It is a fairly common practice to compare your operation with others in your industry to check “how you compare with others.” This is a good idea, but it also has some limitations that we all need to keep in mind. Is your business identical in absolutely every respect to the others being used in the Comparison Summary? I doubt it.
With this factor in mind, please feel free to review these comparisons, but then let’s take this process even further. My Business Coach Dan Sullivan stated that “Amateurs compare, but professionals measure.” What does he mean?
May I suggest an even better approach? Look at these industry comparisons, and then go one step further. Look at how you performed in your most recent year compared to the prior three years. From this, you will acquire a more beneficial comparison, because you will be comparing “apples to apples.” This is looking at your business from year to year and will tell you where you are making progress, as well as what areas you probably need to seek improvement on.
You will recall that I’ve suggested that if you measure something, you can better understand it. If you understand the measure, you can then control it, and if you can control a variable, you can improve it. That principle works here, too. If you see some cost in your operation rising (for reasons other than short term supply issues, e.g., with fuel), you can then focus on ways to improve this area, using the year-to-year comparison you have made with your own operation.
Of course, there’s nothing wrong with aspiring to remain competitive with the
Consider looking at your operation vs. others, but don’t overlook the progress you have been achieving within your own operation. That way, you’ll benefit more fully from the comparisons, and if I can assist you in measuring your progress, please let me know.
So, think about this question: Have you been caught in a Comparison Trap?
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