Budgeting & Forecasting Interview Q&A
This section offers a curated set of interview questions, with insights into what interviewers are assessing, key elements to include in your responses, and CandiMentor’s suggested sample answers to help you prepare with confidence.
A. Budgeting Fundamentals & Frameworks
Q1: How do you ensure accuracy and consistency in budget templates used by various departments?
What the interviewer wants to test: The interviewer is testing your attention to detail and ability to implement controls in financial processes.
- Attention to detail
- Implementation of controls
- Cross-department collaboration
To ensure accuracy and consistency, I establish standardized templates with clearly defined guidelines and conduct regular training sessions for department heads. I also implement a review process where templates are audited periodically to ensure compliance and accuracy before final submission.
Q2: What are the key components of an effective operating budget?
What the interviewer wants to test: The interviewer is assessing your knowledge of budgeting processes and your ability to identify critical elements for effective financial planning.
- Revenue projections
- Expense forecasts
- Variance analysis
An effective operating budget includes accurate revenue projections based on historical data and market analysis, detailed expense forecasts that account for both fixed and variable costs, and a mechanism for variance analysis to compare actual performance against the budget. This ensures that the organization can make informed financial decisions and maintain financial health.
Q3: How do you incorporate seasonality into budget preparation?
What the interviewer wants to test: Ability to integrate seasonal trends into financial planning
- Historical data analysis
- Forecast adjustments
- Flexible budgeting
To incorporate seasonality into budget preparation, I analyze historical data to identify seasonal patterns and trends. I then adjust forecasts to reflect these patterns, ensuring that budget allocations align with expected fluctuations in revenue and expenses. Additionally, I use flexible budgeting techniques to allow for adjustments as actual results and seasonal impacts become more apparent throughout the fiscal year.
Q4: What challenges do you face in consolidating budgets across multiple business units?
What the interviewer wants to test: The interviewer is testing your understanding of budget consolidation complexities and problem-solving skills.
- Understanding of consolidation challenges
- Problem-solving approach
- Experience with diverse business units
One of the main challenges is ensuring consistency in financial reporting standards across all units, as different units may have varying accounting practices. Another challenge is dealing with discrepancies in data quality and timeliness, which can impact the accuracy of the consolidated budget. To address these, I prioritize establishing a standardized reporting framework and maintain open communication with each unit to ensure alignment and timely data submission.
Q5: How do you ensure budget compliance across the organization during the financial year?
What the interviewer wants to test: The interviewer is assessing your ability to enforce budgetary controls and ensure adherence to financial plans.
- Budget monitoring
- Compliance strategies
- Communication with stakeholders
To ensure budget compliance, I implement regular financial reviews and variance analysis to monitor performance against the budget. I also establish clear guidelines and procedures for budget adjustments, ensuring any changes are justified and approved. Additionally, I work closely with department heads to foster a culture of financial accountability and provide training on budget management principles.
Q6: Describe your approach to building capital expenditure budgets.
What the interviewer wants to test: The interviewer is testing your ability to plan, prioritize, and justify capital investments.
- Identifying strategic priorities
- Cost estimation and forecasting
- Risk assessment and ROI analysis
My approach to building capital expenditure budgets involves identifying strategic priorities that align with the company’s long-term goals. I estimate costs and forecast future expenses to ensure accuracy and feasibility. Additionally, I perform a risk assessment and ROI analysis to justify each investment, ensuring that we allocate resources effectively and achieve desired outcomes.
Q7: How do you decide between top-down and bottom-up budgeting approaches?
What the interviewer wants to test: The interviewer is assessing your understanding of budgeting methodologies and decision-making skills.
- Understanding of budgeting approaches
- Decision-making criteria
- Application to business context
The choice between top-down and bottom-up budgeting depends on the organization's structure and strategic goals. Top-down budgeting is effective when senior management needs quick control over budget allocation and alignment with strategic objectives. Bottom-up budgeting, however, is beneficial for gaining insights from operational levels and enhancing employee engagement. I would evaluate factors such as the need for strategic alignment, the complexity of operations, and the level of employee input required to decide the most suitable approach.
Q8: Walk me through the end-to-end process of preparing an annual budget in a large organization.
What the interviewer wants to test: The interviewer is assessing your understanding of budget preparation and your ability to manage complex financial processes.
