Omnichannel Benchmarking: a new era of HCP engagement

If you have a fund—or more than one—in your portfolio, you can compare the information fund managers already provide to see how your funds are doing compared to the indexes they mirror. Mercy Harper is a former writer who contributed to and published research on best practices for APQC’s research team. If you already belong to one of those groups, simply Log in below to access this content. Sign up to receive our newsletter with insights and thought leadership to achieve peak performance. To stay one step ahead of your competition, sign up today to our exclusive newsletters to receive exciting insights and vital know-how that you can apply today to drastically accelerate your performance. Furthermore, significant skill shortages in accounting are keeping wages higher, further increasing the importance of maximizing workforce efficiency and productivity.

Benchmarking the maturity of your accounting analytics and reporting capabilities will, therefore, become increasingly important in improving efficiency. To do this, internally assess how data-driven your accounting processes are and compare to industry competitors. By comparison, top-quartile leaders in accounting efficiency were spending only 0.55% of their annual revenue on finance, or $5.5 million per $1 billion in revenue. With that theoretical $3 million in savings, a business could invest in other areas and drive significant growth—but that money is already spent due to inefficiencies in accounting practices. Matt has been working in the healthcare business intelligence industry for over 20 years, starting out in quantitative market research. With a background in economics, Matthew has a particular interest in the statistical analysis of data, behavioural economics and finding practical applications for artificial intelligence in analytics.

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Just making the comparisons, raised questions and kick started the performance improvement process. The answer lies in the nature of the client’s diverse business operation, which requires resources to be retained in country, with most of these retained positions being higher cost than the transactional roles being centralized. This is a good example of how benchmark data can provide insights, but not necessarily all of the answers, and why further analysis is required.

The main balance sheet KPI for accounting practices and a fundamental driver of practice profitability is the number of lock-up days, that is, the number of days when cash is tied up, either due to work in progress or debtors. The object is to optimize ROCE, by maximizing productivity and recoverability while minimizing lock-up. CSL specialises in business intelligence and data management solutions for the healthcare sector. This includes Machine learning, Data warehousing, Sales performance management & Patient outcome analysis.

General Accounting and Reporting Key Benchmarks: Automotive Industry

Through best-in-class practice reporting, you can quickly extract information on your financial health or practice performance and present it visually through intelligent KPI dashboards rather than having to collate and format this data. My Accounting Course  is a world-class educational resource developed by experts to simplify accounting, finance, & investment analysis topics, so students and professionals can learn and propel their careers. External benchmarking compares metrics and/or practices of one organization to one or many others.

• The Dow Jones Industrial Average comprises 30 U.S. blue-chip stocks—the stocks of well-recognized, established, and financially sound companies.
• Traditional “Efficiency” metrics focus on the number of FTE’s (“full time equivalents”) performing various tasks, comparing organizations based on their industry and revenue size.
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• Start with processes that are easy to benchmark to get some quick wins under your belt, but once you have done this, benchmark your core processes.
• Investors use benchmarks to measure the performance of securities, mutual funds, exchange-traded funds, portfolios, or other investment instruments.

He believes in getting involved with the industry, and chairs the BHBIA’s Ethics and Compliance Committee as well as a forum for senior pharmaceutical analytics executives. What is clear is that both high-quality data and knowledge are invaluable assets for companies as they navigate the changing engagement environment. Benchmarking can play an important role here, giving companies a contextualised view of marketing performance against leading players in the industry.

Examples of Benchmarking

In this blog, I will provide more insights into which benchmarks are good indicators of opportunity, and how to “read between the lines” to understand what may be impacting the current performance. When choosing benchmarking criteria for your SME, you should consider aspects or dimensions that are relevant, measurable, and achievable. These should reflect your strategic priorities https://online-accounting.net/ and goals, such as financial ratios, operational metrics, customer metrics, and innovation metrics. To determine the criteria, you can use various sources of information such as your SME’s financial statements and reports, mission and vision statements, SWOT analysis or balanced scorecard, customer feedback, industry benchmarks and trends, and competitors’ data.

• However, when compared to the Dow Jones U.S. Total Stock Market Index, MGK has returned less and has slightly more risk.
• Benchmarking can help you identify gaps and opportunities, learn from best practices, and adapt to changing customer needs and market conditions.
• To determine the criteria, you can use various sources of information such as your SME’s financial statements and reports, mission and vision statements, SWOT analysis or balanced scorecard, customer feedback, industry benchmarks and trends, and competitors’ data.
• Essentially, benchmarking helps companies to put their marketing performance into context, providing a clear understanding of how effective their strategies are performing in comparison to their competitors.

KPIs, at the level of firm, department, and individual, will engender goal congruence. To ensure all team members pull together, everyone needs to understand the department and firm goals, how each person fits into those goals, and what will happen if individuals achieve, or fail to achieve, their goals. As an accountant, you recognize that what gets measured gets managed and this is what benchmarking is about. As you can see from this example, the use of benchmarking data analysis can provide real insights into the opportunities that are available for cost and productivity improvements within an organization.

Finance Organization Key Benchmarks

Performance benchmarking is usually the first step organizations take to identify performance gaps. Benchmarks are used in accounting and financial analysis to make comparisons between different companies and industry norms. This process, called benchmarking, is commonly used to assess company performance. While there are hundreds of benchmarks in use, understanding some of the most common benchmarking metrics can help you determine if this method of performance measurement is right for your business. Once you have chosen your benchmarking criteria, you need to collect and analyze the data that will allow you to compare your SME with your competitors.

With nearly 30 years of experience working with big names on Wall Street to healthcare and insurance, Paul has unique insights into the areas of cloud, security, platform, and compliance systems. He advises clients to benefit from growing digitalization by conducting digital benchmarking and leveraging the cloud. His key specialization includes engineering issues, operational security, and compliance controls.

However, it is possible to do so—but in many cases, it is simply too expensive and time-consuming to evaluate stocks and purchase the ones that meet your investing criteria. So, many choose mutual funds or exchange-traded funds (ETFs) that mirror the performance of specific indexes. When evaluating your investment portfolio’s performance, it’s important to compare it against a benchmark representing the industry, sector, and market segment to which it belongs. However, if your portfolio is diversified, you may not be able to compare cash flows the total portfolio against one index—you may need to evaluate it in sections based on how you’ve allocated your investments. Fixed income indexes measure the performance of fixed income assets like bonds and treasuries, which investors use for generating income or as a way to preserve capital during falling market conditions. Market benchmarks are indexes created to include multiple securities, assets, or other instruments to represent the performance of a stock, fund, or any other investment of the same type and composition.

Typically, we have seen process automation (e.g. RPA) deliver strong ROI’s, with a payback period of 12 months of less. But if your organization is not large enough to provide a comparable ROI, consider whether cost and effort are worth it. You will certainly gain more scalability, but the short-term financial benefits may not be there. Traditional “Efficiency” metrics focus on the number of FTE’s (“full time equivalents”) performing various tasks, comparing organizations based on their industry and revenue size.