Benchmarking newsletter
Summary of actions
Measuring business value
After piloting a new survey at one council, we are introducing a new service on benchmarking business value in January to March 2010. Complementary to both our main benchmarking services, this new survey offers CIOs and heads of ICT a unique opportunity to understand how key decision-makers perceive the value that they are getting from ICT and, from that, to create a platform for improved communication, underpinned by realistic and shared expectations.
Making data easier to collect
A spreadsheet template is being developed and will be trialled with participants this year. This will help participants to collect the data required for completing the questionnaire. This spreadsheet will be reviewed alongside other evidence during site visits to increase the amount of monitoring requested by many participants.
Other actions
- Review TCO questions from other benchmarking organisations with a view to developing new benchmarks in the areas identified.
- Continue to develop and refine cost and performance measures for applications and data centres and discuss at workshops.
- Work with clients to develop new measures to capture and compare data in relation to alternative service delivery models.
Comparison with private sector
One question sometimes asked is 'How can we compare ourselves with the best in the private sector?'. Our database of over 250 public sector organisations, mainly local government, might appear not to help. From time to time we hear of a council using a private sector benchmarking provider in order to obtain some answers.
One such case came to our attention late in 2011. Despite this provider's hype of an extensive private and public sector database, our contact only received data about six comparators from finance, industry and retail of a similar size. The analysis showed that the council's service was at least 15% cheaper than the overall average for this benchmark group. This gave the misleading impression that the service was very cost-effective, since we found it to be at around the Socitm median point in terms of cost, when it was measured against our large database of both in-house and outsourced ICT services.
Socitm benchmarking consistently shows that local public sector ICT is 'head and shoulders' more cost-effective than both central government and the private sector.
What's more, our database does help with private sector organisations. Around one in five councils have outsourced their ICT services and this gives a very relevant comparison with the only part of the private sector that matters. And our data regularly shows that outsourced ICT services are generally delivered at higher cost than in-house, although sometimes the performance of outsourced supply is better if the right KPIs are used.
Reasons for benchmarking
Q - What are your main reasons for benchmarking ICT? (please check up to 3 reasons)
Chart 1 - Reasons for benchmarking
Although participants do have several reasons for benchmarking, the top three reasons are quite clear:
- Pointers to service improvement
- Evidence of value-for-money
- Baseline for performance
Under severe financial pressures and faced with major changes from shared services, outsourcing and downsizing, it is no surprise that heads of ICT look to benchmarking for evidence of what might be the best decisions to make and support,
Q - How do you use the results? (check all that apply)
Chart 2 - Use of results
This chart shows that the results are used in variety of ways as essential management information that the organisation requires and as essential operational information to share with those who deliver the service.
Q - What do you see as the most important benefit of benchmarking for your organisation?
Here are some of the observations from respondents.
- Evidence of a commitment to providing a good service It shows that we are serious about improvement. It allows us to compare how we are performing with others but also to learn about other ways of doing things (workshops), Socitm are a respected body that carries some weight.
- We have used the benchmarking service three times in the last nine years and we are very satisfied with the process and the delivery of the results.
- It is most important in times of austerity that satisfaction, value for money and performance are clearly measured using a balanced basket of nationally recognised indicators in a benchmarking arena which includes similar organisations. Baselines can then be seen and where necessary improvement measures can be applied.
- Benchmarking shows that we are serious about improvement, allows us to compare how we are performing with others and helps us learn about other ways of doing things.
- Provides me the confidence that decisions affecting my services and budgets are evidence-based and achievable.
- Corroboration that I run a good VFM service that delivers best value and is better that others
- Benchmarking is a fundamental component of our continuous improvement process.
- I can compare my team against others in the country and learn from the experience in terms of improvement and efficiency.
.. and for those with outsourced services
We have an outsourced provider for ICT and so benchmarking enables us to ensure that we are getting value-for-money and 'best practice' performance levels.
