Business Differentiation Study To Share Secrets of Industry Winners
Posted 09/21/06
High performing leasing and finance companies are the envy of all. But, what do these “outperformers” actually do that cause them to exceed industry averages? The latest Foundation research project attempts to answer that question. The study, Business Differentiation: What makes a select few leasing companies consistently outperform their peers?, developed by Accenture, brings new information to the forefront about these “outperformers” by examining the characteristics of leading leasing and financing companies. It will be available for download from the Foundation library in October 2006.
“Company owners and management teams should be in constant pursuit of ‘improvement.’ But, against what standards or metrics? Do ‘best practices’ translate to financial measurements such as revenue, profit, sustained growth? Are there practices and performance that consistently differentiate the ‘winners’ from the ‘others’?” asks Joseph C. Lane, Foundation Chair. “These were the core questions around which the Foundation commissioned a research project to pursue fact-based conclusions.”
He continues, “The Business Differentiation study provides practical, analytical, and empirical data that will be of interest to everyone who competes in the equipment leasing and financing industry. What makes the ‘winners’ perform better? What are the tell-tale signs of a company that may have lost its focus? The Differentiation Study is a ‘must read’ for competitively-driven performers.”
The highly successful companies studied, showed over the last five years their average operating ROE was 22.5 percent and their compound annual growth rate was 5.2 percent. This is in contrast to their lesser-performing peers whose average operating ROI was 12.5 percent and growth rate of 3.5 percent.
The study’s findings show that superior financial performance reflects a long-term strategic view that stresses organic growth, customer centricity, partnership with their workforce, operational creativity and an external focus that fosters deep ties with stakeholders.
The industry winners also know how to expand revenues more quickly, control costs more effectively, and manage risk.
The characteristics and perspectives of these industry winners will provide useful guidance to all leasing and finance companies.
The report will be available for download from the Foundation library in October at www.Leasefoundation.org/store.
Sites of Reference:
www.Leasefoundation.org/store
CONTACT:
Lisa A. Levine, CAE
Equipment Leasing & Finance Foundation
Phone Number: 703-527-8655
Fax Number: 703-465-7488
E-mail: llevine@elamail.com
