Benchmarking in healthcare: evaluating data and transforming it into action.

After the benchmarking team has accumulated data for the development of comparisons, it must be validated for completeness and consistency. Various factors can skew the analysis and should be watched: Subjective interpretations of survey questions. Lack of common definitions. Composition of input data. External factors and extraordinary events. After verifying consistency of data gathered from benchmarking partners, calculate appropriate statistics for the performance metric. Typical data tabulations are: mean, median, ratio, minimum and maximum value, normal operating range, standard deviation and correlation coefficient. Statistics derived from the data produce the benchmark against which you will measure your institution's performance. Gap analysis establishes the difference between your internal operation's performance and that of the benchmark. Information developed from properly collected data will help you determine reasons for the gap between your performance and the benchmark and project future trends. The next step is to develop an action plan based on what has been learned from benchmarking and targeted to improving performance in areas that further the strategic goals of the institution. In addition to determining performance goals, you must analyze the decision-making process involved in making changes that will move you toward those goals. Since the goal of benchmarking is to improve the organization, the team must present its analysis to those members of management who can approve an action plan. Changes resulting from benchmarking can range from incremental improvement of existing practices all the way to reenginering. Action plans are designed to effect change at levels that will vary according to the goals that have been set. The more incremental the change, the easier the implementation. The more radical the change, the greater the reward.