Benchmarking - Why Timing is Important
The following article was originally featured in the Farm Futures.com blog publication on January 6, 2015.
When considering benchmark data, the three important items to consider are applicability, accuracy, and timeliness. The Benchmarking Part 2 article discussed accuracy. Now let's explore the importance of timeliness of benchmarking data.
The use of old data must be avoided – both internal data and external industry data. The pace of business is ever-changing and constant shifts in the marketplace demand timely analysis. While it may seem harmless to use external industry benchmark data from two to three years ago, doing so in a changing business landscape may result in flawed, misleading, and an ineffective conclusion.
Operating an Average Farm Business
This article was originally published for FarmFutures.com on December 17, 2014.
One of the more difficult elements in benchmarking the financial performance of your farm business is how to acquire accurate industry information to use in your analysis. Benchmarking can sometimes mean the average statistic (as in the letter grade "C" in school) or the absolute highest, best-in-class statistic (as in the highest grade in the class).
How Do You Rate? Benchmarking Part One
The following article was originally featured in the Farm Futures.com blog publication on December 12, 2014.
Benchmark, Yardstick, Standard, Target, Scale, Rank.
Whichever word you want to use, there is value in knowing how you stack up and rate in comparison to yourself and industry peers. Benchmarks are typically used to help you understand and improve your operational efficiency and financial performance.