Benchmarking Internal and External CPA Exam BAR

>> YOUR LINK HERE: ___ http://youtube.com/watch?v=JfUQJfr5kB0

In this video, I explain the concept of Benchmarking. • ✅https://farhatlectures.com/ • CPA candidate or student? Start your free trial for more. • Benchmarking is the process of comparing one's business processes and performance metrics to industry bests or best practices from other companies. Dimensions typically measured are quality, time, and cost. In the process of best practice benchmarking, management identifies the best firms in their industry, or in another industry where similar processes exist, and compares the results and processes of those studied (the targets ) to one's own results and processes. • The goal is to discern how well a company performs compared to others and to use that information to improve its own performance. Companies may also use benchmarking to set goals and performance expectations. • Here are the key steps involved in benchmarking: • Identifying problem areas: The company will analyze current performance data to determine where it lags behind its competitors. • Choosing the best companies for comparison: The company will identify the leaders in the areas where it seeks improvement. • Collecting data: The company will gather performance data from competitors for comparison. • Analyzing the collected data: The data is then analyzed to determine the performance gap between the company and its competitors. • Implementing improvements: Based on the insights gained from the analysis, the company will develop strategies to close the performance gap. • Benchmarking can take many forms, such as competitive benchmarking, strategic benchmarking, process benchmarking, and functional benchmarking. It can be a powerful tool to gain a competitive edge, as it allows a company to understand the industry standards and strive to meet or exceed them. • External benchmarking refers to the practice of comparing your business processes and performance metrics to those of other companies outside your own organization. This form of benchmarking provides valuable insights into industry standards, best practices, and innovative strategies that other businesses employ. Here's more on external benchmarking: • Purposes of External Benchmarking: • Performance Comparison: It helps organizations understand how they stack up against others in the industry, often prompting them to strive for improvements to match or surpass competitors. • Strategic Insight: By looking outside their own operations, companies can gain strategic insights that can inform long-term planning and positioning. • Process Improvement: Learning about more efficient or effective processes used by others can lead to significant operational improvements. • Internal benchmarking is the practice of comparing performance metrics and business processes within an organization to identify best practices and improve efficiency. This method involves looking at different departments, teams, units, or territories within the same company rather than looking outward to external companies or industry standards. Here’s a detailed look at internal benchmarking: • Goals of Internal Benchmarking: • Identify Best Practices: To find the most efficient and effective practices within various segments of the organization. • Promote Standardization: To standardize processes across the organization by adopting the best internal practices. • Improve Performance: To leverage internal comparisons to drive organizational change and performance improvement. • How Internal Benchmarking Works: • Data Collection: Gather data on similar processes or performance metrics from different areas within the organization. • Analysis: Compare the collected data to identify which units are performing better and why. • Sharing Information: Share the findings across the organization to understand and implement best practices. • Implementing Changes: Apply the successful strategies or processes identified to areas that need improvement. • Advantages of Internal Benchmarking: • Control Over Data: More control over the comparability and quality of data since it comes from within the same organization. • Easier to Compare: Greater comparability due to similar operational environments across the organization’s units. • Reduced Resistance to Sharing: Lower resistance to sharing sensitive data and best practices as it remains internal. • Cost-Effectiveness: Generally less expensive and time-consuming than external benchmarking.

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