Benchmarking is the process of identifying specific reference points for your business to measure performance, efficiency and quality. It can be used in many different ways, though it ultimately comes down to seeing how you stack up against your peers and against your own past performance. It is through benchmarking that practices can also better understand areas for improvement and find ways to offer a wider range of services, as well as improve profitability.

Internal vs. External

Benchmarking comes in two forms: internal and external. Internal benchmarking is the process of comparing the current state of your practice against historical performance. Internal benchmarking can also help create progressive goals towards longer term objectives as you define bottlenecks, unnecessary expenses, etc.

External benchmarking compares your practice against the performance of others in your industry and/or specialty. External benchmarking can offer a window into general competitor performance as a way of seeing how effectively others perform similar tasks. Through external benchmarking, practices can see not only how they stack up, but also where they specifically fall short.

Information is Critical

Information is critical to benchmarking – but what information? And how much of it do you need? Information lacking depth and definition will only yield vague results; too much can overwhelm and confuse analysis. You’ll almost always want to start off on the side of caution and collect as much as possible about the aspects of your practice you think require the most considera
Say the Magic Words
There are moments in life when someone says just a few magic words that become powerful beyond the speaker’s imagination.Perhaps this has happened to you. It has to me – twice.The first magic moment occurred in 1972 when my high school science teacher, Stan Rhodes, challenged his students to see who could build the strongest bridge using just a limited amount of balsa wood and glue.On the day of the contest, a serious problem emerged. I knew the span of the bri
ough benchmarking that practices can also better understand areas for improvement and find ways to offer a wider range of services, as well as improve profitability.

Internal vs. External

Benchmarking comes in two forms: internal and external. Internal benchmarking is the process of comparing the current state of your practice against historical performance. Internal benchmarking can also help create progressive goals towards longer term objectives as you define bottlenecks, unnecessary expenses, etc.

External benchmarking compares your practice against the performance of others in your industry and/or specialty. External benchmarking can offer a window into general competitor performance as a way of seeing how effectively others perform similar tasks. Through external benchmarking, practices can see not only how they stack up, but also where they specifically fall short.

Information is Critical

Information is critical to benchmarking – but what information? And how much of it do you need? Information lacking depth and definition will only yield vague results; too much can overwhelm and confuse analysis. You’ll almost always want to start off on the side of caution and collect as much as possible about the aspects of your practice you think require the most consider
Structuring Your Business
Basic business types include:Sole proprietor: This is the oldest and simplest form of business there is. A single person launches a business that may or may not have employees, a storefront, etc. The advantage of a sole proprietorship is simplicity. All business income and expenses are reported as schedules on your personal income tax. The drawback is that there is no separation between you and the business. If the business owes money or is found liable
of your practice against historical performance. Internal benchmarking can also help create progressive goals towards longer term objectives as you define bottlenecks, unnecessary expenses, etc.

External benchmarking compares your practice against the performance of others in your industry and/or specialty. External benchmarking can offer a window into general competitor performance as a way of seeing how effectively others perform similar tasks. Through external benchmarking, practices can see not only how they stack up, but also where they specifically fall short.

Information is Critical

Information is critical to benchmarking – but what information? And how much of it do you need? Information lacking depth and definition will only yield vague results; too much can overwhelm and confuse analysis. You’ll almost always want to start off on the side of caution and collect as much as possible about the aspects of your practice you think require the most consider
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I was trying to figure out a way to work the Pittsburgh Steelers into a Weekly Insight, particularly after our hometown team earned the right to be called “World Champions.” I realize that not everyone who reads these Weekly Insights hails from Western Pennsylvania (and some of you might not care for the Steelers at all), but hang in there with me on this one. “Steelers mean business” was the title of an Associated Press article on February 4, 2006. Dr. Joanne G. Dujansky, the f
ng can offer a window into general competitor performance as a way of seeing how effectively others perform similar tasks. Through external benchmarking, practices can see not only how they stack up, but also where they specifically fall short.

Information is Critical

Information is critical to benchmarking – but what information? And how much of it do you need? Information lacking depth and definition will only yield vague results; too much can overwhelm and confuse analysis. You’ll almost always want to start off on the side of caution and collect as much as possible about the aspects of your practice you think require the most consider
Networking Success Tip - Develop a Business Networking Plan
You’ve made your choice. You’ve decided to use business networking as a way of "getting" more clients, more referrals and more sales.What are you "getting" yourself into?You’re getting yourself into a process where relationship building comes first and business building follows.Networking is the most effective face-to-face business building tool in existence.Business networking is all about establishing and maintaining relationships that foster trust, fr
ut what information? And how much of it do you need? Information lacking depth and definition will only yield vague results; too much can overwhelm and confuse analysis. You’ll almost always want to start off on the side of caution and collect as much as possible about the aspects of your practice you think require the most consideration. Then, adjust your collection processes as you begin to identify what areas will provide the most benefit. You might even find that you already have more than enough data to analyze certain facets of your practice- for example, if you’ve contracted with a good medical billing company you’ll have a wealth of information on medical claim billing and patient accounting.

To streamline the process of collecting information, remember that internal and external benchmarking are driven by the same data sets. Many practices might start off by contacting trade organizations or specialty associations (i.e. the American Medical Association) for existing benchmark data by region, specialty, practice size, etc. There is, in fact, so much information available from these types of industry groups for just a few hundred dollars that most of the work will already be done for you. Simply take a look at what others are measuring, how they are doing so, how they formulate their results, and work out from there. A few hours setting up a basic spreadsheet will help you maintain clean records and manage effective, albeit simple, comparisons. This will at least get you started and identify target areas where you might need to become more aggressive over time.

An additional thought on purchasing existing data: Industry-wide b