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Benchmarking : What is it?
Dr. Clive GracePresentation to the
Local Government and Regeneration Committee in relation to Strand 2 of its Inquiry into
Public Services Reform
Scottish Parliament 10th September 2012
Benchmarking
What it is & why it matters Varieties & Scope Purposes Issues Theories of Change and Improvement Politics, Politicians, and Benchmarking An arrow not a silver bullet Be systematic but not one ‘system’
What it is and why local performance matters
Comparison of services against an external standard
Matters because: Cost and scale of services Vertical fiscal imbalance Public aversion to ‘postcode lottery’ Local representation and service delivery without (much) local
taxation
What is benchmarked? Services Corporate capacity Inputs, outputs, or outcomes
How are the benchmarks set? Financial benchmarks for economy Productivity benchmarks for efficiency Innovation benchmarks for excellence
Who does it? Self regulation Sector led regulation External agency
Taxonomy of Benchmarking
Variety and Scope
Benchmarking is ubiquitous Service cost and technical comparison (APSE, CIPFA, WAO
Benchmarking Clubs) Statutory performance indicators Whole authority & Whole area assessments Excellence schemes Peer review and challenge ‘Communities of practice’ Improvement Plans? Outcome Agreements? BVA1 and 2?
Purposes
Economy
Efficiency
Effectiveness
Excellence....
....Evasion?
....Austerity?
Issues Definitions and units for comparison (Very little comparison of public services between
England, Scotland and Wales) Data validity and consistency Time series Authoritative interpretation Action in response Context of Public Service Reform approach and
operating ‘Theory of Improvement’
Theories of change and improvement
Example:
Aim Drive from ‘Awful to Adequate’
Funding Large real terms increases
Focus Corporate capacity and national standards
Method Balanced scorecard
Motivation External stimulus, naming and shaming, terror and targets
Alternatives: self actuated improvement; consumer/user pressure; political accountability; etc
Example: PSR Approach and Theory of Improvement
Best Value PIs
200+ indicators for all frontline and corporate services 287 pages of guidance Set centrally after consultation Operated by the Audit Commission Superseded in 2006 by a more outcome focussed
national indicator set
CPA – single and upper tier
Comprehensive Area Assessment
Joint inspectorate assessment for each area
Individual ‘use of resources’ judgements for councils, police, health, fire and rescue authorities
Local performance against the national indicator set
Risk assessment linked to local area agreements
Peer review
Aim Improvement from within
Funding Getting tighter (£20,000 per review)
Focus EFQM model with 12 criteria (incl. corporateeffectiveness)
Method Mixed review teams
Motivation Support and ownership
Risk regulatory regimes
Control components
Information gathering
Standard setting
Behaviour modification
Context Type of risk
Public attitudes
Organised interests
Content Size
Structure
Style
Politics, Politicians, and Benchmarking
A marriage made in both heaven and hell? Critical political accountability.... ...problematic political time horizons and
public opinion drivers Great benchmarking requires tremendous
political self-discipline
An arrow not a silver bullet
Benchmarking is one arrow in the quiver, and not THE answer....
...it is best applied from the ‘improvement end of the telescope’...
....in the context of a thought through policy of Public Service Reform and Improvement...
...and (ideally) a fair degree of political consensus... ...and the support of key stakeholders
Be systematic but do not impose one ‘system’
Working out and carefully designing the benchmarking approach does not guarantee success...
...but not doing so guarantees failure Not ‘one benchmarking system fits all’.... ....different services in different situations call for
different benchmarking solutions
10TH SEPTEMBER 2012