The U.S. statistics system needs to be overhauled for the government to be able to formulate and implement its economic policies on a sound basis. Budget reductions have deprived the system of much-needed resources, resulting in an overemphasis on manufacturing and agriculture. Statistical discrepancies affecting important economic indicators have raised serious issues concerning the economy. It may be that GDP and productivity have grown more rapidly than the reported data indicate. This makes it difficult to place considerable reliance on economic forecasts.
Capital is no longer the most important economic input for a modern industrial corporation.
So the capital-based indicators for assessing corporate productivity are fundamentally flawed. This article presents new ways of defining and calculating productivity. Effective benchmarking can be done by focusing on the business goal, proper planning and cooperation and coordination among the company managers and employees. Consequently the highest standards for products and services will be set and necessary adjustments will be made to meet these standards. Inaccurate statistical analysis, improper implementation and employee resistance can become benchmarking hurdles.