Benchmarking (from Municipal Benchmarks, David N. Ammons, Thousand Oaks, CA: Sage Publications, 2001)

1. Benchmarking is a tool used by local governments for performance measurement and monitoring.

Distinguish between simple comparisons and full-fledged, corporate-style benchmarking.

Analysis of performance gaps between one’s own organization and best-in-class performers
Identification of process differences that account for the gap
Adaptation of key processes for implementation in one’s own organization in an effort to close the gap

Reactive (speed/skill in responding to problems) vs. proactive (anticipating problems so they don’t occur) management
Aggregate statistics as camouflage
Unaudited data (inconsistent definitions)
Time frame differences

2. Why Measure Performance? Means for keeping score on how various operations are doing.

§ Accountability

§ Planning/Budgeting

§ Operational Improvement

§ Program Evaluation/Management-by-Objectives/Performance Appraisal

§ Reallocation of Resources

§ Directing Operations/Contract Monitoring

3. Types of Performance Measures

Workload (output) measures (amount of work performed/amount of service received)
Efficiency measures (relationship between work performed and resources used to perform it; e.g., unit cost)
Effectiveness (outcomes) measures (degree to which performance objectives are achieved)
Productivity measures (combines effectiveness and efficiency in single indicator; e.g., unit cost per effective work/service performed)

4. Criteria for Performance Measures

5. Sources of Performance Data

6. Resistance of Performance Measurement

Supervisors threatened by vulnerability to accusations of poor performance
Reliance on political negotiations over data-driven decisions
Frontline employees and supervisors not consulted on choice of measures and fairness of measurement
Common complaints:

Usually, office characterized by nonroutine work and no data collection system
Ask, “If your office were closed for a few weeks, you would be missed. Who would suffer the greatest impact, and what aspects of your work would be missed the most?”

Like the logger, faced with a stack of uncut logs, felt he could not take the time to sharpen his dull saw.
Demonstrate how the measures will lead to improved services, more efficient services, or more equitable services.

7. Developing a Performance Measurement and Monitoring System

Secure management commitment
Assign responsibility for coordinating efforts to develop sets of performance measures
Select departments/activities/functions for development of performance measures
Identify goals & objectives
Design measures that reflect performance relevant to objectives

Emphasize service quality and outcomes (rather than inputs or workload)
Include no more measures than necessary
Solicit rank-and-file as well as management input/endorsements
Identify the work unit’s customers and emphasize delivery of services to them.
Consider periodic surveys of citizens, service recipients, or users of selected facilties
Include effectiveness and efficiency measures

Determine desired frequency of performance reporting
Assign departmental responsibility for data collection and reporting
Assign centralized responsibility for data receipt, monitoring, and feedback
Audit performance data periodically
Ensure that analysis of performance measures incorporates a suitable basis of comparison
Ensure a meaningful connection between performance measurement system and important decision processes
Continually refine performance measures, balancing need for refinement with the need for constancy in examining trends.
Incorporate selected measures into public information reporting.

8. Benchmarking

Compare to same measure in previous reporting period
Compare to different units in same jurisdiction providing similar services
Rarely, can use performance data from other jurisdictions, national, state, or private-sector organizations

9. Examples