1. Taking Benchmarking and Performance Measurement Forward Martin Walker - Assistant Director Best Value & Scrutiny Improvement Group - Audit Scotland Local Government and Regeneration Committee Seminar: 10 th September 2012

2. 2Taking Benchmarking & Performance Measurement Forward Proposed areas for discussion Benchmarking and performance measurement – an auditors perspective Key messages in audit reports Making performance measures and benchmarking work – common issues and practical considerations 10 Sept 2012

3. 3Taking Benchmarking & Performance Measurement Forward Benchmarking and performance measurement – an auditors perspective Audit work is evidence based – performance measures and benchmarking provides a source Used in all areas of audit work Annual audit BV audits National performance audits SPIs CPP audits Shared risk assessment We recognise that performance is political 10 Sept 2012

4. 4Taking Benchmarking & Performance Measurement Forward Benchmarking and performance measurement – an auditors perspective The types of performance measures we might look for The comparisons we look for: Performance against targets Performance over time Performance compared to others Combinations of measures e.g. VFM 10 Sept 2012 Input Measures Process Measures Output measures Outcome Measures

5. 5Taking Benchmarking & Performance Measurement Forward Benchmarking and performance measurement – an auditors perspective Most importantly we are looking for what the measures tell us about : Response/ activity – has an organisation acted on what the benchmarking is telling them? Impact – what difference has the response had on service performance and outcomes? 10 Sept 2012

6. 6Taking Benchmarking & Performance Measurement Forward Common issues in audit reports Performance information/ performance management frameworks still developing and variable Between councils Within councils Lack of comparative data to inform scrutiny Link between performance information, activity and impact 10 Sept 2012

7. 7Taking Benchmarking & Performance Measurement Forward Also positive examples 10 Sept 2012

8. 8Taking Benchmarking & Performance Measurement Forward Our audit work tells us that it’s important..… To select measures which reflect priorities To ensure there are a range of measures (inputs, process, outputs, outcomes) and use them in combination To remember that performance measures are for performance management i.e. taking action Scrutiny and accountability Improvement Be wary of the quest for the ‘perfect measure’ 10 Sept 2012

9. 9Taking Benchmarking & Performance Measurement Forward Observations Benchmarking is a means to an end not and end in itself Benchmarking performance measures identifies Issues Questions Benchmarking can also provide: Solutions Answers Other types of benchmarking can help with this (strategic, functional, process) Benchmarking tends to work best when there is an infrastructure in place 10 Sept 2012

10. 10Taking Benchmarking Performance Measurement and Forward A scenario 10 Sept 2012  people consider what data is available that could be compared  agonise over who to benchmark with – in a quest for benchmarking partners who are “like them”  spend a great deal of time and effort collecting the data  collate data in many spread-sheets with benchmarking partners  identify discrepancies  have the “apples with oranges” discussion and agree to go away to revise the data in line with agreed standards  return to find there are still differences  report back to their own Council ( though not always ), noting the differences but stressing that “they’re not the same as us, so it’s not comparing like with like”  find the whole exercise time consuming and without major benefits and remain cautious about future exercises

11. 11Taking Benchmarking & Performance Measurement Forward Some points of reference 10 Sept 2012

12. 12 Questions & Discussion Taking Benchmarking & Performance Measurement Forward 10 Sept 2012 Contact details: Martin Walker Assistant Director– Audit Scotland Phone: 0131 625 1813 E-mail: mwalker@audit-scotland.gov.uk