Competition in every sector of the corporate economy is fierce. Every major company will have a corporate strategy that guides their every move. The most successful corporations recognize just how competitive their respective fields are. Part of their corporate strategy must include understanding their competition, but within that strategy they should understand how their company operates. What’s more, they should also understand how their company operates in relation to the competition. When a company needs help trying to figure out this sweet spot, they will often turn to an outside consultant. Benchmark consultants operate in a very specific area within this arena. 

 

Hiring a consultant is generally a good business practice for any number of reasons. It puts fresh sets of eyes and brains on your operation. In the best instances, consultants will be independent and impartial. The only reason they are there is to make your company better at what it does. Really good executives and managers know that bringing in a corporate strategy consulting firm should happen before there are problems that need fixing. Having trusted corporate consultants makes your company stronger, preemptively, which is crucial in the never-ending churn of corporate business.

  

There are two methods that high-end corporate consulting firms turn to as reliable measuring sticks for any company. Benchmarking and competitor analysis are systems of evaluation that help consultants figure out where these companies are in their respective markets. They are similar in their methodologies, but they aren’t the same. In fact, the methods in which they are deployed is their main similarity.

 

Competitor analysis is precisely what it says; it is the thorough analysis of your direct competitors. What is achieved by doing this for a large corporation is effectively seeing what works and what doesn’t work with firms that are doing the same things you are. It’s not just an exercise in keeping up with the Joneses, it’s a good business practice that provides companies with valuable information. A good corporate strategy consulting firm knows the information gathered in competitor research is more valuable than gold. Good information is the most valuable asset in business today.

 

Benchmarking will also take into account other companies’ practices, but it is most focused on your company’s internal operations. Specific benchmark consulting firms focus on employees, management, and executives’ business practices. The benchmarking process is designed to be a sustained approach to continual improvement within a company. Corporate analysis is used as more of a “quick fix” method to adjust a company’s practices to be more in line with others in a specific industry. 

 

A benchmarking process can be hard work for a company. However, that hard work will reap tremendous rewards. Benchmarking will ask tough questions of everyone in your company’s hierarchy. From the CEO to the newest hire, you will collaborate to assess your firm’s key activities. Everyone, including executives, managers, and employees will need to be open and collaborative in examining how your company operates. The challenges that benchmark consulting firms lay down for companies are rigorous for a reason. That reason is to make your company the best in its field.

 

A successful benchmarking process will have you aware, sometimes painfully, of how other companies within your industry view you. This is the goal of the corporate research portion of benchmarking, self-awareness. Once your company knows where it stands in your respective industry, your executives might feel a need to make changes to keep up. Or in the best cases, they may realize your firm is setting the bar and other companies are falling behind it. 

Benchmarking will have your company looking at the systems and processes fundamental to the core of your business. A corporate strategy consulting firm versed in benchmarking could have your company going all the way back and questioning something as basic as your business plan. You could be asked to really think about how you nurture not just client relationships, but your internal relationships with staff. There could be questions raised about what your existing services do for your customers but also what your corporate methodology does for your employees and managers.

 

During a benchmarking process, you will look at the present state of your company. The Voice Of The Customer

 

consulting firm may have you look at the past, but you won’t be allowed to dwell on it. The focus is only on the future. More specifically, where you want your company to be in the future. Benchmarking will help you figure out how to improve best business practices, improve your processes and approaches, and ultimately improve customer satisfaction to increase profits and grow. Through the fire of a benchmarking process, your company should have fresh ideas and a new perspective that will bring in more customers and improve operations across the board.