Benchmarking: How does your practice stack up?
Benchmarking is the process of identifying standard or target levels for various performance metrics for the purposes of comparison and development of improvement plans.
The Benchmarking Process
(1) Understand in detail existing business processes
(2) Analyze the business processes of others
(3) Compare own business performance with that of others
(4) Implement the steps necessary to close the performance gap
Benchmarking should not be considered a one-off exercise. To be effective, it must become an ongoing, integral part of an ongoing improvement process with the goal of keeping abreast of ever-improving best practice.
How does your practice stack up?
Before you can answer this question you must ensure you are benchmarking appropriate data based on your unique practice characteristics since no two organizations are exactly alike.
You should develop a sound benchmarking approach and perform the formal review at least annually along with monthly measurement in order to identify new or growing variances to standards along the way.
Do you know how your practice stacks up against similar size practices in your specialty? If so, how do you evaluate and use the information? If not, how do you know where and how much room exists for improvement? You may benefit from a practice management operational and or financial review. Contact us today to discuss a one-time review that will provide a good basis to begin the process of improving both financial performance as well as operational effectiveness.