3. Best practice for benchmarking and market testing

3.1 There are three key stages to either a benchmarking or market testing process which are noted below along with a summary of the main activities/features of each stage:

Planning the process:

Plan early

Ensure appropriate resources - especially professional advice, dedicated technical resource and senior time

Plan for the negotiating strategy

Review the requirements

Develop a project plan

Clarify roles

Agree methodology

Agree cost of services to be benchmarked/market tested

Maintain good communications

Establish governance structure

Managing the process:

Agree benchmark sources

Validate the data

Use expert advice

Clarify and negotiate

Ensure transparency and openness

Develop clear evaluation criteria

Maintain good communications

Managing the outcome:

Implement the outcome

Amend the service specifications

Adjust the unitary payment

Inform users

Consult and inform staff

Check the interface arrangements

Document the process

Learn the lessons

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