Would you like to know how your institution's resources are being utilised? Is it working efficiently? Where might there be over- or under-resourcing? A benchmark analysis can provide helpful insights to answer these questions.
The comparison of quantitative information such as personnel or financial resources and the use of objectifying data can create a sound basis for optimising the use and allocation of resources. A simple comparison of figures that cannot be interpreted is not very meaningful. Rather, a qualified benchmark analysis requires contextualisation of the individual pieces of information. Scaling with other data, such as attendance and production figures for theatres, temporary exhibitions for museums or event figures for venues, is therefore essential. A benchmark analysis enables institutions to evaluate their performance in comparison with others and to understand where they stand. It makes it possible to categorise quantity structures and provides valuable information on possible inefficiencies or deficits. Of course, there are also limitations to this method of analysis: one of the biggest challenges is the comparability of institutions. This applies in particular to the cultural sector, as the personnel and material resource requirements in almost all areas are inextricably linked to the artistic and content-related concept and orientation. In addition, structural differences in the organisation can only be taken into account to a limited extent. The breadth of the database is also relevant, as the less comparable benchmark data is available, the more susceptible the analysis is to outliers. Overall, the more comparable the institutions and the broader the database, the more meaningful and precise the results will be.
In addition, qualitative data is difficult to capture in quantitative analyses - e.g. differences in the quality of staff, which are influenced by staff qualifications, the location of the institution and remuneration. External influences such as market and environmental dynamics also play a role, which often cannot be depicted in quantitative comparisons. An in-depth consideration of these qualitative aspects can therefore provide added value in a benchmark analysis based on quantitative data and serve to contextualise the results of the analysis.
Despite its limitations, the benchmark analysis remains a very useful tool for categorising oneself in comparison to other institutions. Valuable insights can be gained through benchmarking, which help to introduce targeted improvement measures and increase efficiency and effectiveness. The benchmark analysis thus provides a basis for strategic decisions and can help to sustainably improve the position of your institution.
As part of the organisational analysis for the Museum Foundation for Post and Telecommunications, for example, this tool was used to determine staffing levels for future operations and identify earnings potential.
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A contribution by Michaela Herrmann, Consulting