Benchmarking Benchmarking helps to identify performance gaps and identify where improvement is needed. "Benchmarking is used by large health systems and smaller practices alike as a tool to identify targets and set goals enabling staff to compare the operation's service, process, and outcomes with those already attaining "best practice" goals" (Borglum, 2008)
There are many benchmarking techniques; for the purpose of this paper three will be discussed, financial, performance, and operational. "Financial benchmarking is performing a financial analysis and comparing the results in an effort to assess your overall competitiveness and productivity" (Cimasi, 2006)
It is used to determine the best ways a firm can increase their efficiency and accuracy by controlling internal costs. (Azhar, 2008) The reason why this choice was selected is because it is forcing a corporation to reduce waste
Some specific approaches that could be used in achieving these objectives include: expense, revenue and profit budgets. ("Operating Budgets," 2005) (Burrow, 2009) An expense budget is when there is a focus on all of the costs over a select period of time
Together, these elements will provide insights as to the best approaches for controlling the budget. (Kimmel, 2009) Determine specific strategies to manage budgets within forecasts