Some time ago, I was in the cockpit of a single-engine aircraft during a check flight with an instructor. We were flying over the empty Nevada desert on a moonless night and, with no lights from highways or cities below us, there were no visual references to gauge our distance from the rough terrain.
I asked the instructor about the procedures for dealing with an engine failure in conditions where we could not see the ground. He calmly explained to me how to trim the aircraft for maximum lift and how, at 500 feet, we were to turn on our landing lights. He then added, “And, if we don’t like what we see, we turn the lights back off.” It was hardly comforting, but he was telling me that, at such a late point in our flight, it really didn’t matter what we saw in front of us because it was too late to alter the outcome.
I’ve often reflected on this lesson, particularly as it pertains to navigating the world of business ownership. It is quite unnerving to “fly blind” as an entrepreneur where you are often flying solo – and without a parachute – and it often comes down to one of two things: you either soar or crash and burn. Having clear points of reference to constantly gauge how well one is performing and whether or not one is approaching danger is of crucial importance in running a business.
The value of benchmarking lies not only in the opportunity to compare our positions relative to others, but also in the guidance it gives us in knowing what “gauges” we should pay attention to in the first place. A properly-designed benchmarking program calls out the key performance parameters that, when monitored and acted upon, give us information that can improve our rate of success…or avoid potential dangers.
This is one of the primary advantages of associating with others engaged in the same business that we are pursuing. If we glance at a benchmarking study and fail to see the value in gauging a particular criterion, we should first ask ourselves: “Why have my peers identified this as an important measure of success? Have they learned a principle of performance that I have been missing?”
Your participation in the Tire Review benchmarking study is a good start to improving the performance of your business. Further involvement within industry councils, advisory groups, or through aligning yourself with other independent tire dealers through a franchise or coop organization can increase the value of benchmarking by giving you access to the answers to the question that should accompany any benchmarking gauge: “And so now what do I do about it?”