How to take your ego out of the business? Tricky at the best of times. For me, benchmarks are one of the most reliable ways to judge my true abilities against someone else’s.

You see this in sports all the time.

Maybe you have a friend that thinks they are pretty handy on the golf course. And maybe they are. Compared against those they know they can beat, of course.

But what happens when someone new joins the club?

Ever notice the way these loudmouths slink away and make their excuses. Suddenly the bravado is gone.

They adopt a ‘wait and see’ policy.

If the guy (or girl?) is really good, they’ll steer clear. If they know they have a chance, they’ll come bouncing back. You know the type, I’m sure.

This is fine on the golf course.

But, in business, you don’t have the same luxury. The pressure is on. You need to gauge how successful your product, service, or customer satisfaction is and adjust accordingly.

You can’t afford a ‘wait and see’ policy. Time lost is money lost.

Ten Step Benchmarking Model

One way to address this is to use a set of benchmarks. I use benchmarks in different ways to judge my performance and also how my products are selling. I sell digital products on the web and look for ways to judge my performance (not only sales) against my competitors.

Why? Benchmarks help me see things with greater clarity.

Instead of leading with my heart, which most small business owners do, the benchmarks allow me to assess things objectively.

It takes me out of the picture.

Here are ten steps to benchmarking your business.

Plan

1.  Identify the benchmark target - highlight the product, service or activity you want to improve. Start with one benchmark and learn from this. Don’t complicate things by defining multiple benchmarks at once.

2. Identify benchmark partners - look at competitors you want to compare yourself against, for example, similar size SMEs or startups with a similar market presence. Be realistic.

3. Collect data using a combination of web tools and excel spreadsheets. Google provides some excellent tools for monitoring firms and brands. You can compliment this by developing surveys, questionnaires, and focus groups to glean more information.

Analyze

4. Determine the gap – look at the market research findings, clean the data, and look at the difference in performance, sales, or customer satisfaction  between you and the benchmark you’re working against.

5. Project future performance – set a target of what you want to achieve and timeframes for getting there. Again, be realistic and allow some leeway if this is the first time you’ve benchmarked your products.

Integrate

6.  Share results – one way to keep the team motivated (and in unison) is to share this information. This also helps set the standard and show the team what’s expected of them from here on.

7.  Establish goals for each person - be specific about each person’s targets. The more you refine the targets, the greater the chance of them reaching their goals.
Action

8.  Develop Action Plans – armed with the information from the market research, develop an Action Plan that works with the goals and timelines you’ve established for your team. Use the Action Plan to clarify to each member of the team what’s expected of them and the critical success factors associated with these targets.

9.  Implement plans and monitor results – hold a workshop or team meeting and kick off the project. Assign a project manager to lead the activity and agree on how status reports should be delivered. Reduce misunderstandings by sharing examples of status reports, action plans and other deliverables. Monitor the results as per the action plan.

10.  Recalibrate benchmarks - look at the feedback and tweak the benchmarks where necessary. Don’t change things just to keep your team on their toes. Instead, encourage them on their work to progress and show how their contributions help the company move forward. Celebrate major milestones to boast morale.

Do benchmarks work?

I’ve used benchmarks in companies for different reasons.

Sometimes we’ve wanted to see how our customer service compared with another firm.That makes sense.

Other times it was to take people’s ego out of the equation. Benchmarks are neutral. They don’t take sides.

If your department or project is struggling and you can’t get a handle on where to move next, let’s say you can’t reduce the number of customer complaints:

• Work with the team to setup benchmarks.
• Show them that you have nothing personal against under-performing team members. These are the industry averages and we need to get there.
• Then examine why we (we’re all in this together right?) have not hit this target yet.
• Build consensus. Show that this is the best way forward. Take other suggestions but be careful with those who are trying to undermine you.
• Create a Project Plan, assign tasks, and deadlines.
• Create an Action Plan and walk each person through what’s expected of them.

Revise, revise and repeat.

That’s one way to do it.

How can we improve upon this?

