Successful athletes know what they need to do to be their best. They watch game footage showing opposing teams, monitor long-standing and recently broken sports records, and always understand how their performance compares to others. They believe in benchmarking, and so should you.
Benchmarking can keep your business in top form by maintaining a focus on industry best practices. By comparing your organization with your peers, you can determine what your company has to do to achieve the sharpest competitive edge.
One valuable benchmarking tool is offered by the Construction Financial Management Association (CFMA). The CFMA Financial Benchmarker Report provides a detailed analysis of key construction financial and operating data. Industry-specific compensation information, multi-year trends such as profitability and efficiency ratios, and other useful financial benchmarks are just a few things included in the report.
The Benchmarker Report is based on a confidential survey conducted each year. If you’re interested in getting a realistic view of your construction company’s performance, the 2016 survey is currently available for completion until June 7, 2016. The questionnaire takes about 30 minutes—not much time considering what you get in return. As a survey respondent, you’ll receive:
- The final 2016 Financial Benchmarker Report: This executive summary provides a quick overview of the survey’s results.
- A personalized My Company Performance Report: This is a great way to see exactly how your company stacks up to “best in class” construction firms as well as other contractors participating in the survey.
- Two free peer group comparison reports. Want to know how your company compares to specific peer groups—companies with similar revenue, in a specific state, or more. These reports will give you the side-by-side comparison you need.
Log in or register on the CFMA Financial Benchmarker site to participate in the survey. All the data you submit is kept confidential and only aggregate data is disclosed on the CFMA website.
Want more benchmarking data? CFMA Benchmarker tool information is also available year-round based on a subscription fee or a pay-by-report basis.
Business is good these days, which can sometimes give a false sense of success. Benchmarking makes sure you are identifying the business improvement opportunities that will keep your competitive edge from growing dull.
For more information related to benchmarking, read my previous blog post “Peer review provides unique construction business perspective.”
About the Author
Deb Carpenter-Beck is a writer and marketer with more than 25 years of experience in the construction and real estate industries. She often writes about technology and best practices and is passionate about helping contractors and real estate professionals achieve their business goals. You can follow her on Twitter @DebCBConstruct.