How to Effectively Create a Performance Benchmark for Your Business

Performance benchmarking is a crucial process for businesses to measure their performance against industry standards and identify areas for improvement. Creating an effective performance benchmark involves setting clear goals, selecting relevant metrics, and establishing a consistent methodology for measurement. In this article, we will explore the key steps for creating a performance benchmark that will help your business drive growth and achieve success. Whether you’re a small startup or an established enterprise, understanding how to create a performance benchmark is essential for staying competitive in today’s fast-paced business environment.

Understanding Performance Benchmarks

Definition and Importance

Creating a performance benchmark is an essential part of measuring the success of a business. A performance benchmark is a standard or reference point against which the performance of a business can be compared. It is used to assess the current state of a business and determine areas for improvement.

The importance of performance benchmarks lies in their ability to provide a clear picture of a business’s performance and help identify areas that need improvement. By establishing a benchmark, businesses can set realistic goals and measure their progress towards achieving them. Additionally, performance benchmarks can help businesses identify trends and patterns in their performance, allowing them to make data-driven decisions and improve their overall efficiency.

Furthermore, performance benchmarks can also be used to compare the performance of different departments or teams within a business. This can help identify areas where resources may be allocated more effectively and can lead to improved collaboration and communication between teams.

Overall, performance benchmarks are an essential tool for businesses looking to improve their performance and achieve their goals. By establishing a benchmark, businesses can set realistic targets, measure their progress, and make data-driven decisions to improve their overall efficiency.

Types of Performance Benchmarks

When it comes to creating a performance benchmark for your business, it’s important to understand the different types of benchmarks that exist. This section will discuss the various types of performance benchmarks that you can use to measure the performance of your business.

1. Process Benchmarks: These benchmarks are used to measure the performance of specific business processes. For example, if you want to measure the efficiency of your order fulfillment process, you can compare it to industry standards or best practices in the industry.
2. Functional Benchmarks: These benchmarks are used to measure the performance of specific business functions. For example, if you want to measure the performance of your human resources department, you can compare it to industry standards or best practices in the industry.
3. Competitive Benchmarks: These benchmarks are used to measure your business’s performance against your competitors. For example, if you want to measure your customer service performance against your competitors, you can compare your customer satisfaction ratings to theirs.
4. Strategic Benchmarks: These benchmarks are used to measure your business’s performance against your strategic goals and objectives. For example, if you want to measure your revenue growth against your strategic goals, you can compare it to your projected revenue growth.

Understanding the different types of performance benchmarks will help you choose the right benchmarks for your business and ensure that you are measuring the right things. It’s important to select benchmarks that are relevant to your business and will help you improve your performance over time.

Goals and Objectives

When it comes to creating a performance benchmark for your business, it’s important to have a clear understanding of your goals and objectives. These goals and objectives will serve as the foundation for your performance benchmark and will help you measure the success of your business.

It’s important to note that your goals and objectives should be specific, measurable, attainable, relevant, and time-bound (SMART). This means that they should be specific enough to be easily understood, measurable so that you can track progress, attainable so that they are realistic and achievable, relevant to your business and its goals, and time-bound so that you have a deadline to work towards.

Examples of SMART goals and objectives for a business might include:

• Increasing sales revenue by 10% within the next quarter
• Reducing customer service response time to under 24 hours
• Improving website traffic by 20% within the next six months
• Increasing employee productivity by 15% within the next year

Having specific, measurable, attainable, relevant, and time-bound goals and objectives will help you create a performance benchmark that is effective and relevant to your business.

Identifying Key Performance Indicators (KPIs)

Process

When it comes to creating a performance benchmark for your business, identifying the right Key Performance Indicators (KPIs) is crucial. Here’s a step-by-step process to help you identify the KPIs that matter most to your business:

