Monitoring Policy for Sector Skill Councils

Transcription

1 Monitoring Policy for Sector Skill Councils Version 1.0 This Document is meant for existing and future Sector Skill Councils (SSCs) to provide an overview of the monitoring mechanism and policy to be followed by NSDC. This document may be revised as per requirements arising in future. The revised document will be shared with the SSCs as and when the revisions are done.

2 Table of Contents 1. OVERVIEW OBJECTIVES OF NSDC S MONITORING PROCESS FOR SSCS KEY ACTIVITIES OF THE MONITORING TEAM MONITORING AND EVALUATION FRAMEWORK KICK-OFF MEETING ANNUAL PLANNING AND SIGN-OFF SELF-REPORTING OF TECHNICAL AND FINANCIAL PERFORMANCE UTILIZATION CERTIFICATE MONTHLY CONFERENCE CALLS AND MEETINGS PERFORMANCE REVIEW MEETINGS SCORE CARD BASED PERFORMANCE EVALUATION Design methodology Scorecard parameters and scoring methodology Actions and support based on performance VALIDATION POLICY SKILL DEVELOPMENT MANAGEMENT SYSTEM Overview of the SDMS tool Key functions of the SDMS tool Benefits of the SDMS tool to various stakeholders FUND DISBURSEMENT SSC SUPPORT SPECIALIST GROUP National Skill Development Corporation Page 2

3 1. Overview National Skill Development Corporation was set up as part of the National Skill Development Mission to fulfil the growing need in India for skilled manpower across sectors and narrow the existing gap between the demand and supply of skilled resources. The key objective of NSDC as an organization is to achieve quality and sustainable skill development at scale. NSDC also has a task of developing an enabling environment for skills development, including support for creation of sector-specific standards/skills through promotion of Sector Skills Councils. As per National Skill Development Policy 2009, National Skill Development Corporation would constitute SSCs with following functions: Setting up LMIS to assist planning and delivery of training. Identification of skill development needs and preparing a catalogue of skill types. Develop a sector skill development plan and maintain skill inventory. Developing skill competency standards and qualifications. Standardisation of affiliation and accreditation process. Participation in affiliation, accreditation, certification. Plan and execute training of trainers. Promotion of academies of excellence. 1.1 Objectives of NSDC s monitoring process for SSCs The key objectives of NSDC s monitoring process for SSCs are listed below. Keep track of performance against NSDC s overall goals as a skill development organization Provide early view of risks (financial, operational and social) to enable early mitigation Use the knowledge gained to ensure informed decision making National Skill Development Corporation Page 3

4 1.2 Key activities of the monitoring team In order to achieve the above mentioned objectives, the Monitoring Team of NSDC needs to work in tandem with the SSCs. The key activities performed by the NSDC s monitoring team are shown in the figure on the next page. Active hand-holding in the initial stages and regular course correction is to be undertaken by the Head, SSC (Standards and QA), supported by the SSC Support Specialist Group. One of the key activities of the Monitoring team at NSDC includes monitoring of the engagement of SSCs with the SSC support specialist group. 2. Monitoring and Evaluation Framework As an organization, with the objective of contributing significantly to the overall mission of skilling people and establishing an entire eco-system in India, NSDC needs a robust and effective monitoring and evaluation framework for SSCs, to ensure appropriate operational efficiencies and utilization of funds, in line with NSDC objectives. Some of the key focus areas of NSDC s SSC monitoring and evaluation framework would be the following. Fund utilization Approval of NOS by industry players Approval of NOS by industry players Accreditation of training and assessment agencies Certification of trainees Acceptance of SSC certified trainees by employers Revenue generated Acceptance of SSC certified trainees by employers Accreditation of agencies and certification of trainees National Skill Development Corporation Page 4

