I was on a conference call with one of our benchmarking customers. They are an association of very smart engineers who work to integrate systems in very complex manufacturing environments. They had polled their members about expanding our benchmarking metrics for their businesses. The members replied saying before we add more, help me understand the existing metrics for my business. They wanted to spend more time understanding the drivers of their business before they compared themselves to others. They now run a monthly lunch and learn covering the key metrics in short quick sessions.
This was another reminder that successful business owners may not be familiar with financial ratios and metrics. A business owner is usually good at two of the three areas of a business – Marketing/Sales, Operations, or Finance.