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Competitive Benchmarking

You can’t set a target you haven’t measured against. I benchmark against competitors and best-in-class to ground strategy in the real bar — not an aspirational one.

The Workflow — How I Approach It

1

Define what to benchmark

Pick the metrics that matter to the decision — not everything that’s measurable.

2

Select comparators

Direct competitors, adjacent players, and best-in-class — three different bars.

3

Collect comparable data

Use the same definitions and periods for everyone being compared.

4

Normalize before you compare

Adjust for size, mix, and market — otherwise the comparison lies.

5

Analyze the gap

Explain the gap — is it strategy, structure, or just scale?

6

Set targets and actions

Convert the insight into a target the organization can actually pursue.

My Operating View — The 2 Cents

Benchmarking fails on comparability. My 2 cents: normalize before you compare — a different cost base, mix, or market will mislead you into the wrong target. The gap is only useful if it’s an apples-to-apples gap.

What Worked & What Didn’t

What Worked

  • Targets grounded in a real, normalized bar — credible to leadership.
  • Gap analysis that explained the why, not just the gap.

What Didn’t

  • Comparing non-comparable data — a beautiful chart, a false conclusion.
  • Benchmarking without action — insight filed, target unchanged.