FAQ Benchmarking

Why should we benchmark?

Most of our information is commercially sensitive - if we benchmark how do we know that information is not accessible by competitors?

Why can't other organisations identify us in the KPI results?

We get our KPI results - what then?

Does doing benchmarking mean that we have to collect another set of data?

Will a change in any food service process be reflected in a KPI?

My manager wants to know why my 'cost per meal' is significantly higher than a similar hospital?

We already calculate 'labour cost per meal', and compare with another hospital. Aren't we already benchmarking?

But we're a contract management company, why ever would we want to participate in external benchmarking?

Why should we benchmark?

It's an objective way of comparing different food services on exactly the same basis, on financial performance, productivity, customer satisfaction and staff growth & learning. Or, as in "internal benchmarking", of comparing with your own performance over a different periods.

Most of our information is commercially sensitive - if we benchmark how do we know that information is not accessible by competitors?

We act as a "trusted third party" in benchmarking and guarantee security of your data. We sign a non-disclosure agreement with you. We abide by guidelines in the International Benchmarking Code of Practice.

Why can't other organisations identify us in the KPI results?

Our system assigns a unique user identifier to each user organisation, for each group of KPI (financial, operating, learning and growth, customer satisfaction). Also, a new set of user identifiers are calculated for each set of benchmarking results, and they are never reused. By having a different user identifier for each KPI group, a user can share KPI from one group, without disclosing their identity in the other KPI groups. Previous and subsequent benchmarking results also remain anonymous. Users always know their own user identifiers. You see everyone else's results but don't know who they belong to. Others see your results but don't know that it's you.

We get our KPI results - what then?

You may wish to find out why another organisation did better than you on a particular KPI. This is the real point of benchmarking - best practice improvement. We can put you touch with other such organisations, providing they agree.

Does doing benchmarking mean that we have to collect another set of data?

Not necessarily. The data you currently collect may be required to calculate a KPI. You may find that some data already collected is not even used. Benchmarking is an opportunity to review all data collected. There must be a strong case for collecting non-KPI data. If the data being collected is considered important, then perhaps a KPI should be derived from the data, perhaps to provide better information.

Will a change in any food service process be reflected in a KPI?

If the KPI are selected carefully this should be the case. Obviously, only significant changes in a process will be reflected in KPI.

My manager wants to know why my 'cost per meal' is significantly higher than a similar hospital?

You can compare cost per meal only when you are sure you're using exactly the same definition of "meal". In food service benchmarking the commonest error is to assume "a meal" means the same thing in different organisations. Unless definitions and data collection methodology are identical, comparisons are meaningless.

We already calculate 'labour cost per meal', and compare with another hospital. Aren't we already benchmarking?

Probably not. Unless the data that's used to derive the 'labour cost per meal' is collected in exactly the same manner, using the same methodology, and both hospitals have a similar profile, then you are not benchmarking. In a structured benchmarking (which is the only true benchmarking), data is collected by completing a 'self assessment form'. The form precisely defines which data should be included or excluded for each question. Data collected is then used in various formulae to calculate each KPI.

But we're a contract management company, why ever would we want to participate in external benchmarking?

How else can you prove you're the best? There's no better way to you can demonstrate to clients and potential clients that your cost per meal is lower, or your productivity is higher, than to compare yourselves on a standard basis. And then be able to say "we were ranked lowest of cost per meal, highest on productivity". If your ranking is not the best, wouldn't you like to know where you should focus improvement efforts?