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Reading Room Articles Benchmarking Made Easy By Tami Siewruk I'm certain you've noticed all the talk about "benchmarking for success" over the past couple of years. It's such a sensible approach that I've found myself wondering why it isn't more prevalent in our industry. I've come to realize that the reason is the same as in most situations where change is called for. The biggest implementation obstacle is simply getting started. I'd like to help you become more familiar with the concept, so that you can confidently get started on the right track. How Benchmarking Really Works A benchmark is simply a point of reference. It's a standard against which all future results are judged. A benchmark determines what is "normal" or average. It's a measurement that we carry into our future efforts to determine if we are above or below average. Consider that last night, one of the CNN factorials stated that "The Apartment Industry currently has a 50% turnover of all its' tenants." If 50% is the industry's benchmark, how does your Company or Community stack up? What is your current resident turnover? The answer will give you a starting benchmark (a goal to beat). If you've been with your company or community for several years, and have had the opportunity to observe and measure occupancy and income, then you likely know what is average and can set objectives that either maintain the status quo or call for some level of improvement or increase. Let's say that your average occupancy is 95%. This becomes your benchmark against which objectives for evaluating the effectiveness of all new efforts are set. There are three basic types of benchmarking: 1. Competitive Benchmarking 2. Premiere Benchmarking 3. Internal Benchmarking Competitive Benchmarking compares your community or company's performance against either the best in the multifamily industry or your direct competitors. Premiere Benchmarking involves studying or evaluating the "best of the best" in a specific area of performance. This benchmarking process calls for going outside of our industry to learn new ways of improving "business as usual." Internal Benchmarking is the internal measurement of specific areas of performance over time. This benchmarking process involves study of individual, company, or community-wide efforts. In order to help you decide if you're ready to start benchmarking for success, and to determine what information you may be lacking, here's an Assessment Form to get you started. Benchmark Assessment Organization:_________________ Date:_________  Conducted by:___________________   YES NO SOMETIMES Does your Company / Community have clearly defined key resident service objectives? ___ ___ ___  Does management actively share these key resident service objectives with employees? ___ ___ ___ Does management seek input from employees in forming key resident service objectives? ___ ___ ___ Does your Company / Community measure its resident service objectives as compared to its competitors? ___ ___ ___ Does your Company / Community actively study "premiere" organizations (including those outside of our industry) that exemplify superior customer service? ___ ___ ___ Does your Company / Community measure its internal performance in key resident service areas against previous levels of performance? ___ ___ ___ Are your Company's / Community's benchmarking efforts founded upon objective input from your residents? ___ ___ ___ Do your Company's / Community's employee recognition and compensation plans consider and reward superior or improved resident service? ___ ___ ___ Are employees frequently recognized or rewarded for improved and innovative resident service? ___ ___ ___ Does your Company / Community share the results of benchmark analyses with its employees? ___ ___ ___ Does your Company / Community seek employee input in determining what efforts should be measured? ___ ___ ___ Does Management actively review benchmark trends and seek means of improving on them? ___ ___ ___   Total Boxes Checked: _______+ _______+ _______ Total Assessment Score: =_______ As Chief Imagination Officer of The Sales & Marketing Magic Companies, Tami Siewruk shares more than 20 years of experience in multifamily housing, encompassing leasing, marketing, management, training, authoring, consulting, developing, and Brainstorming! For more information on Tami's newsletter, Sales & Marketing Magic for Apartment Managers; the latest Tools & Forms Catalogue; The Annual Multifamily Housing Brainstorming Sessions™; or to receive Tami's top ideas, FREE, via e-mail, please call 727-784-9469 or visit www.SMMOnline.com.