How do you compare your restructuring performance to industry standards?

1 Define your objectives and metrics

Before you can compare your restructuring performance to industry standards, you need to define what you want to achieve and how you will measure it. Depending on the type and scope of your restructuring, your objectives and metrics may vary, but they should be SMART: specific, measurable, achievable, relevant, and time-bound. For example, you may want to reduce costs, increase revenues, enhance customer satisfaction, improve operational efficiency, or resolve debt issues. You should also identify the key performance indicators (KPIs) that reflect your progress and outcomes, such as profitability, market share, productivity, quality, or cash flow.

2 Identify relevant industry standards

Once you have defined your objectives and metrics, you need to identify the relevant industry standards that you can use as a benchmark for your restructuring performance. Industry standards are the norms or expectations that reflect the average or best performance of similar businesses in your sector or market. They can help you assess your strengths and weaknesses, identify gaps and opportunities, and set realistic and ambitious targets. You can find industry standards from various sources, such as industry reports, publications, associations, or databases. You should also consider the size, location, and characteristics of your business and compare it to comparable peers or competitors.

3 Analyze the gaps and trends

After you have identified the relevant industry standards, you need to analyze the gaps and trends between your restructuring performance and the benchmarks. You can use different methods and tools to do this, such as ratio analysis, variance analysis, trend analysis, or benchmarking analysis. The aim is to understand how your business performs relative to the industry standards, what are the main drivers and factors behind the differences, and how your performance changes over time. You should also look for patterns, correlations, or anomalies that can reveal insights or risks.

4 Evaluate your results and actions

The next step is to evaluate your results and actions based on the analysis of the gaps and trends. You should ask yourself some critical questions, such as: Are you meeting or exceeding your objectives and metrics? Are you performing better or worse than the industry standards? What are the reasons for your performance? What are the strengths and weaknesses of your restructuring strategy and execution? What are the opportunities and threats for your business? How can you improve your performance or maintain your competitive edge?

5 Communicate and report your performance

The final step is to communicate and report your performance to your stakeholders, such as shareholders, employees, customers, suppliers, creditors, or regulators. You should use clear and consistent language, formats, and channels to convey your performance data, analysis, and evaluation. You should also highlight your achievements, challenges, and recommendations. Communicating and reporting your performance can help you build trust, credibility, and accountability with your stakeholders, as well as solicit feedback, suggestions, or support for your restructuring efforts.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?