The traditional view of benchmarking required two separate disciplines focused on performance improvement: measures and methods. Over time, benchmarking has become synonymous with process improvement. Its initial intent was to identify leading companies regardless of industry sector, and apply their best practices to improve one's own company. Benchmarking evolved out of the quality improvement movement in the late 1980s and early 1990s. The term "benchmarking" refers to the comparison of a company's performance results against those of similar peer companies. In addition, we are often asked to conduct a benchmarking analysis that compares one company's claim and loss data against peer companies or to the construction industry as a whole. This type of data analysis is usually the starting point in a performance improvement process - and a common practice among insurance agencies, brokerages, carriers, and risk management consulting firms. In our consulting roles, we frequently help companies establish realistic performance measures by conducting various types of claim and loss analysis. We believe companies must instill management accountability for continuous improvement by linking performance measurement to both prevention activities (leading indicators) and operational results (lagging indicators). The underlying purpose of benchmarking is to continually improve the quality of organizational decision-making.Īs construction risk management consultants, we help contractors prevent accidents, mitigate claims, and reduce the total cost of risk through a continuous improvement process. Data-driven analysis is a critical decision-making tool for Construction Financial Managers and other industry leaders.ĭecision-making is arguably the most important responsibility of company leadership.Ĭompanies that make better decisions make fewer mistakes, and achieve a distinct competitive advantage in the marketplace.
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