the first thing will become obvious if you use benchmarking to identify the vlaue drivers within your business.

Craig West

Craig West

Managing Director | Succession Plus

Craig West is a strategic accountant who has over 20 years’ experience advising business owners. His background as a CPA in public practice, provided invaluable experience in the key issues of concern to business owners. Following 6 years of study to gain two masters degrees, Craig focused on Capital Gains Tax (CGT) for business sales advising on strategic management of tax issues. This experience formed a very strong view that business owners (and often their advisers) were unprepared and unaware of the steps required to prepare a business for exit.

Craig now acts as a strategic mentor for mid-market business owners and has written four critically acclaimed books on employee incentives, succession planning, asset protection and exit strategies. Craig has conducted numerous seminars and keynote presentations throughout Australia & internationally, including adviser education programs for the Institute of Chartered Accountants and CPA Australia.