Benchmarking is often used in the public sector as a way of driving up performance. This article explains why benchmarking does not necessarily lead to better performance and why it can generate unwanted consequences. The article recommends ways of improving the link between benchmarking and performance. These involve the design of the benchmarking scheme, the presentation of benchmarking scores, the stakeholders to which these scores will be disclosed, and the actions that will be undertaken as a follow-up.
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Sandra Tillema (2010) studied this question.
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