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ACCA Strategic Professional · Strategic Business Leader · Enabling success: performance excellence

Calder Hospital Trust compares its patient waiting times with those of other hospitals using published league tables, then sets a target to match the median. A governance adviser warns that this approach may hold back performance excellence. What is the strongest reason for this warning?

The strongest reason is that aiming for the median only matches average performance and may breed complacency, rather than driving continuous improvement toward best practice. Benchmarking is widely used in the public sector and can cover non-financial measures such as waiting times; the issue is the target chosen.

  1. APublished data can never be relied on for any comparison
  2. BMatching the median only closes a gap to average performance and may encourage complacency rather than continuous improvement toward best practiceCorrect
  3. CBenchmarking is prohibited in public sector organisations
  4. DWaiting times are a financial measure and cannot be benchmarked

Explanation

Targeting the median means aiming for average performance, which does not drive the pursuit of best practice or ongoing improvement. Benchmarking in the public sector is common and non-financial measures such as waiting times can be benchmarked. The statement that published data is never reliable is too extreme.

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