1. Define your business objectives: The first step in identifying KPIs is to define your business objectives. What do you want to achieve with your business? What are your goals and objectives? By answering these questions, you can determine the KPIs that are most relevant to your business.
2. Determine the KPIs that matter: Once you have defined your business objectives, the next step is to determine the KPIs that matter most to your business. This will depend on your industry, business model, and target audience. For example, if you run an e-commerce business, your KPIs might include website traffic, conversion rates, and customer retention rates.
3. Measure your performance: With your KPIs identified, the next step is to measure your performance against them. This can be done using tools such as Google Analytics, which provides a wealth of data on website traffic, user behavior, and conversion rates.
4. Set benchmarks: Once you have measured your performance, the next step is to set benchmarks. Benchmarks are the targets you want to achieve for each KPI. For example, if your website traffic is currently at 10,000 visitors per month, your benchmark might be to increase traffic to 15,000 visitors per month by the end of the year.
5. Monitor and adjust: Finally, it’s important to monitor your performance and adjust your strategy as needed. This means regularly reviewing your KPIs and adjusting your approach based on the data you collect. By regularly monitoring your performance, you can identify areas where you need to improve and make data-driven decisions to help your business grow.

Common KPIs

When identifying Key Performance Indicators (KPIs) for your business, it is important to consider the most common KPIs that are relevant to your industry and specific business operations. Some common KPIs include:

• Revenue growth: This KPI measures the increase or decrease in revenue over a specific period of time. It is important to track revenue growth to determine the overall financial health of your business.
• Customer satisfaction: This KPI measures the level of satisfaction among your customers. It is important to track customer satisfaction to ensure that your business is meeting the needs and expectations of your customers.
• Employee engagement: This KPI measures the level of engagement and commitment among your employees. It is important to track employee engagement to ensure that your business has a motivated and productive workforce.
• Operational efficiency: This KPI measures the efficiency of your business operations. It is important to track operational efficiency to ensure that your business is running smoothly and effectively.
• Market share: This KPI measures the percentage of the market that your business controls. It is important to track market share to determine the competitiveness of your business in the market.

These are just a few examples of common KPIs that you may want to consider when identifying KPIs for your business. It is important to carefully select the KPIs that are most relevant to your business operations and goals.

Customizing KPIs for Your Business

Customizing KPIs for your business is crucial in order to measure the right performance metrics that are relevant to your organization’s goals and objectives. Here are some steps to follow when customizing KPIs for your business:

1. Align KPIs with Business Goals:
   • Begin by identifying the business goals and objectives that you want to achieve.
   • Ensure that the KPIs you select align with these goals and objectives.
   • For example, if your business goal is to increase revenue, then a relevant KPI could be the number of new customers acquired or the average revenue per customer.
2. Identify Key Metrics:
   • Once you have identified the business goals, identify the key metrics that are relevant to measuring performance.
   • These metrics should be quantifiable and measurable.
   • For example, if your business goal is to increase website traffic, then a relevant KPI could be the number of website visitors or the bounce rate.
3. Prioritize KPIs:
   • It is important to prioritize the KPIs that are most critical to your business goals.
   • Prioritize the KPIs that have the greatest impact on your business outcomes.
   • For example, if your business goal is to improve customer satisfaction, then a relevant KPI could be the Net Promoter Score (NPS), which measures customer loyalty and satisfaction.
4. Set Targets and Thresholds:
   • Set targets and thresholds for each KPI to track progress towards your business goals.
   • Ensure that the targets and thresholds are specific, measurable, achievable, relevant, and time-bound (SMART).
   • For example, if your business goal is to reduce customer churn, then a relevant KPI could be the customer churn rate. Set a target of reducing the churn rate by a certain percentage over a specific time period.
5. Monitor and Adjust:
   • Regularly monitor the KPIs to track progress towards your business goals.
   • Adjust the KPIs as needed to ensure they continue to align with your business goals.
   • For example, if you find that a particular KPI is no longer relevant or impactful, consider removing it from your performance benchmark.

By following these steps, you can effectively customize KPIs for your business and create a performance benchmark that will help you track progress towards your goals and objectives.

Creating Your Performance Benchmark

Step 1: Data Collection

When creating a performance benchmark for your business, the first step is to collect relevant data. This data should be collected from various sources and should cover different aspects of your business operations. Here are some tips for effective data collection:

Define Your Data Collection Goals

Before you start collecting data, it’s essential to define your goals. What do you want to achieve with your performance benchmark? Is it to measure the performance of your employees, products, or services? Defining your goals will help you focus on the right data and ensure that you collect the right information.

