12. Project Follow-Up by Benchmarking

Benchmarking is a follow-up evaluation tool that compares the cost structure of facilities with that of a given reference, the benchmark or yardstick. What is assessed is not a policy per se, but the facilities in charge of implementing it (Sect. 12.1). The method is applicable to any public service operating within a multiple-input multiple-output setting and equipped with a cost accounting system (Sect. 12.2). As the demand for a set of services plays a determinant role in explaining the average cost of a facility, the first step is to delineate the effects of the demand structure on cost (Sect. 12.3). Benchmarking also assesses whether an extra cost observed in one facility is due to price effects or to the allocation of inputs among services (Sect. 12.4). The stakeholders of the public project may also wish to get alternative or complementary information on the role each input plays within the production structure. A simple reorganization of the data allows it (Sect. 12.5). Last, the method can be used to motivate operations improvement or to help a decision-maker understand where the performance falls in comparison to others (Sect. 12.6).