Benchmarking is defined as a means of assessing your performance by comparing your metrics to those of other high-performing companies. This process was first used in the late 1990s; it’s gained popularity and evolved since then.
While some organizations don’t benchmark their processes, the improvement it can yield in terms of time and money savings may be well worth it. IOFM offers some tips for getting started.
NOW AVAILABLE: 2022 Benchmarking Reports
Each year, IOFM releases benchmarking reports as a benefit to our Members. The first two out of three reports, The Benefits of Benchmarking and Accounts Payable Processes, are available to download. The third report, Accounts Payable Performance, launches on November 11, 2022. Collectively, the three reports reveal AP trends and represent a starting point for your process improvement journey.
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Planning Positive Change
Benchmarking paves the way to process improvement, but just thinking about AP performance metrics can send some folks around the bend. A seasoned pro explains the benefits of benchmarking and how the process can actually make their jobs more interesting.
Gaining Staff Buy-In
An important consideration if you’re looking to benchmark is making sure your team is on board. One AP manager actively engaged his team at the very beginning to work through what metrics to measure. They then collaborated to successfully improve performance.
Traditional benchmarking has a reputation for being a difficult and lengthy process — but it doesn’t need to be. Online data collection has made it far simpler. Staying focused on realistic goals and prioritizing your efforts will also yield better and faster results.
FREE WEBINAR: Benchmarking Basics
While benchmarking is a tried-and-true method for process improvement, many organizations feel they don’t have the time or expertise to take it on. Join IOFM Managing Editor Royce Grayson Morse for this free webinar, where she will discuss the principles of benchmarking and how to get some real benefits from it — without having to make it a full-time job.
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