Choose the Right Data Sources

There are various sources of data that you can use to create your performance benchmark. Some of the common sources include:

• Internal Data: This includes data from your own systems, such as your CRM, ERP, and other business software. Internal data can provide valuable insights into your business operations, such as sales, customer service, and inventory management.
• External Data: This includes data from external sources, such as market research reports, industry benchmarks, and competitor analysis. External data can help you compare your performance with industry standards and identify areas for improvement.
• Customer Data: This includes data from your customers, such as feedback, surveys, and reviews. Customer data can provide valuable insights into customer satisfaction, preferences, and needs.

Collect a Variety of Metrics

When collecting data, it’s essential to collect a variety of metrics that cover different aspects of your business operations. Some of the common metrics include:

• Financial Metrics: These include metrics such as revenue, profit margin, and return on investment. Financial metrics can help you measure the financial performance of your business.
• Operational Metrics: These include metrics such as cycle time, lead time, and defect rate. Operational metrics can help you measure the efficiency and effectiveness of your business processes.
• Customer Metrics: These include metrics such as customer satisfaction, net promoter score, and customer lifetime value. Customer metrics can help you measure the customer experience and loyalty.

Ensure Data Accuracy and Integrity

It’s essential to ensure that the data you collect is accurate and reliable. This means that you should verify the data sources, validate the data quality, and ensure data security. You should also ensure that the data is complete and representative of your business operations.

In conclusion, data collection is a critical step in creating a performance benchmark for your business. By defining your goals, choosing the right data sources, collecting a variety of metrics, and ensuring data accuracy and integrity, you can create a comprehensive performance benchmark that can help you measure and improve your business performance.

Step 2: Analysis and Evaluation

Once you have gathered all the necessary data, it’s time to begin the analysis and evaluation process. This step is crucial as it will help you identify areas of improvement and establish realistic performance goals for your business. Here are some key points to consider during this stage:

• Identify key performance indicators (KPIs): Determine the metrics that are most relevant to your business and the goals you want to achieve. These could include things like revenue, customer satisfaction, website traffic, or employee retention.
• Analyze historical data: Look at past performance data to identify trends and patterns. This will help you understand how your business has evolved over time and identify areas where improvements have been made.
• Compare against industry benchmarks: Look at industry standards and benchmarks to see how your business compares. This will give you a broader perspective and help you identify areas where you may be underperforming or overperforming.
• Evaluate the data: Once you have analyzed the data, it’s time to evaluate it. Look for patterns, trends, and anomalies that could indicate areas of improvement or concern.
• Set performance goals: Based on your analysis and evaluation, set realistic performance goals for your business. These goals should be specific, measurable, achievable, relevant, and time-bound (SMART).
• Establish a system for ongoing monitoring: To ensure that you stay on track, establish a system for ongoing monitoring of your performance benchmark. This could include regular reports, dashboards, or other tools that help you track your progress over time.

Overall, the analysis and evaluation stage is all about gaining a deep understanding of your business’s performance and using that information to set realistic goals for improvement. By taking the time to carefully analyze and evaluate your data, you’ll be well on your way to creating an effective performance benchmark for your business.

Step 3: Establishing a Baseline

Creating a performance benchmark for your business is a crucial step towards achieving success. The first step in this process is to establish a baseline. A baseline is a starting point that will be used to measure the performance of your business over time.

Establishing a baseline involves gathering data on key performance indicators (KPIs) that are relevant to your business. These KPIs should be specific, measurable, and aligned with your business goals. Some examples of KPIs include sales revenue, customer satisfaction, website traffic, and employee turnover rate.

Once you have identified your KPIs, you need to collect data on them over a period of time. This data will provide you with a baseline for each KPI, which you can use to track your progress over time. It is important to note that the length of time you need to collect data will depend on the nature of your business and the KPIs you have chosen.

It is also important to ensure that the data you collect is accurate and reliable. This means using a consistent methodology for data collection and ensuring that data is recorded in a way that minimizes errors. Additionally, it is important to store your data in a secure location that is easily accessible to you and your team.

Having established a baseline, you can now move on to the next step in creating a performance benchmark for your business, which is setting performance targets.

Step 4: Setting Performance Targets

Setting performance targets is a crucial step in creating a performance benchmark for your business. These targets should be specific, measurable, attainable, relevant, and time-bound (SMART). This ensures that the targets are clear and achievable, and can be used to track progress over time.

