Tag Archives: benchmarks

The Trouble with Benchmarks

“When did it start?” I asked. Gerald stopped to think. A long time employee, recently promoted to Manager, had gone zombie, mentally absent in the role.

“The timing is a little tough. When we promoted him to Manager, we knew there would be a learning curve, so we gave him a little space and the benefit of the doubt. But after four months, my patience is wearing thin.”

“Why have you let it go so long?” I asked.

“Well, we figured it would take a quarter to get up to speed, so we set some benchmarks that he needed to hit by the end of six months. I don’t know if we can wait until then.”

“So, this is management by results?” I pondered.

“Yeah, that’s the way we normally do things. But he’s not even close, and when we do try to pin him down, there is always some excuse about something not being in his control, and that we should wait for the six months we agreed to measure the benchmark.”

“How are you liking your approach?”

What’s the Benchmark?

“So, what do you think?” asked Lenny. “How do you think my team is doing?”

“I don’t know. How do you measure how you are doing?” I replied.

“That’s the thing. We aren’t sure what to measure against. We got some studies of companies that are sort of like us, but the benchmarks they use seem so different. They just don’t make sense.”

“Two things,” I said. “Pick what you think is important. Start measuring now.”

“But, what do we measure against? How do we know if we are doing okay or not?”

“Measure against yourself. So many companies chase each other’s tail around and end up back where they started. Figure out what is important to your customer and measure that. That’s all your customer cares about. What else matters? Measure the second day against the first day. Measure the third day against the second day. Pretty soon, you will see a trend. Before you know it, you will have one year’s worth of data. Start measuring now.”