- Data collection and analysis
- Budget formulation and approval
- Monitoring and adjustments
The annual budget preparation begins with collecting historical financial data and forecasting future revenues and expenses. Next, departments submit their budget requests, which are reviewed and consolidated by the finance team. This draft budget is then presented to senior management for approval. Once approved, the budget is monitored monthly to track variances, allowing for adjustments as necessary.
Q9: Explain the differences between incremental budgeting and zero-based budgeting.
What the interviewer wants to test: Understanding of budgeting methodologies and their impact on financial planning.
- Incremental budgeting builds on previous budgets
- Zero-based budgeting starts from zero
- Resource allocation efficiency
Incremental budgeting involves using the previous year's budget as a base and making adjustments for the new period. It is straightforward but may perpetuate inefficiencies. Zero-based budgeting, on the other hand, requires building each new budget from scratch, justifying every expense. This approach promotes cost efficiency but can be time-consuming.
Q10: How do you align departmental budgets with overall corporate strategy?
What the interviewer wants to test: Understanding of strategic planning and budget alignment.
- Strategic priorities
- Cross-departmental collaboration
- Performance metrics
I align departmental budgets with corporate strategy by first understanding the strategic priorities of the organization. I collaborate with other departments to ensure that budget allocations support these priorities. Additionally, I utilize performance metrics to track the effectiveness of budget utilization in achieving strategic goals, making adjustments as necessary.
B. Forecasting Methods & Accuracy
Q11: Explain the role of driver-based forecasting in modern FP&A.
What the interviewer wants to test: Understanding of driver-based forecasting and its significance in FP&A.
- Definition of driver-based forecasting
- Benefits in FP&A
- Examples of key drivers
Driver-based forecasting focuses on identifying and analyzing the key business drivers that impact financial outcomes, allowing for more accurate and dynamic financial planning. It enables FP&A teams to create models that adapt to changes in business conditions, improve decision-making, and increase forecast accuracy by linking financial outcomes to operational metrics. Key drivers might include sales volume, pricing strategies, or market trends.
Q12: What’s your process for incorporating real-time data into updated forecasts?
What the interviewer wants to test: The interviewer is testing your analytical skills and ability to adapt forecasts with dynamic data.
- Data integration
- Forecast accuracy
- Analytical tools
To incorporate real-time data into updated forecasts, I first ensure that our data streams are integrated into our forecasting models using appropriate tools like BI software. I then validate the data for accuracy and relevance, adjusting the assumptions in our models to reflect current trends. This iterative process helps maintain forecast accuracy and supports informed decision-making.
Q13: How do you improve forecast accuracy in a volatile business environment?
What the interviewer wants to test: The interviewer is testing your strategic thinking and ability to adapt forecasting methods to changing conditions.
- Data analysis
- Scenario planning
- Continuous monitoring
Improving forecast accuracy in a volatile environment involves leveraging advanced data analytics to identify trends and anomalies. Scenario planning is crucial to anticipate possible future states and adjust forecasts accordingly. Continuous monitoring of key indicators allows for real-time adjustments, ensuring forecasts remain relevant and accurate.
Q14: Describe your approach to building a rolling forecast and how it differs from an annual budget.
What the interviewer wants to test: The interviewer is testing your understanding of financial planning techniques and adaptability in forecasting.
- Understanding of rolling forecasts
- Differences from annual budgets
- Adaptability and responsiveness
My approach to building a rolling forecast involves continuously updating financial projections on a monthly or quarterly basis, extending the forecast period by the same increment. This allows for a more dynamic and responsive planning process compared to an annual budget, which is typically static and set once a year. Rolling forecasts help in adapting to changes in the business environment, providing more accurate and timely insights for decision-making.
Q15: How do you handle limited historical data when building forecasts for a new product or market?
What the interviewer wants to test: The interviewer is assessing your analytical skills and creativity in forecasting with limited data.
- Use of proxies or analogs
- Scenario analysis
- Iterative refinement
When historical data is limited, I rely on analogs from similar products or markets to build initial models. I also use scenario analysis to explore different potential outcomes and refine forecasts as more data becomes available. Collaborating with market experts and using qualitative insights can also enhance the accuracy of the forecasts.
Q16: How do you decide which forecasting method (trend, regression, moving average, etc.) to use for revenue?
