1.6 The contract requires SBS to undertake a programme of benchmarking. The Committee of Public Accounts' report5 on the partnership noted that it was important in long-term contracts for performance and costs to be measured regularly against the market to maintain pressure for value for money. As other Government departments had previously told the committee that benchmarking was difficult to implement it asked NS&I to share its experience with other departments.
1.7 SBS, with support from NS&I, has carried out a number of benchmarking projects since the partnership began as detailed in Appendix 3. SBS has compared aspects of NS&I's business, such as its call centre and its automated processes, with organisations considered to be at the leading edge in their areas of service provision. SBS and NS&I fared well against such benchmarks, which also identified further areas for improvement within NS&I's operations.
1.8 For example, the benchmarking of automated processes identified that fewer processes were used in NS&I's operations than in comparator organisations. SBS concluded that more automated processes would increase operational efficiency, and reduce error rates and rectification costs, and is starting to take appropriate action. The contract recognises that benchmarking may result in reductions to the Unitary Payment and/or, increases in the standard of performance required from SBS. To date benchmarking has not allowed NS&I to add value to the business by achieving either of these outcomes. In some instances, however, such as the handling of complaints, the benchmarking findings have resulted in improved customer service. SBS needs to continue with benchmarking activity, which NS&I should closely monitor and support, to ensure it leads to lower operational costs and improvements in service delivery.
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