To set performance targets, it is important to first identify the key performance indicators (KPIs) that will be used to measure progress. KPIs should be aligned with the overall goals of the business, and should be specific to the department or function being benchmarked. For example, if the department is sales, then KPIs could include revenue generated, number of leads generated, conversion rate, and customer satisfaction score.

Once the KPIs have been identified, the next step is to set specific targets for each KPI. This can be done by looking at historical data and industry benchmarks to determine what a realistic target should be. It is important to set targets that are challenging but achievable, as this will motivate the team to work towards improving performance.

It is also important to ensure that the targets are relevant to the overall goals of the business. This means that they should align with the company’s mission and vision, and should support the long-term success of the business.

Finally, it is important to set a timeframe for achieving the targets. This will help to create a sense of urgency and ensure that progress is made towards achieving the targets. Regular reviews should be conducted to track progress towards the targets, and adjustments should be made as necessary to ensure that they are achieved.

In summary, setting performance targets is a critical step in creating a performance benchmark for your business. By setting SMART targets that are aligned with the overall goals of the business, you can ensure that progress is tracked and that the business is moving in the right direction.

Step 5: Implementation and Monitoring

Introduction

After you have defined your performance benchmark and established your key performance indicators (KPIs), it’s time to put your plan into action. The implementation and monitoring phase is critical to the success of your performance benchmark, as it is during this phase that you will track your progress and make any necessary adjustments to ensure that you are on track to meet your goals.

Setting Up a System for Monitoring

To effectively monitor your performance benchmark, you will need to set up a system for tracking your KPIs. This can be done using specialized software or tools, such as a project management tool or a custom-built dashboard. It’s important to choose a system that is easy to use and provides real-time data, so that you can quickly identify any issues that may arise.

Tracking Progress

Once your system is set up, it’s time to start tracking your progress. This involves regularly reviewing your KPIs to see how you are performing against your established benchmarks. It’s important to track your progress on a regular basis, as this will allow you to identify any trends or patterns that may be emerging.

Identifying and Addressing Issues

As you track your progress, you may identify issues or challenges that are impacting your performance. It’s important to address these issues as soon as possible, as they can quickly derail your progress and prevent you from achieving your goals. To address issues, you may need to make adjustments to your plan, such as revising your KPIs or changing your approach to achieving your goals.

Adjusting Your Plan

In some cases, you may need to adjust your plan in order to stay on track. This can involve making changes to your KPIs, adjusting your timeline, or revising your approach to achieving your goals. It’s important to be flexible and willing to make changes as needed, as this will help you to stay on track and achieve your desired outcomes.

Conclusion

The implementation and monitoring phase is a critical component of creating a performance benchmark for your business. By setting up a system for monitoring, tracking your progress, identifying and addressing issues, and adjusting your plan as needed, you can ensure that you are on track to meet your goals and achieve your desired outcomes.

Continuous Improvement

Creating a performance benchmark for your business is not a one-time task. It requires continuous improvement to ensure that it remains relevant and effective in driving business growth. Here are some steps to follow:

Establish a Process for Continuous Improvement

To achieve continuous improvement, you need to establish a process that allows you to regularly review and update your performance benchmarks. This process should include the following steps:

1. Regularly review your performance benchmarks to identify areas that need improvement.
2. Gather feedback from employees, customers, and other stakeholders to identify areas for improvement.
3. Update your performance benchmarks based on the feedback received and any changes in the business environment.

Incorporate Feedback from Employees and Customers

Employees and customers are often the best sources of feedback on your business processes and performance. Encourage them to provide feedback on your performance benchmarks and use this feedback to make improvements. This can include:

1. Conducting regular employee surveys to gather feedback on your performance benchmarks.
2. Encouraging customers to provide feedback on your products and services through surveys or customer feedback forms.
3. Incorporating this feedback into your performance benchmarks to ensure they remain relevant and effective.

Use Data to Track Progress and Identify Areas for Improvement

Data is a critical tool for tracking progress and identifying areas for improvement. Use data to track your performance against your performance benchmarks and identify areas where you need to improve. This can include:

1. Tracking key performance indicators (KPIs) to measure progress against your performance benchmarks.
2. Analyzing data to identify trends and patterns that can help you improve your performance.
3. Using data to identify areas where you are underperforming and developing strategies to improve your performance.

