A Benchmarking Model for Measuring the Efficiency of a Humanitarian Aid Program: A Case Study of an International NGO
11 Pages Posted: 24 Oct 2008 Last revised: 26 Aug 2013
Date Written: October 22, 2008
This article presents a benchmarking model for measuring the efficiency of organizations that provide humanitarian aid. The model was developed and implemented in the framework of a large international aid program. The model is based on measuring the labor productivity of each organization that provides services and comparing it to the benchmark. Two main results came out from the estimation of the model: (a) there were positive economies of scale in the program meaning that larger organizations were inherently more efficient than smaller ones; (b) the source of the inefficiency was identified, not in the administrative part of the organization, but rather in the programmatic part.
This article is now part of my new book: Measuring the things that count: Quantitative methods for the management of nonprofits. LAP Lambert Academic Publishing (January 25, 2010)
Keywords: Efficiency, Productivity, NGOs, Humanitarian Aid
JEL Classification: L31, I38
Suggested Citation: Suggested Citation