A Benchmarking Model for Measuring the Efficiency of a Humanitarian Aid Program: A Case Study of an International NGO

Abstract

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.