7 Benefits of Benchmarking for Local Governments


Benefits of Benchmarking

Everyone benchmarks in one way or another in our personal lives. As an avid golfer, I hold an 8 handicap. On good days, I play to my handicap but on the not-so-good days, I struggle to break 90. Maintaining a golf handicap - benchmarking - helps me understand how I'm performing and what progress I'm making in my game. It also allows me to compete with golfers of differing abilities on a level playing field.

Benchmarking is a particularly hot topic in local government. We recently ran a webinar entitled “Benchmarking for Success” which was attended by over 50 local governments across the continent.

In demonstrating their commitment to the practice of Benchmarking, the International City/County Management Association (ICMA) is finalizing their list of 80 or so key performance measures that will form the National Standard and the main network in govBenchmark.

Local governments can benefit significantly from the insights that benchmarking provides. From benchmarking one’s own performance measures over time to see where progress is being made, to peer comparisons with similar jurisdictions, local governments can build the operational capacity that benefits their communities.

If you are considering using benchmarking to improve your performance, here are 7 key benefits that you should be aware of:

1. Compare Your Performance

Local governments that participate in a benchmarking network each provide one another with valuable comparative data. Using up-to-date visuals, benchmarking provides clear visibility into any performance area. You can immediately see your performance in any given service area within the context of selected peer groups who are tracking the same measures.

2. Analyze Your Performance Over Time

Benchmarking is an extremely effective tool for the observation, analysis and reporting of performance over a given time frame. Benchmarks help local governments to establish the key performance drivers for their strategic plan and set realistic objectives for themselves that will define the future. Once a benchmark is established it can be tracked for consistency over time providing a key resource for evidence-based decision-making, resource allocations and promoting continuous improvement.

3. Identify Areas for Improvement

Benchmarking also helps local governments to identify areas for improvement. By seeing the performance results of peer communities you may discover that there are distinct service areas where your government is under-performing. Benchmarking allows you to compare your performance against that of peers to gain a better understanding of the path to achieving better results. You may even identify potential solutions based on the strategies employed by high performers within your peer group. 

4. Celebrate Your Strengths

Benchmarking provides local governments with clear insights into their strengths relative to selected peer groups. Let’s say that your fire response times are in the 90th percentile compared to the the national average and your council has earmarked two million dollars in the next budget for new fire engines. Guess what, you may just have found an additional two millions dollars to fund other more important initiatives. By examining your performance in the context of the performance of others and over time, it becomes much easier to identify your strengths and areas for improvement to assist with budget allocation and strategic planning.

5. Collaborate with Other Cities

Being part of a network of other local governments that compare performance data brings considerable value to your operations. These networks allow members to share knowledge, best practices, gain experience and learn from one another. It raises the bar for everyone. National benchmarking networks demonstrate the value of collaboration -- encouraging openness and transparency within and across neighbouring local governments.

6. Keep Up with Current Trends

Understanding trends within and across different local government is invaluable for local governments that strive to elevate their performance and improve the quality of life for their communities. Benchmarking against other relevant local governments provides a window to new opportunities and innovations, providing insight into the value of new trends.

7. Rebuild Trust in Government

Participating in a government benchmarking network signals to your council and community that continuous improvement and innovation are top priorities. Benchmarking shows that you are willing to be open and transparent with your performance results to discover newer and better ways to get the job done. Local governments who benchmark are dynamic, they are tracking their progress, identifying what works and what doesn't, using evidence based on data to make decisions and uncovering innovative ways to elevate their performance for the benefit of all. Benchmarking provides the vital information that may lead to a mid-course adjustment, the termination of a program that had no value or the reframing of a difficult discussion with council that ultimately puts scarce resources where they are needed most.

Envisio presents: govBenchmark

Here at Envisio, we understand the value of benchmarking for local governments to improve their performance, gain a strategic advantage, and build trust with councils and communities. In that spirit we are excited to introduce govBenchmark, a Comparative Performance Management software for local governments to track, compare, and report results with their peers. Schedule a free demo to see what govBenchmark can do for your organization!

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