To determine the performance of your AP team, it’s crucial to compare how you perform both internally and externally. This will give you the scope to see how you perform from one year to the next as well as how you compare with other organisations. Once you have obtained the data and analysis, you can then identify areas where improvements can be made.
Compare Previous Years
In order to identify how you compare year-on-year, you will need to take a look at historical data and then run a comparison. Using metrics from across the department, you’ll have the scope to see whether you are performing or underperforming. Furthermore, if you delve into monthly comparisons, it will provide insight that enables you to see what times of year the AP department is stretched and under pressure and those times of year when things are slightly quieter.
Furthermore, if you have the ability to compare with other AP departments from other divisions within the company or group then this will enable you to see how you perform and match up with other AP teams.
Compare With Other Organisations and Benchmark
Benchmarking is critical and it will provide you with tangible data that will enable you to determine how your AP team is performing. To do this, you will need to measure against external organisations that are positioned in the same industry, are the same size and located in the same country or area.
Using this approach, you will be able to identify areas where things could be improved but you will need to use definable metrics that can be easily measured. However, it is important to recognise that you will need to avoid other factors which might include the skill set of teams, the morale and the complexity of processes. This will make it possible to identify measurable data that can be used effectively to shape your team, improve efficiencies and processes too.
Alongside benchmarking, it helps to use the right tools that will enable you to understand your findings and this is where scorecarding can prove extremely useful. It works alongside benchmarking but will enable managers to identify any anomalies and discrepancies. As a result of these findings and through scorecarding, managers can then take the right steps to improve performance. This will involve getting individuals involved in the process, as they will be required to complete a scorecard to evaluate their performance in relation to a number of criteria that is personal to them using a scheme that enables you to keep scores.
Once the scores have been analysed, the manager can put the scores and benchmarking together to create a wider picture. This will provide a detailed look of the team and how it is performing in relation to the environment. As a result, it will then be possible to implement changes, seek out weaknesses and make improvements that make the team more productive and efficient.