Pic credit:°Florian

Zachary M. Seward http://www.niemanlab.org writes that The Huffington Post applies A/B testing to some of its headlines. Readers are randomly shown one of two headlines for the same story. After five minutes, which is enough time for such a high-traffic site, the version with the most clicks becomes the wood that everyone sees.

Put the Author’s name above a headline to get more clicks

Paul Berry, Chief Technology Officer at The Huffington Post, said Huffington Post editors have found that “placing the author’s name above a headline almost always leads to more clicks than omitting it.”

Also, The Huffington Post’s new social media editor, Josh Young, has also been soliciting better headlines from readers on Twitter. Interesting use of Crowd-sourcing?

Takeaway

The Huffington Post is considering separate East Coast and West Coast editions.

Why?

Take the Oscars, It’s old news to East Coast readers by noon, but fresh for the West Coasters logging on.

Read more here: http://www.niemanlab.org/2009/10/how-the-huffington-post-uses-real-time-testing-to-write-better-headlines/

Will real-time rating lead to “better” headlines or more popular ones?

Charlene Li and her colleagues at Forrester Research report that companies often approach Social Computing as a list of technologies to be deployed as needed — ie a random assortment of blogs, communities etc— to achieve a marketing goal. Ms Li argues that “a more coherent approach is to start with your target audience and determine what kind of relationship you want to build with them, based on what they are ready for.”

You can use the tool here to get started. www.forrester.com/Groundswell

Features of this profile:

• For an explanation of these groups (Creators, Critics, etc.), see a presentation (8 slides)

• Bars indicate the percentage of the selected demographic that are in each Social Technographics group.

• The white marks indicate the same percentages for the whole population of the country selected.

• The index indicates how the demographic compares to the population — a score of 100 means the demographic is the same as the population average.

• The message “No data available” appears when you request a profile for which our survey samples are not large enough to provide a reliable answer. This occurs for age groups in Japan, Metro China, and South Korea. To see profiles in these countries, set the Age to “Not specified”.

Some really terrific material over here including free case studies, PDF downloads and extracts from the book.

If you’ve read it, please let me know what you think.

Regards,

Ivan

and you can Twitter me @ivanwalsh

Note: Any use of data and charts generated from this site must include the following citation: Data from Forrester Research Technographics® surveys, 2008. For further details on the Social Technographics profile, see groundswell.forrester.com.

Charlene Li and her colleagues at Forrester Research report that companies often approach Social Computing as a list of technologies to be deployed as needed — ie a random assortment of blogs, communities etc— to achieve a marketing goal. Ms Li argues that “a more coherent approach is to start with your target audience and determine what kind of relationship you want to build with them, based on what they are ready for.”

You can use the tool here to get started. www.forrester.com/Groundswell

Features of this profile:

• For an explanation of these groups (Creators, Critics, etc.), see a presentation (8 slides)

• Bars indicate the percentage of the selected demographic that are in each Social Technographics group.

• The white marks indicate the same percentages for the whole population of the country selected.

• The index indicates how the demographic compares to the population — a score of 100 means the demographic is the same as the population average.

• The message “No data available” appears when you request a profile for which our survey samples are not large enough to provide a reliable answer. This occurs for age groups in Japan, Metro China, and South Korea. To see profiles in these countries, set the Age to “Not specified”.

Some really terrific material over here including free case studies, PDF downloads and extracts from the book.

If you’ve read it, please let me know what you think.

Regards,

Ivan

and you can Twitter me @ivanwalsh

Note: Any use of data and charts generated from this site must include the following citation: Data from Forrester Research Technographics® surveys, 2008. For further details on the Social Technographics profile, see groundswell.forrester.com.

I’ve been reading this book most of the weekend. It’s a terrific exploration of social media and how social media technologies are effecting corporations and companies from a business perspective. I thought you might want look at these links as these are the footnotes to the book and provide some very interesting material. Worth a look if you’re trying to get a handle on how twitter, facebook and the rest will impact your profit margin.

A groundswell is rising among your customers. Are you ready?

