Targets for Transition/Transformation States - In a more stable or advanced setting, how should performance targets be set, and how can performance be monitored when there is relatively limited data availability and/or the quality of the data is uncertain? This article provides those of you responsible for Change Management with a suggested set of Key Performance Indicators (KPIs) that you can utilize. Using KPIs: an Example. Additionally, yardstick comparisons (through benchmarking) help identify strong and weak performance by operators, or by geographic divisions of a national utility. Case of Zambia: The publication of data on individual utility performance relative to KPIs of other utilities has served as a major element in Zambia’s regulatory system. Statements of cash flows (money received and money outflows for a period of time). (http://addisstandard.com/ethiopia-splits-state-owned-giant-public-utility-into-two/), Transformation Stage: Case of Rwanda: The Energy Sector Strategic Plan for Rwanda includes a large section on monitoring and evaluation, whereby an energy-sector working group and a number of other stakeholders provide opportunities for collaboration and cooperation. In particular, domestic politics can limit the effectiveness of regulatory institutions. What is KPI in project management? For example, focusing on reducing the number of staff per thousand customers could lead to a number of inefficient outcomes: Cases: How Data Collection Helps Decision-makers Set Targets and Design Incentives. Prepare follow-up studies as part of the performance review: Benchmarking via. Both the operator and the regulator have the shared objective of improving sector performance, so a collaborative process involving key stakeholders is essential for a successful benchmarking initiative. Create a focal point for institutional reform: When both operations and oversight are part of the same organization (whether a ministry or municipality), pressure for strong performance is unlikely because reforms represent a public admission that past procedures were inadequate (at best) or corrupt (at worst). Use KPI Library to search for Key Performance Indicators by process and industry, ask help or advice, and read articles written by independent experts. To be credible, the resulting reports should not claim to have greater precision than can be documented. The following elements were utilized in the ranking scheme: Safety and Comfort: Random checks on vehicles for a number of components, including sound tires, fire extinguishers, functioning of all vehicle lights, phone number displayed for emergencies, cleanliness in the vehicle, and condition of seats. Promoting investments—How can regulatory incentives be introduced to promote investment? No matter how inefficient current sector performance is, someone (or a group) is benefiting from them; change is never painless. It is the way to track and manage the goals of a project through the definition and measurement of its. Systematic evaluation of performance is at the core of their current initiatives, with regular comparisons of actual outcomes to expected outcomes (targets). Coverage—How can regulators establish incentives for service expansion? This is sometimes called “naming and shaming,” but is more appropriately identified as public reports on infrastructure performance. Berg, S., “Advances in Benchmarking to Improve Water Utility Operations,” Water Policy, 2012. Zambia’s water regulator, National Water Supply and Sanitation Council (NWASCO), makes its annual sector reports available on the web on a timely basis. [, Water is continuously available, with few supply interruptions of limited duration. Transparency also requires political will, which is difficult to achieve in FCSs. “Possibilities and Limits of Urban Water Utilities in Africa Serving the Poor” (World Bank, forthcoming), KPIs for Transition/Transformation States – What are the Key Performance Indicators (KPIs) for evaluating sector performance and how can they be used effectively by regulators? The following cases illustrate activity around the world in this area. Promote citizen awareness: One way to educate the citizenry about actual performance levels (and to limit the impact of political rhetoric) is through greater transparency. When you manage your team with KPIs, you are able to use a TV dashboard to display data in your office all the time, or if you prefer, cut down on the hours spent creating a slide presentation for your weekly meeting, and … NWASCO collects a wide range of KPIs and has developed weights to be used for an overall performance score, with particular attention given to data quality. http://www.adb.org/sites/default/files/publication/30358/ki2013.pdf, http://adb.org/sites/default/files/projdocs/2009/38560-CAM-RRP.pdf, http://www.ppwsa.com.kh/en/index.php?page=sharingthereformprocess, http://addisstandard.com/ethiopia-splits-state-owned-giant-public-utility-into-two/, http://www.minecofin.gov.rw/fileadmin/templates/documents/sector_strategic_plan/Energy_SSP_June_2013.pdf, http://www.nwasco.org.zm/jdownloads/Publications/Urban%20and%20Peri-Urban%20WSS%20Sector%20Reports/sector_report_2014.pdf, http://www.slideshare.net/ircuser/2-ssozi-uganda, https://www.nwsc.co.ug/index.php/about-us/ourprofile, http://www.wwro-ks.org/English/Publications/AnnualPerfor/RAPORTI_I_PERFORMANCES_2014_ENG.pdf. Looking for good KPI examples? This transition is important because reactive work costs four-six times more than planned and scheduled work. Transition Stage: Case of Cambodia Water: KPIs for rural water are identified in an ADB report that includes key lessons from recent initiatives and areas for improved coordination and capacity building in rural water in Cambodia: http://adb.org/sites/default/files/projdocs/2009/38560-CAM-RRP.pdf. --   Sitemap. Perform data analyses: