Benchmarking for results: how to design a program that works

Reduced operating costs and improved customer service sound like corporate goals touted by private sector CEOs; however, it is increasingly expected that governments will manage themselves with these outcomes in mind. A well-planned benchmarking program can help local governments streamline their processes, realign their organizational structure, and create a culture that will help them reduce costs and improve services. This article will discuss the benchmarking lifecycle and key best practices that your organization should implement in each stage.

Define the purpose of the benchmarking program

Starting the benchmarking process without defining the purpose of your program is comparable to shooting before you aim; chances are slim that you will hit your mark. Governments must clearly define what they are aiming to achieve with benchmarking before they move into the preparation and data collection phase. For example, the scenarios listed below all require vastly different approaches:

• You want high-level benchmarks to help you identify “problem” areas in your organization
• You think one of your departments is not completing projects because they are understaffed, and you want benchmarks to justify adding personnel
• You receive complaints from departments that the contract administration process within your organization is too slow and confusing, and you want to determine best practices and potential process improvements in this area
• You think the outsourced custodial company you use is charging you too much, but you need data to make your case

The examples differ in the depth of benchmarking required, data collection requirements (internal and external), and benchmarking partner(s) that should be used. It is important that the purpose of the benchmarking program is clear so that the inputs are applicable and the outcomes add value to your organization.

Preparation and internal data collection

Depending on the depth of your benchmarking program, you will need a considerable amount of data for the areas you want to study. Once you have decided on the purpose of your benchmarking program, you will need to start collecting internal data that you will use to compare yourself to others.