Continuously Evaluate and Adjust Your Performance Benchmarks

Continuous improvement requires a willingness to evaluate and adjust your performance benchmarks as needed. Regularly review your performance benchmarks to ensure they remain relevant and effective in driving business growth. This can include:

1. Conducting regular reviews of your performance benchmarks to identify areas that need improvement.
2. Adjusting your performance benchmarks based on changes in the business environment or new opportunities.
3. Ensuring that your performance benchmarks remain aligned with your overall business goals and objectives.

By following these steps, you can create a performance benchmark for your business that drives continuous improvement and helps you achieve your business goals.

Implementing and Communicating Your Performance Benchmark

Employee Training and Engagement

Employee training and engagement are critical components of effectively creating and implementing a performance benchmark for your business. Here are some steps to consider:

Step 1: Develop a Comprehensive Training Program

Develop a comprehensive training program that includes information on the performance benchmark, its purpose, and how it relates to the employee’s role in the company. The training program should be tailored to the employee’s level of experience and skill set, ensuring that they have a clear understanding of the expectations and how to meet them.

Step 2: Communicate the Importance of the Performance Benchmark

Communicate the importance of the performance benchmark to employees, emphasizing its role in driving the company’s success. This can be done through company-wide meetings, emails, and other communication channels.

Step 3: Provide Ongoing Support and Feedback

Provide ongoing support and feedback to employees, helping them to understand how they can improve their performance and meet the benchmark. This can be done through regular performance reviews, coaching sessions, and feedback from peers and supervisors.

Step 4: Encourage Employee Engagement

Encourage employee engagement by involving them in the process of setting and achieving the performance benchmark. This can be done by creating opportunities for employees to provide feedback and input on the benchmark, and by recognizing and rewarding employees who meet or exceed the benchmark.

Step 5: Monitor and Adjust the Performance Benchmark

Monitor and adjust the performance benchmark as needed, based on changes in the company’s goals and objectives, industry trends, and employee feedback. This will ensure that the benchmark remains relevant and effective in driving the company’s success.

By following these steps, you can effectively train and engage your employees in the process of creating and implementing a performance benchmark for your business. This will help to ensure that all employees are aligned with the company’s goals and working towards the same objectives, ultimately leading to increased productivity and success.

External Communication

Effective communication of your performance benchmark is crucial to ensure that all stakeholders are aware of the expectations and goals set for the business. External communication refers to the dissemination of information to parties outside the organization, such as customers, suppliers, investors, and regulators.

Here are some key points to consider when communicating your performance benchmark externally:

• Clear and concise messaging: When communicating your performance benchmark to external parties, it is important to ensure that your message is clear and concise. Use simple language and avoid technical jargon to ensure that your message is easily understood by all stakeholders.
• Transparency: Transparency is essential when communicating your performance benchmark to external parties. Be open and honest about your goals and expectations, and provide regular updates on progress towards achieving these goals.
• Alignment with business objectives: Ensure that your performance benchmark is aligned with the overall business objectives and strategy. This will help to ensure that all stakeholders understand how the performance benchmark fits into the bigger picture and how it contributes to the success of the business.
• Consistency: Ensure that your performance benchmark is consistently communicated to all external parties. This will help to build trust and credibility with stakeholders, and ensure that they have a clear understanding of what is expected of them.
• Regular reporting: Regular reporting on progress towards achieving the performance benchmark is essential to keep external stakeholders informed and engaged. This can be done through regular updates, newsletters, or press releases.

Overall, effective external communication of your performance benchmark is essential to ensure that all stakeholders are aware of the expectations and goals set for the business. By following these key points, you can ensure that your performance benchmark is effectively communicated to all external parties.

Performance Reviews and Incentives

One of the key aspects of implementing and communicating your performance benchmark is through performance reviews and incentives. Regular performance reviews can help keep employees engaged and motivated, while also providing an opportunity to track progress towards benchmark goals. Incentives, such as bonuses or promotions, can be used to reward employees who meet or exceed benchmark performance levels.