What the interviewer wants to test: Ability to choose appropriate forecasting methods based on data characteristics.
- Data pattern analysis
- Historical data availability
- Forecasting accuracy
I choose the forecasting method based on data patterns and historical trends. If the data shows a clear trend, I might use a trend analysis. For relationships between variables, regression analysis is suitable. If the data is stable and seasonal, a moving average can smooth fluctuations. The choice is driven by the need for accuracy and the nature of the data available.
Q17: How do you present forecast changes to senior management without undermining confidence?
What the interviewer wants to test: The interviewer is assessing your communication skills and ability to manage stakeholder expectations.
- Effective communication
- Building trust
- Providing context
When presenting forecast changes to senior management, I ensure clarity by explaining the reasons behind the changes, provide data-driven insights to support the new forecasts, and highlight any opportunities that may arise from the adjustments, thereby maintaining confidence and trust in the process.
Q18: What external factors do you consider in financial forecasts?
What the interviewer wants to test: The interviewer is assessing your ability to identify and incorporate external variables in financial planning.
- Economic conditions
- Industry trends
- Regulatory changes
In financial forecasts, I consider economic indicators like GDP growth and interest rates, industry-specific trends, and potential regulatory changes. These factors help in creating realistic projections by accounting for external influences that could impact the company's financial performance.
Q19: How do you deal with persistent forecast variances?
What the interviewer wants to test: The interviewer is assessing your analytical skills and ability to improve forecasting accuracy.
- Analyzing variance trends
- Identifying underlying causes
- Implementing corrective measures
I would start by analyzing the variance trends to pinpoint consistent discrepancies. Next, I would investigate potential causes, such as incorrect assumptions or external factors. After identifying the root causes, I would adjust the forecasting model and assumptions accordingly, and implement a monitoring process to ensure ongoing accuracy.
Q20: How do you validate the assumptions behind a forecast?
What the interviewer wants to test: The interviewer is testing your analytical skills and ability to critically assess the assumptions used in financial forecasting.
- Critical evaluation of assumptions
- Use of historical data
- Sensitivity analysis
I validate forecast assumptions by comparing them with historical data trends and industry benchmarks to ensure they are realistic. I also perform sensitivity analysis to understand the impact of changes in key assumptions. Engaging with cross-functional teams provides additional insights and helps refine the assumptions used in the forecast.
C. Variance Analysis & Performance Monitoring
Q21: How do you structure a variance analysis to highlight key business drivers?
What the interviewer wants to test: The interviewer is assessing your analytical skills and ability to identify critical business factors.
- Understanding of variance analysis
- Identification of key drivers
- Ability to present data clearly
To structure a variance analysis, I first categorize variances into revenue, cost, and operational segments. I then identify key drivers by comparing actual performance against budgeted figures, focusing on significant deviations. Finally, I present these findings in a concise report, highlighting trends and suggesting actionable insights.
Q22: Describe a situation where variance analysis helped identify operational inefficiencies.
What the interviewer wants to test: The interviewer is evaluating your analytical skills and experience in identifying and addressing inefficiencies.
- Analytical skills
- Experience with variance analysis
- Problem-solving
In a previous role, I conducted a variance analysis on the production budget and identified a significant cost overrun in raw materials. By investigating further, I discovered that the inefficiency was due to supplier delays causing rush orders at higher costs. I recommended a change in supplier and implemented a just-in-time inventory system, which reduced costs and improved efficiency.
Q23: What’s your approach when actual results deviate significantly from budget?
What the interviewer wants to test: The interviewer is evaluating your problem-solving skills and ability to manage financial discrepancies.
- Variance analysis
- Problem-solving
- Budget management
When actual results deviate from the budget, I conduct a thorough variance analysis to identify the root causes. I engage with relevant departments to understand operational discrepancies and adjust forecasts if necessary. My focus is on implementing corrective actions to align future performance with financial objectives.
Q24: How do you handle cases where favorable variances mask underlying business issues?
What the interviewer wants to test: The interviewer is assessing your analytical skills and ability to look beyond surface-level data.
- Analytical skills
- Problem identification
- Proactive approach
When favorable variances mask underlying issues, I delve deeper into the data to identify root causes. I examine trends over time, compare with industry benchmarks, and conduct variance analysis at a granular level. This approach helps ensure that strategic decisions are informed by a comprehensive understanding of the business landscape.
