Improving through Benchmarking

Abstract

Rising public expectations for higher-quality, more cost-effective services are radically altering the way municipalities deliver utility services. In increasing numbers, many local governments are introducing competition, through private sector contract operation companies, into their water and wastewater utilities. Once foreign to public utility managers, the concepts, behavior, and work practices of a competitive market increasingly are becoming a reality for many municipal water and wastewater utility providers. This article examines the use of competitive benchmarking as a means of assessing and responding to the changing market conditions sweeping the municipal water and wastewater utility industry. An overview of the benchmarking process is presented, and the use of benchmarking is illustrated through an examination of the techniques used to develop a competitive assessment of the Utility Division of the city of Fort Wayne.

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