Download: Groundswell: Winning in a World Transformed by Social Technologies

This bestseller has really struck a chord in the web industry. So, what is this groundswell?

“Customers are writing about your products on blogs and recutting your commercials on YouTube. They’re defining you on Wikipedia and ganging up on you in social networking sites like Facebook. These are all elements of a social phenomenon — the groundswell — that has created a permanent, long-lasting shift in the way the world works. Most companies see it as a threat. You can see it as an opportunity.” In Groundswell, two of Forrester Research’s top analysts, Josh Bernoff and Charlene Li, show you how to turn the force of customers connecting to your own advantage.

They show how companies are:

1. Gaining insights
2. Generating revenues
3. Saving money
4. Energizing their own customers.

Groundswell is based on consumer data and experience with companies, from Procter & Gamble to Ernst & Young to a tiny but wildly successful winery in South Africa.

Audio interviews

If your hoping to learn how to take advantage of communities, blogs, wikis, Facebook, or YouTube, then look at the case studies. The list is just huge.

Download: Groundswell: Winning in a World Transformed by Social Technologies

Recommendations

They are all lining up to give it praise. Here is a sample.

This is recommended reading for people in any kind of web marketing role.”
How To Change The World, by Guy Kawasaki

“Li explains why companies might want to hire some good bloggers, why sending in the flaks and lawyers isn’t such a good tactic anymore (are you listening, Barbra Streisand?), and why at the end of the day companies should think people, not technology.”

Charlene Li on Flaming Laptops, Sleeping Technicians, and the Streisand Effect, Fast Company

Download: Groundswell: Winning in a World Transformed by Social Technologies

“(The book) is a dissection of online culture as it is a how-to manual for executives and mid-level managers trying to navigate this fast-changing and often confusing environment.” Financial Times

“The biggest mistake,” (Charlene Li) says, “is thinking that (social computing) is a fad, that companies can ignore it, that they don’t need to engage, that it’s for ‘those people over there’ — those wacky companies for young people.”

“For anyone interested in social media’s impact on business, Groundswell is a great read.” ReadWriteWeb

“if social technology hasn’t rocked it already. It’s a tsunami of unstoppable force. Amazon, Procter & Gamble, Facebook, Google, and Dell are profiting from the crest of the wave. Are you? Li and Bernoff are the apostles of the tsunami. This book will be your bible.”
Scott Cook, Founder, Intuit

“Groundswell provides practical advice on how to stay nimble and flexible in an ever-morphing digital world. Enabling your company to respond to change quickly — especially when talking to and supporting your consumers — is essential for business success.”
Cathie Black, President, Hearst Magazines

“The first phase of the Internet was about getting everyone connected. In this next phase, which changes the way we work, live, play, and learn, we’re starting to realize the value of those connections as well as the new communications and experiences those interactions lead to — the ‘human network.’ Groundswell effectively documents this shift and underscores the opportunities available to all from this major market transition.”
John T. Chambers, CEO, Cisco

“Li and Bernoff have written an insightful book that takes a refreshing research-driven approach to helping businesses transform themselves and successfully navigate this new dynamic landscape.”
Steve Rubel, Senior Vice President, Edelman Digital, and columnist for Advertising Age

“Internet-style communication tools change organizational communication completely, providing a means for workers to run organizations more effectively. Groundswell describes how this can happen in any organization, focusing on the human issues, which is the hard part.”
Craig Newmark, Founder, craigslist.org

Ten Things You’ll Only Find In Groundswell

1. Rock-solid credibility. Groundswell is based on facts and experience from analysts who have advised more than 100 business clients on social technology strategy.

2. Breadth. Groundswell includes chapters for managers and executives in research, marketing, sales, support, and development.

3. Case studies and examples. Groundswell cites 65 corporate examples including 25 full case studies in a variety of industries and countries around the world.

4. Data. Groundswell features data from Forrester research consumer surveys in the US, six Asian countries, and seven European countries.

5. Web resources. Groundswell’s Web site includes links to sites in the book and notes.

6. Visionary advice. The book includes strategic and tactical advice in every chapter. The last three chapters boldly describe how the Groundswell will transform your company and your future.

