Feedback loops are seen everywhere, from biological systems where they are used to achieve a stable environment to sports where performance is measured and used to make enhancements. No matter the application, the process is simple: production occurs, measurements are taken and the information is used to make improvements.
The surprising thing is that despite how prevalent the feedback loop process is, not all businesses take advantage of it in its entirety. Customer satisfaction, staff retention, production times are all areas that can be constantly improved via feedback loops if proper measurements are taken.
Perhaps one area in which feedback loops are particularly useful is in tracking the financial key performance indicators of a company and using that information to inform where changes need to be made. Once the changes are put into effect, further measurements are taken and the process continues. To get the most out of this process the feedback loop measurements themselves need to be:
- specific to the goals of the business,
- able to be compared to the performance of similar businesses, and
- actionable with clear direction on changes that need to be put into effect.
As part of a financial benchmarking service, businesses are able to input their information and have it analysed and compared against their peers. The Feedback Tool offered by Benchmarking.com.au for example, then completes this loop with clear and actionable strategies which are specific to what is driving success in a particular industry.
To stay competitive, thrive and grow all businesses would benefit greatly from engaging with feedback loops, and with tools such as those offered by Benchmarking.com.au it has never been easier to do.
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