Q25: What metrics or KPIs do you track to assess budget effectiveness?
What the interviewer wants to test: The interviewer is assessing your understanding of budget management and your ability to use metrics to evaluate financial performance.
- Budget variance
- Return on investment (ROI)
- Cost per unit
To assess budget effectiveness, I track metrics such as budget variance to monitor differences between projected and actual figures, ROI to evaluate the financial return of investments, and cost per unit to ensure cost efficiency in production or service delivery.
Q26: What role does root cause analysis play in addressing budget shortfalls?
What the interviewer wants to test: The interviewer wants to evaluate your problem-solving skills and understanding of financial analysis.
- Analytical skills
- Problem-solving
- Financial insight
Root cause analysis is critical in addressing budget shortfalls as it helps identify the underlying reasons for the variance. By understanding the root causes, we can implement targeted corrective actions and improve future budgeting processes. This approach not only resolves immediate financial issues but also enhances the overall financial health of the organization.
Q27: How do you integrate variance analysis into management dashboards?
What the interviewer wants to test: Understanding of variance analysis and dashboard integration.
- Data collection
- Key performance indicators
- Visual representation
Integrating variance analysis into management dashboards involves collecting relevant financial data, identifying key performance indicators, and visually representing variances to highlight discrepancies. This enables management to quickly identify areas requiring attention and make informed decisions based on real-time insights.
Q28: How do you separate volume variance from price variance in revenue analysis?
What the interviewer wants to test: The interviewer is assessing your analytical skills and understanding of revenue variance analysis.
- Understanding of revenue components
- Analytical skills
- Ability to interpret variances
To separate volume variance from price variance, I first calculate the expected revenue based on prior period prices and volumes. Volume variance is determined by comparing expected revenue at prior period prices with actual revenue at prior period prices, while price variance is assessed by comparing actual revenue with expected revenue at current period volumes. This helps isolate the impact of pricing changes from shifts in sales volume.
Q29: How do you monitor and report performance against budget on a monthly or quarterly basis?
What the interviewer wants to test: The interviewer is assessing your financial monitoring skills and your ability to provide actionable insights.
- Variance analysis
- Regular reporting
- Stakeholder communication
I monitor performance against budget by conducting regular variance analysis to identify discrepancies between actuals and forecasts. I prepare detailed reports on a monthly or quarterly basis, highlighting key variances and underlying reasons. I also ensure timely communication with stakeholders to discuss corrective actions if needed.
Q30: How do you ensure action plans are developed after identifying budget variances?
What the interviewer wants to test: The interviewer is assessing your analytical skills, attention to detail, and ability to implement corrective measures.
- Analytical skills
- Collaboration
- Monitoring
Upon identifying budget variances, I collaborate with department heads to understand the root causes. Together, we develop actionable plans to address these variances, setting clear objectives and timelines. I then monitor progress through regular follow-ups and adjust plans as necessary to ensure financial goals are met.
D. Cross-Functional Collaboration & Stakeholder Management
Q31: How do you ensure that budget and forecast processes are collaborative rather than finance-driven?
What the interviewer wants to test: The interviewer is assessing your ability to foster collaboration and inclusivity in financial planning.
- Cross-departmental involvement
- Open communication
- Feedback mechanisms
To ensure collaborative budget and forecast processes, I involve key stakeholders from various departments early on. This includes organizing cross-functional meetings to gather input and align goals. I also establish open communication channels to encourage feedback and ensure transparency throughout the process.
Q32: Describe how you involve senior leadership in the forecasting process.
What the interviewer wants to test: Ability to engage and collaborate with senior management for strategic planning.
- Regular updates
- Strategic input
- Decision-making support
I involve senior leadership in the forecasting process by regularly providing updates and gathering their strategic input to ensure alignment with organizational goals. Their insights are crucial for making informed decisions and adjusting forecasts to reflect changing market conditions and business priorities.
Q33: How do you communicate budget constraints without demotivating teams?
What the interviewer wants to test: The interviewer is assessing your communication skills and ability to manage team morale.
- Effective communication
- Empathy
- Problem-solving
I approach this by first acknowledging the team's efforts and the importance of their work. I then explain the budget constraints transparently and involve them in brainstorming solutions, ensuring they feel valued and part of the decision-making process. This fosters a collaborative environment where challenges are seen as opportunities for innovation.
