Performance Assessment and Benchmarking in Article Review

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Wynn-Williams holds that benchmarking should maintain a "central role" within the public sector; it should be modified toward increased attention on what actually needs to be benchmarked, comparing internal units within the organization, displaying best practice, and being of a generic nature. In a situation of no competition, a public organization can benchmark against its mission statement (which reflects the expectations of those to whom the organization is held accountable) and against its history (comparing performance from one quarter to the current quarter).

Wynn-Williams uses PHARMAC to suggest how benchmarking could be used for performance assessment and accountability in a public sector organization. PHARMAC's two main goals are to promote public health and achieve the lowest-cost pharmaceuticals for recipients of their services. In other words, efficiency (maximizing output for given input) is constantly balanced with effectiveness (health outcomes of recipients).

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Benchmarking could be used for this organization by relating each year's processes to those of previous quarters; this would demonstrate the effort the organization is making. Financial reporting (reporting how much cost was saved on pharmaceuticals in a given period), could be combined with how well the public good is served, incorporating improvements compared to previous periods. PHARMAC's sub-unit performance could be compared to similar sub-units in different organizations.

In all, then, Wynn-Williams recommends three guidelines for benchmarking in the public sector: focus on processes, not output; when there are no competitors, focus internally; and become accountable by bringing results of benchmarking activities into the public......

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