Collaborative Benchmarking, Transparency and Performance: Article Review

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An increase in performance and delivery of quality services was noticed only after the benchmarking efforts and results were made available to the public in the 1997 industry-wide benchmarking initiative.

The third hypothesis of Braadbaart's benchmarking study (H3) was that the benchmarking exercises would enhance the utilities' economic performance, but only after the benchmarking results were publicized, shared, and made available to the public. Braadbaart's study confirmed this hypothesis as well. Why might the utilities' economic performance show improvement only after the industry-wide study in public benchmarking that occurred in 1997? It is possible that utility managers at these organizations were not yet accustomed to benchmarking measures and as such could not employ their lessons effectively. Another explanation for the time lag in benchmarking improving performance is that the utility managers only became serious about reform and enhancing performance after the benchmarking information was made available to the public at large.

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Braadbaart's fourth hypothesis (H4) -- that "yardstick regulation" is a necessary element for benchmarking to make a significant impact on an organization's economic performance -- was not confirmed by his study of the Dutch water utility benchmarking exercises. However, this is apparently good news for public sector managers, as they now know that while collaborative benchmarking can increase both transparency and economic performance, "managed competition is no sine qua non-for performance enhancement in the public sector" (p. 690). For scholars and those in academic fields, the fact that Braadbaart's fourth hypothesis was not proven correct suggests that what is necessary is a closer inspection of the length of time it takes public sector organization to adopt benchmarking, and additional examinations of the managed competition and collaborative benchmarking theses......

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