The best business decisions aren't made in a vacuum. In order to break from the pack, you have to know where you stand relative to your peers and competitors. Benchmarking, or comparing a company's operational and financial performance metrics against businesses considered industry leaders or best-in-class, is one of the best ways to identify factors and processes that can lead to superior performance.
Advances in information technology are making it much easier to facilitate the dissemination of best practices, pushing benchmarking forward with rapid momentum. This can be a tremendous boon to small- and medium-size companies looking to get to the next level. In fact, for many companies on the fast track, benchmarking has become an integral part of achieving exponential growth.
But how do you access and compile the reams of data necessary for effective decision making? While the information may be publicly available (although not always), it is likely to be widely dispersed and time-consuming to gather. To facilitate the efficient analysis of a broad universe of performance data, Bank of America has developed a tool called PeerProfilerTM.