Here are some best practices for incorporating performance reviews and incentives into your performance benchmark strategy:

1. Establish clear performance expectations: Before conducting performance reviews, it’s important to establish clear performance expectations that are aligned with your benchmark goals. This will help ensure that employees understand what is expected of them and can focus their efforts on meeting those expectations.
2. Provide regular feedback: Regular feedback is essential for keeping employees engaged and motivated. During performance reviews, provide specific feedback on employee performance, both in terms of meeting benchmark goals and areas for improvement.
3. Use a variety of incentives: Incentives can come in many forms, including bonuses, promotions, extra time off, or other perks. Consider offering a variety of incentives to keep employees motivated and engaged.
4. Align incentives with benchmark goals: Ensure that incentives are aligned with your benchmark goals. For example, if your benchmark goal is to increase sales revenue, consider offering bonuses or commissions to employees who meet or exceed sales targets.
5. Communicate the value of benchmarks: Help employees understand the value of performance benchmarks by explaining how they align with the company’s overall goals and objectives. This can help motivate employees to work towards meeting benchmark goals and can help create a sense of shared purpose within the organization.

By incorporating performance reviews and incentives into your performance benchmark strategy, you can help keep employees engaged and motivated while also tracking progress towards your benchmark goals.

Key Takeaways

• Establishing clear and measurable performance metrics is crucial for the success of any business.
• Regularly reviewing and updating performance benchmarks ensures that they remain relevant and effective.
• Communicating performance benchmarks to employees and stakeholders is essential for buy-in and accountability.
• Utilizing technology can help streamline the process of tracking and analyzing performance data.
• Celebrating successes and acknowledging areas for improvement can help create a positive and growth-oriented culture.

Future Considerations

Creating a performance benchmark for your business is an ongoing process that requires continuous evaluation and improvement. As your business grows and evolves, it is important to regularly review and update your performance benchmarks to ensure they remain relevant and effective. Here are some future considerations to keep in mind when creating and implementing performance benchmarks for your business:

Keeping Up with Industry Standards

As your business evolves, it is important to keep up with industry standards and best practices. This means regularly reviewing and updating your performance benchmarks to ensure they are in line with industry standards and best practices. Keeping up with industry standards will help you stay competitive and ensure that your business remains relevant in the marketplace.

Adapting to Changes in the Business Environment

Your business environment is constantly changing, and it is important to adapt your performance benchmarks to keep up with these changes. This may include changes in customer needs and preferences, new technologies, or changes in the competitive landscape. Regularly reviewing and updating your performance benchmarks will help you stay ahead of the curve and ensure that your business remains competitive.

Continuously Improving Your Performance

Performance benchmarks should not be seen as a static goal, but rather as a target to continuously improve towards. As you achieve your performance benchmarks, it is important to set new targets and continue to push for improvement. This will help you stay ahead of the competition and ensure that your business remains successful over the long term.

Engaging Employees in the Process

Finally, it is important to engage your employees in the process of creating and implementing performance benchmarks. This will help ensure that everyone in the organization is working towards the same goals and that everyone is aligned around the performance benchmarks. Engaging employees in the process will also help create a sense of ownership and accountability, which will ultimately lead to better performance and success for the business.

FAQs

1. What is a performance benchmark?

A performance benchmark is a tool used to measure the performance of a business or a specific process within a business. It is used to set standards and goals for performance, and to track progress over time.

2. Why is it important to create a performance benchmark?

Creating a performance benchmark is important because it allows businesses to set clear goals and objectives for their performance. It also helps to identify areas where improvements can be made, and to track progress over time. This can lead to increased efficiency and productivity, as well as improved customer satisfaction.

3. How do I create a performance benchmark?

To create a performance benchmark, you will need to identify the key performance indicators (KPIs) that are relevant to your business. These could include metrics such as sales revenue, customer satisfaction, and employee productivity. Once you have identified your KPIs, you will need to establish baseline measurements for each of them. This will serve as a starting point for tracking progress over time.

4. How often should I measure my performance benchmark?

The frequency of measuring your performance benchmark will depend on the specific KPIs you have identified. Some KPIs may need to be measured daily, while others may only need to be measured monthly or quarterly. It is important to establish a regular schedule for measuring your KPIs, so that you can track progress over time and identify areas where improvements can be made.

5. How do I interpret the results of my performance benchmark?

Interpreting the results of your performance benchmark involves comparing your current performance to your established benchmarks. If your performance is above the benchmark, it indicates that you are meeting or exceeding your goals. If your performance is below the benchmark, it indicates that improvements can be made. It is important to analyze the results of your performance benchmark in order to identify areas where improvements can be made and to develop a plan for achieving your goals.

Different types of benchmarking: Examples And Easy Explanations