Implementation – Monitoring and Evaluation

19.5 Benchmarking

Benchmarking is the process by which the cost of undertaking a discrete activity is compared to the same, or similar activities, in other areas or over time. Benchmarking is an instrument for continuous improvement that to date has been mainly used in the context of the commercial private sector. However, there is no reason why the concept could not be applied to public sector procurement of infrastructure and services for low-income urban communities. A benchmark is a position against which performance can be measured; valuable resources can then be targeted to those areas requiring the greatest improvement. In the context of this Toolkit, the benchmark position is the level of performance of contracts in the delivery of infrastructure and services to low-income urban communities. The idea is to surpass the best level and hence create continuous improvement.

Establishment of a yardstick or benchmarks for contracts in the public sector will make it feasible to monitor the performance of such contracts within a single organisation or between organisations.