We are in a long-term ICT contract and benchmarking gives elected members confidence that value for money is being secured
Value of Socitm service
Q - What features of the Socitm benchmarking service do you value? (check all that apply)
Chart 3 - Features of Socitm service
Q - What additional services would you like? (check all that apply)
Chart 4 - Additional services
Here are some further suggestions for improving the service.
- I feel the key would be standardised spreadsheets and checklists for providing the information. Having contacted other authorities about how they calculate support for workstations for example, there is varying practice
- I would like to be able to benchmark a wider set of infrastructure components e.g data centre / servers, but accept the complexity of doing this. There is a need to review current model in light of significant industry emerging trends - shared service / cloud (Iaas,Saas,Paas).
Views from policy-makers
As the chart above shows, benchmarking data is used in a variety of ways within the organisation. However, when seen as part of an extensive dataset for the sector as a whole, it has significant added value. During 2011 the value of our benchmarking data received a natIonal profile on two occasions.
Socitm in House of Commons
Firstly, it enabled Socitm to provide valuable evidence to the House of Commons
It is widely accepted that 3% is a benchmark of good practice in the private sector service industries for ICT spend as a percentage of total revenue expenditure.
Socitm benchmarking ....... demonstrate(s) that local government organisations spend consistently less than 3% on ICT... the average ..........in central government departments is at least 5%
Source: Socitm evidence to the Public Administration Committee (May 2011)
Socitm in Scotland
Secondly, in Scotland the McClelland Review emphasised the importance of benchmarking as an essential management tool, especially in the preparation for shared services that the report champions. Indeed, it singled out Socitm's expert contribution in this activity.
An outstanding example of this (external comparison and benchmarking) comes from the Society of Information Technology Management (Socitm) which is adept at developing and conducting benchmarking exercises within the local authority sector within the UK. These have produced valuable information.
Review of ICT Infrastructure in the Public Sector in Scotland by John F McClelland CBE (June 2011)
Thanks ...
The benchmarking team would like to thank all those who gave their time to complete the survey
Steve Hopson, Anna Hooper and Martin Greenwood
Benchmarking the ICT service in 2012
| Milestone | London |
Across the UK |
|---|---|---|
| Full briefing pack to your survey co-ordinator | 12 April | 11 June |
| Launch workshop | 19 April | 19 June (venue tba) |
| Deadline for return of questionnaires | 8 June | 27 July |
| Draft version of report | 27 August | 1 October |
| Results discussed at workshop | 5 September | 9 October (venue tba) |
| Milestone |
Scotland |
|---|---|
| Full briefing pack to your survey co-ordinator | 21 August |
| Launch workshop | 28 August (Stirling) |
| Deadline for return of questionnaires | 28 September |
| Draft version of report | 15 November |
| Results discussed at workshop | 22 November (Stirling) |
Contact:
Benchmarking the ICT service - stephen.hopson@socitm.net
Tel 07837 251337
Benchmarking user satisfaction in 2012
| Milestone |
Series 40 (Spring) |
Series 41 (Autumn) |
|---|---|---|
| Start of registration | 1 December 2011 | 1 August |
| Start of earliest survey | 3 January | 27 August |
| Close of registration | 1 March | 19 October |
| Close of survey | 22 March | 16 November |
| Issue of results | 10 April | 28 November |
| Results workshop | 17 April (venue tba) | 4 December (venue tba) |
| Summary for 2012 (from Socitm Insight) | April 2013 | April 2013 |
Contact:
Benchmarking user satisfaction - terry.madgwick@socitm.net
Tel: 01483 855288
Socitm Insight - the latest publications
Don't forget that you can always find the latest Socitm Insight information on www.socitm.net. You will receive an e-mail alert when reports are available in the online library. For most reports you will receive one printed copy, but can always order more within your entitlement. Printed copies might take another three weeks to reach you.
Commissioned research
Socitm Insight has completed a number of special commissions of research into a wide variety of topics. Whether you are a local public service, government department or supplier, we may be able to help you find valuable information requiring independent expertise.Feedback of your views
Do use www.socitm.net/feedback to give us your comments about any of our services or recent publications you have read or the ones that we are planning.