Q34: Describe a time when you had to reforecast mid-year due to an unexpected business event.
What the interviewer wants to test: The interviewer is assessing your adaptability and problem-solving skills in financial planning.
- Adaptability
- Problem-solving
- Financial acumen
During my tenure at XYZ Corp, an unexpected market downturn required a mid-year reforecast. I collaborated with department heads to gather updated data, analyzed the impact on revenue streams, and adjusted our financial models accordingly. This proactive approach helped us reallocate resources efficiently and maintain financial stability despite the challenging circumstances.
Q35: How do you manage budget adjustments in response to changes in corporate strategy?
What the interviewer wants to test: The interviewer is testing your ability to adapt financial plans to align with strategic goals.
- Understanding of corporate strategy
- Adaptability in financial planning
- Budget management skills
I begin by thoroughly analyzing the new corporate strategy to understand its financial implications. Then, I identify areas within the existing budget that can be reallocated or adjusted. I collaborate with department heads to ensure that the budget aligns with strategic priorities, making necessary adjustments while maintaining financial discipline.
Q36: How do you balance the need for financial control with operational flexibility?
What the interviewer wants to test: The interviewer is testing your ability to maintain financial discipline while allowing for flexibility in operations.
- Financial control
- Operational flexibility
- Balancing strategies
Balancing financial control with operational flexibility involves setting clear financial guidelines and allowing departments to operate within those boundaries. I ensure robust financial controls through regular audits and monitoring, while also fostering a culture of innovation by empowering teams to make decisions within established financial frameworks. This balance is achieved by aligning financial goals with operational objectives, thus enabling agility without compromising financial integrity.
Q37: Describe your approach to ensuring buy-in from operational managers for budget targets.
What the interviewer wants to test: Ability to communicate and negotiate budget targets with operational managers.
- Communication skills
- Negotiation
- Alignment with business goals
To ensure buy-in from operational managers, I engage them early in the budget planning process to understand their perspectives and constraints. I present data-driven justifications for targets and encourage open dialogue to address concerns. By aligning budget goals with their operational objectives, I foster a collaborative environment and secure their commitment.
Q38: How do you ensure accountability for budget performance at the departmental level?
What the interviewer wants to test: The interviewer is assessing your ability to implement and monitor budget controls and your skills in fostering accountability within teams.
- Clear communication of expectations
- Regular performance reviews
- Effective use of reporting tools
I ensure accountability by setting clear budget expectations and performance targets at the start of the fiscal period. I hold regular meetings to review departmental performance against the budget, using detailed reports to identify variances. Additionally, I encourage department heads to take ownership of their budgets by linking performance evaluations to financial outcomes.
Q39: What’s your approach to coaching non-financial managers on budgeting concepts?
What the interviewer wants to test: The interviewer is assessing your ability to communicate complex financial concepts to non-financial stakeholders.
- Communication skills
- Simplifying complex concepts
- Engagement techniques
My approach involves simplifying budgeting concepts by using relatable analogies and practical examples that resonate with their specific roles. I focus on key elements like revenue, expenses, and cash flow, explaining how these impact their departmental goals. Additionally, I encourage interactive sessions where managers can ask questions and engage in hands-on exercises, reinforcing their understanding and application of budgeting principles.
Q40: How do you manage conflicts between finance and business units during budget discussions?
What the interviewer wants to test: The interviewer is testing your conflict resolution skills and ability to balance differing priorities.
- Active listening
- Negotiation skills
- Consensus building
I manage conflicts by actively listening to both sides to understand their needs and concerns. I facilitate open discussions to find common ground and use data-driven insights to support decision-making. My goal is to build consensus by highlighting the benefits of a collaborative approach and ensuring that all parties feel heard and valued.
E. Technology, Tools & Process Improvement
Q41: How do you automate budget data consolidation from multiple sources?
What the interviewer wants to test: The interviewer is assessing your technical skills and understanding of automation tools in finance.
- Data integration
- Automation tools
- Error reduction
Automating budget data consolidation involves using integration tools like ETL (Extract, Transform, Load) processes to unify data from disparate sources. Implementing automation software such as RPA (Robotic Process Automation) reduces manual errors and enhances efficiency. This approach ensures timely and accurate data consolidation, facilitating better financial analysis and decision-making.
