Issue - September 2006

Governments keen on benchmarking

Toronto—Governments at all levels are increasingly using benchmarking strategies to improve operational performance, according to a global study released by consulting firm, Accenture.
Called "Assessment of Benchmarking Within Government," the report was based on a survey of 230 government executives in 10 countries, including Canada. More than half of respondents (57 per cent) said they view benchmarking as "very important," and nearly 73 per cent said they currently use it.
Benchmarking—which compares efficiency of a process from one organization to another—has traditionally been used by the private sector to improve finance, payroll, procurement and supply chain operations and information technology. According to the study, 51 per cent of respondents said they improved efficiency as a result of benchmarking.
"By integrating benchmarking activities into planning and budgeting processes, governments can often achieve better results from existing funds and resources, providing an opportunity to redirect resources to improve citizen-facing services," said Mark Howard, global program director for the finance and performance management service line with Accenture's government practice.
Though the strategy is becoming more popular in the public sector, the survey showed there's room for improvement, with just 22 per cent ranking themselves as “very effective” at benchmarking.