This crucial stage involves the application of methodologies appropriate for answering key questions. This FAQ should be read in conjunction with the related FAQ on nations in Crisis and in the Rebuild and Reform Stage. Similarly, regulators need the professional support that enables them to characterize the financial sustainability of current operations: http://regulationbodyofknowledge.org/financial-analysis/. The following figure, from the author’s Water Utility Benchmarking: Measurement, Methodologies and Performance Incentives, indicates the steps for starting a data-collection process for evaluating infrastructure performance—especially as applied to larger operators. (For nations that are in the Transition and Transformation stages). Typically is expressed in term… Operating statistics (number of workers, number of customers, reliability, service quality, etc.). Currently, Ethiopia is the biggest power exporter in the Horn of Africa and is aiming to be one of the continent’s biggest exporters upon completion of the construction of several ongoing hydropower projects. Read the story behind Itransition’s KPI software development project to automate a major Oil & Gas company’s performance tracking and reporting. Gather raw data for yardstick comparisons: This stage involves the selection of the appropriate comparison group of companies or standards. Establishing what these should be for your organization doesn’t mean that you necessarily have to get creative and reinvent the wheel. The vendor management KPIs that matter most to your business may not be the same as those prioritized by your competition. (For nations that are in the Transition and Transformation stages), the related FAQ on nations in Crisis and in the Rebuild and Reform Stage, http://regulationbodyofknowledge.org/financial-analysis/. The task force defined the criteria in conjunction with public transport operators and collected data. Processes need to be in place to ensure that emergency changes are kept to a minimum and that any technical changes that are made do not negatively impact on IT users. Furthermore, one person cannot do everything. Well, as is often the case, it depends. Similarly, comprehensive approaches are required for energy, transport and telecommunications. More often than not, they are accompanied with a threshold or target and enable accurate measurement of organizational performance. Unless current management information systems are thoroughly flawed, data collection should draw upon existing definitions and procedures, with the goal of improving procedures. CSFs . For example, for the water sector, operators of water tankers serving areas that are not part of a water network are likely to oppose network expansion in the beginning. ITIL KPIs Project Management (Transition Planning and Support) Key Performance Indicator (KPI) Definition Number of Projects Number of major release rollouts under the control of Project Management; Percentage of Projects with Project Charters This FAQ focuses only on KPIs and basic performance benchmarking, but more technical quantitative methods are applied in many regulatory jurisdictions. Of course, all of this is contingent upon there being the political will to engage in such an initiative. ITIL® Process Map & ITIL® Wiki | Join us! Allocate leadership responsibilities: Within the guiding coalition, there needs to be agreement regarding which members will serve as external spokespersons for the group. Before the KPI initiative, many operators were providing public transportation with cars and buses in poor condition. Managers need to understand how these different reports capture the cumulative and annual inflows into and outflows from the firm. However, the steps are similar to those identified here. Building-focused KPIs. Regulatory Compliance: License renewal met, timely submission of operational reports, timely regulatory fee payments, operation and respect for assigned routes. Also see https://www.nwsc.co.ug/index.php/about-us/ourprofile. For simplicity these results can be presented in simple stop-light figures with green, yellow and red representing different levels of performance and arrows indicating the extent of improvement (or decline) in a, Establish rewards and penalties: There need to be clear procedures for planning and implementing incentives and corrective actions, where the incentives are commensurate with the benefits from achieving targets. The government company (ONATRACOM) providing public transportation did not have enough buses to cover all areas, and private companies could not get loans to buy new buses. Policies are not self-implementing. USMBOK™ is a registered trademark of Virtual Knowledge Solutions International Incorporated (VKSII). Performance incentives—How can regulators encourage improvements in specific dimensions of performance? For example, if admissions are decreasing, the organization can increase their marketing budget to draw in more patients, or consolidate staff positions to save money in the meantime. Managers should aim for 20-30 percent of completed work being reactive. Establish clear study objectives: Identifying reasonable targets and designing incentives to achieve them will frame the issues and identify data needs. Team Clarizen on Monday, March 16, 2020 Good project management should always involve clarity of direction for your team as well as transparency of progress for other stakeholders. Such analyses would go beyond the “trend analysis” conducted in more. Key Performance Indicators (KPIs) for the Service Transition processes from the ITIL Process Map. Apply data verification procedures: After data collection, techniques for verifying and comparing data need to be applied, so that bonuses and other incentives are not based on unverified data. 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