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Perspectives on Utility Benchmarking. Piers Cross. What is Benchmarking?. Systematic tool that allows comparative performance assessment (indicators for organizational processes, outputs) against best practices Traditionally measures performance on same organization/processes over time
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Perspectives on Utility Benchmarking Piers Cross
What is Benchmarking? • Systematic tool that allows comparative performance assessment (indicators for organizational processes, outputs) against best practices • Traditionally measures performance on same organization/processes over time • Can be used internally, competitively within similar or different industries or collaboratively
Performance Assessment + BM Actions to Improve Performance Performance Improvement Types of Benchmarking • Metric BM – showing quantitative measurement of differences in performance indicators indicators over time, e.g IBNET – shows gaps Doesn’t necessarily explain causes of gaps • Process BM – management analysis of selected processes, comparing and learning from highest performers. Process BM uses metric data but selects and studies key processes. Focus on single processes, can miss context • Consumer/Customer/Citizen Perceptions - Report Cards, surveys can reveal gaps between consumer and provider perceptions, over time helps policy-makers evaluate utility performance. Needs repeated, independent surveys, hard to finance. • Model Approach – Comparative performance analysis against an theoretical or ideal “model company” of efficient processes Can miss context influences
Vision of WSS Utility Benchmarking • Utilities are entry points to improve WSS management and meet MDGs and beyond • Benchmarking can improve performance of WSS Utility operators by: • Creating knowledge for informed decisions • Improving the impact from investments • Sharing comparative knowledge, especially successes • Tool for sector analysis and advocacy • Building capacity of weaker utilities and incentivizing high performers • Mutual support between utilities
Agree or Disagree? • The diversity of WSS Utilities in Africa makes them well-suited to benchmarking • Competitive performance data of water utilities in Africa provides the incentives make the tough decisions to improve utility performance? • Utility performance in Africa is significantly related to access and use of comparative performance data? • The experience of twinning between high performing and improving utility shows a marked improvement in weaker utility performances?
Evolution of Urban Water Supply in Africa Patterns of Water Access in African Cities
Challenges for BM of WSS Utilities in Africa • Diversity, scale, language • No shared customers.. not real competitors • Little incentives to gather and analyze quality data • Little capacity for analysis • Not always an evidence-based environment
Twinning has a Mixed Track Record Many launched, few survive and show impact Consult contract not deep partnership Utility may have little say or ownership
Main Messages • Performance improvement of utilities is critical to service improvement in developing countries • Performance improvement is a complex and interrelated management challenge: political will, institutional reform and financial viability are important • Benchmarking – especially consistent applied and used innovatively - can stimulate the reform and financing process and be of great use to management: better data, analysis, communications, ownership of actions, and stronger consumer voice can make a difference • Need to incentivize use of benchmarking for it to be effective • Since effect is varied, be strategic in selection of application of benchmarking innovations and link to reform processes for impact