Business experts have a number of tools at hand to analyze company performance. Here are six frameworks that consultants and business analysts use, and that you might consider adding to your own set of tools.
Benchmarking is the process of comparing your company metrics to the metrics of your industry competitors or to those of innovative companies outside the industry.
The balanced scorecard is a framework for tracking important aspects of company strategy and for facilitating organizational improvement or change. It measures metrics beyond typical financial metrics to help companies keep long-term strategic goals in focus and spot trouble before it appears in the financial statements. Check out commercial painting houston.
The scorecard is a comprehensive and quantitative set of objectives that can be measured over time.
PORTER’S FIVE FORCES
Developed by Michael E. Porter, Bishop William Lawrence University Professor at Harvard Business School, Porter’s five forces is a framework for industry analysis that is used as an input to a strategic plan.
The five competitive forces that influence profitability in any industry are outlined in Porter’s model
THE GE-MCKINSEY NINE-BOX MATRIX
This matrix was developed by McKinsey & Company in the 1970s to help General Electric prioritize its investments in its numerous business units. It’s widely used to help companies assess the relative merits of various opportunities.
Business units or opportunities are categorized as “high,” “medium,” or “low” within the two axes of the matrix, which are “industry attractiveness” and “competitive strength of the business unit.”