Q42: What budgeting and forecasting tools have you used (e.g., SAP BPC, Oracle Hyperion, Anaplan)?
What the interviewer wants to test: Experience with budgeting and forecasting tools.
- Tool experience
- Functional knowledge
- Integration capabilities
I have extensive experience with SAP BPC for its robust planning and consolidation capabilities. I have also used Oracle Hyperion for its powerful analytics and reporting features. Additionally, I am familiar with Anaplan for its flexibility and scalability, which are ideal for dynamic business environments.
Q43: Describe your experience in reducing cycle time for budget preparation.
What the interviewer wants to test: The interviewer is testing your ability to improve efficiency and streamline processes.
- Process improvement
- Time management
- Analytical skills
In my previous role, I led a project to reduce the budget preparation cycle by 30%. I achieved this by implementing a standardized template and automating data collection using software tools. This not only reduced manual errors but also allowed the finance team to focus on strategic analysis rather than data entry.
Q44: What trends do you see in AI and predictive analytics for forecasting?
What the interviewer wants to test: The interviewer is testing your awareness of current trends in AI and predictive analytics and their impact on finance.
- Understanding of AI in finance
- Knowledge of predictive analytics
- Awareness of industry trends
Current trends in AI and predictive analytics for forecasting include the increased use of machine learning algorithms to enhance accuracy, the integration of big data to refine predictions, and the adoption of real-time analytics to make more dynamic and responsive forecasts.
Q45: How do you ensure data integrity in an integrated budget and forecast system?
What the interviewer wants to test: The interviewer is evaluating your understanding of data management and accuracy in financial systems.
- Validation checks
- Access controls
- Audit trails
Ensuring data integrity involves implementing validation checks to catch errors, setting up strict access controls to prevent unauthorized changes, and maintaining audit trails to track modifications and ensure accountability.
Q46: How do you leverage scenario planning in budgeting and forecasting?
What the interviewer wants to test: The interviewer is evaluating your strategic planning skills and ability to adapt to changing business conditions.
- Strategic planning
- Flexibility
- Analytical skills
I use scenario planning by first identifying key variables that could impact our financial outcomes, such as market trends or regulatory changes. Then, I develop multiple scenarios, including best-case, worst-case, and most-likely scenarios. This allows us to prepare flexible budgets and forecasts that can be quickly adjusted as conditions change, ensuring we remain agile and responsive.
Q47: What role does business intelligence software play in forecasting accuracy?
What the interviewer wants to test: Understanding of business intelligence tools and their impact on financial forecasting.
- Data analysis
- Trend identification
- Predictive accuracy
Business intelligence software enhances forecasting accuracy by analyzing large datasets to identify trends and patterns, providing real-time insights and predictive analytics. This allows companies to make informed decisions based on comprehensive data analysis, thereby improving the precision of their forecasts.
Q48: Describe a time when process improvements significantly enhanced budgeting efficiency and accuracy.
What the interviewer wants to test: The interviewer is assessing your experience with process improvement and its impact on budgeting.
- Process improvement
- Budgeting efficiency
- Accuracy enhancement
In my previous role, I led a project to automate the budgeting process using a new software tool. This eliminated manual data entry errors and reduced the budgeting cycle time by 30%. As a result, the team could focus more on strategic analysis, improving both efficiency and accuracy in our budgeting process.
Q49: How do you design user-friendly budget input templates?
What the interviewer wants to test: The interviewer is testing your ability to create effective and efficient financial tools.
- Understanding user needs
- Ensuring clarity and simplicity
- Incorporating necessary features
To design user-friendly budget input templates, I first gather input from end-users to understand their requirements and challenges. I focus on creating a clear and intuitive layout, using consistent formats and labels to minimize confusion. Additionally, I incorporate essential features like drop-down menus and auto-calculations to streamline data entry and reduce errors.
Q50: How do you benchmark your budgeting process against industry best practices?
What the interviewer wants to test: The interviewer is testing your understanding of benchmarking and your ability to improve processes.
- Understanding of benchmarking
- Knowledge of industry standards
- Process improvement
To benchmark our budgeting process, I start by researching industry reports and analyses to understand standard metrics. I then compare our financial ratios and budget allocations to industry averages. Engaging with industry forums and participating in benchmarking surveys also helps us identify gaps and opportunities for improvement.