Benchmarking
The benchmarking process for architectural and engineering firms typically means comparing themselves to others in the industry. And while financial and operational benchmarking can be useful information to have at times, it may not be the best starting point when you’re ready to develop your strategic plan, as explained in the book, Silver Bullets.
Design industry metrics are fairly standard, and in that way leads to what seems to be a simple and logical comparison from one firm to the next. The problem, however, as Silver Bullets explains, is the lack of visibility to how a firm got to that point, and what the trend might be. These unknowns can make the typical benchmarking exercise an illusion, as your firm uses the data as ‘rock-solid certain’ for making some important long-term decisions.
A better approach to benchmarking is to use your own data to begin where you are, and project your own capabilities and needs to move to new levels of achievement based on the entire scope of your strategic planning effort. The next important benchmarking idea, as explained in the book Silver Bullets, is to design your firm’s Business Intelligence System. By using your own operational standards, and by creating metrics and formulas that mean the most to your firm, you’ll be miles ahead in the benchmarking arena.
