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Local Government and Regeneration Committee Seminar: 10 th September 2012

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. Proposed areas for discussion.

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Local Government and Regeneration Committee Seminar: 10 th September 2012

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

  2. 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 Taking Benchmarking & Performance Measurement Forward

  3. 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 Taking Benchmarking & Performance Measurement Forward

  4. 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 Outcome Measures Output measures Input Measures Process Measures Taking Benchmarking & Performance Measurement Forward

  5. 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? Taking Benchmarking & Performance Measurement Forward

  6. 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 Taking Benchmarking & Performance Measurement Forward

  7. Also positive examples Taking Benchmarking & Performance Measurement Forward

  8. 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’ Taking Benchmarking & Performance Measurement Forward

  9. 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 Taking Benchmarking & Performance Measurement Forward

  10. A scenario • 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 Taking Benchmarking Performance Measurement and Forward

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

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

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