7. Focus on ROI. Every case in the book focuses on the specific business return from social strategy, including three ROI calculation templates.

8. Great writing. Groundswell is written in a personal, engaging style that makes it very easy to read. It tastes good, and it’s good for you, too.

9. Prominent authors. Charlene Li, Josh Bernoff, and Forrester Research are the acknowledged social technology experts, quoted in national media more than any other source on this growing trend.

10. Groundswell’s discussion forum connects you to other social technology strategists throughout the world.

Groundswell: Winning in a World Transformed by Social Technologies

Table of Contents

PART I: UNDERSTANDING THE GROUNDSWELL

Chapter 1. Why the groundswell – and why now?
The groundswell as a social trend
CASE: Digg.com co-opted by its members
Threats from the groundswell
CASE: GM starts the FastLane blog
Chapter 2. Jujitsu and the technologies of the groundswell

Concentrating on the trend, not the technologies
Jujitsu: turn the groundswell to your advantage
Description of all social technologies with data on usage around the world
Chapter 3. The Social Technographics® Profile

Defines a data tool for analyzing social behavior of any group of customers
CASE: A community for alpha moms
Data and analysis for six examples: Gen Y, Japan/PC, politics, retail, seniors, health care

PART II. TAPPING THE GROUNDSWELL

Chapter 4: Strategies for tapping the groundswell

The POST method: people, objectives, strategy, technologies
The five objectives: listening, talking, energizing, supporting, embracing
Chapter 5: Listening to the groundswell

Market research vs. groundswell insights
CASE: Memorial Sloan-Kettering Cancer Center listens to cancer patients in a private community
CASE: MINI USA uses brand monitoring, then markets to owners
Chapter 6: Talking with the groundswell

Marketing is shouting; talking is a conversation
CASE: Blendtec’s viral video
CASE: Ernst & Young recruits with Facebook
CASE: HP blogs tame marketing complexity
BOX: ROI of blogging
CASE: Procter & Gamble reaches out to young girls with beinggirl.com
Chapter 7: Energizing the groundswell

Helping your customers sell each other
CASE: eBags creates luggage evangelists with ratings and reviews
BOX: ROI of ratings and reviews
CASE: Constant Contact drives referrals
CASE: LEGO’s brand ambassador program
Chapter 8: Helping the groundswell support itself

People supporting each other to cut costs
CASE: Dell saves with a support forum
BOX: ROI of support forums
CASE: BearingPoint MIKE2.0 wiki
Chapter 9: Embracing the groundswell
Your customers can help you design products
CASE: Del Monte product insights from dog owner community
CASE: salesforce.com’s Idea Exchange
CASE: Crédit Mutuel asks its customers for ideas
CASE: Loblaw asks for feedback, continuously improves its grocery products

PART III: THE GROUNDSWELL TRANSFORMS

Chapter 10: How connecting with the groundswell transforms your company
Transformation builds, step-by-step over a period of years
CASE: Unilever’s Dove transforms its marketing
CASE: Dell puts customers in every process
Chapter 11: The groundswell within your company

Tapping into groundswell power with employees
CASE: Best Buy’s Blue Shirt Nation
CASE: AARF uses a wiki to boost efficiency
CASE: Bell Canada’s internal idea community
Chapter 12: The future of the groundswell

CASE: Stormhoek winery lives and markets in the groundswell
A working day in the future, transformed
Principles for groundswell thinkers

Case studies and examples

Some of the case studies in the book include:

GM, MINI USA, UPS, Network Solutions, Unica, Constant Contact, Salesforce.com, Ernst & Young, Unilever, Procter & Gamble, Del Monte Foods, Sony, Motorola, TiVo, Charles Schwab, BearingPoint, Digg, New Line Cinema, PodTech.net, Yahoo!, NEC/Fujitsu, Hewlett-Packard, Dell, Intel, eBay.

Download: Groundswell: Winning in a World Transformed by Social Technologies