5 Revenue generated 1 Fund utilization The SSCs will be monitored and evaluated on a periodic basis. The activities that are undertaken as a part of the monitoring and evaluation exercise at NSDC are listed below along with their associated frequency. S. No. Activity 1. Kick-off meeting to be conducted with each SSC approved Responsibility Frequency NSDC Within 10 days from signing of minutes of the Board meeting 2. Annual planning and sign-off as per agreement. SSC Every year by 10 th February for next financial year Status updates by initial stage SSCs in a standard template shared by NSDC. Self-reporting of technical and financial performance by Pilot stage SSCs in a standard template shared by NSDC. Utilization Certificate to be provided by SSCs in a standard template shared by NSDC. Conference calls and meetings with each SSC to understand their issues, challenges and any support required from NSDC. Performance review meetings to be conducted for each operational SSC. SSC Monthly SSC Quarterly SSC Quarterly NSDC & SSC Monthly NSDC & SSC Quarterly 8. Evaluation of technical and financial performance of each SSC, using the evaluation scorecard, based on the self-reporting by SSCs. NSDC Quarterly & Annually 9. Validation of the information self-reported by SSCs to NSDC. NSDC All SSCs to be covered at least once each year 10. Financial audit of each SSC. NSDC 11. Monitoring of the activities undertaken by the SSC Support Specialist Group NSDC At least once in every 2 years and not more than once a year or as desired On continuous basis 1 In case the SSC has proposed revenue streams National Skill Development Corporation Page 5

6 2.1 Kick-off meeting The kick off meeting will be conducted within 10 days from signing of minutes of the Board meeting post approval of an SSC and the meeting invite will be sent by NSDC to each new SSC approved and funded by NSDC. This is an important exercise which will set the expectations of both parties and will lay down the policy and process requirements. The officials who are expected to be a part of these kick off meetings are listed below: The Chairman, SSC At least two members of the SSC governing council NSDC nominee Director of SSC CEO/Business Head, SSC Senior members of SSC as required Head, Standards & QA, NSDC Head, Monitoring & MIS, NSDC SSC support specialist group members, NSDC Monitoring team, NSDC Other members of NSDC as required The primary focus of discussions and activities to be undertaken as a part of these kick-off meetings, apart from any additional agenda identified by NSDC, are listed on the next page: The monitoring and evaluation process at NSDC The reporting requirements and their associated timelines The tools and templates to be used for reporting purpose The repercussions of missing the reporting deadline and associated penalty, if any Any issues and challenges faced by the SSC Appointment of a nodal person for coordination on monitoring and evaluation activities from each side (SSC and NSDC) The SSC performance evaluation scorecard, its parameters, associated weightages and the frequency of evaluation The fund disbursement process and associated templates The milestones to be achieved by the SSC and the associated timelines as per the agreement. 2.2 Annual planning and sign-off At the start of every financial year, the SSCs would be required to submit their quarter-wise annual plans for the coming financial year, latest by 10th February of the previous year. This will help NSDC s monitoring team to evaluate the SSC s performance on a quarterly basis. A standard template for collection of annual plans data is given in Appendix 1. A discussion with the SSC management will be undertaken in order to ensure that annual plans are realistic and to establish ownership. The SSCs will be required to provide detailed reasons for deviations, if any, along with the corrective course of action taken or to be undertaken. National Skill Development Corporation Page 6

7 Taking a collaborative approach, this process will also help NSDC take cognizance of the issues and challenges that SSCs might be facing. The SSC support specialist group members at NSDC can help them with appropriate guidance and interventions required for handholding and course correction. 2.3 Self-reporting of technical and financial performance A quarterly MIS reporting tool will be used for tracking and monitoring of SSCs performance on various social, operational and financial parameters. The dashboard template has been developed and is given in Appendix 2. The monitoring team at NSDC will educate the SSCs on all the fields and formats of the MIS dashboard to be filled in by the SSC, during the kick-off meeting. The MIS dashboard template (currently MS-Excel based) is required to be sent to NSDC before the 5 th of the subsequent month post every quarter end or earlier, as and when required in case of urgency. The said template will also be available on the NSDC website for ready reference. The person appointed by SSC for the coordination of monitoring and evaluation activities will be responsible for the data reporting and will take full ownership of the data reported to NSDC. The SSC should take utmost care to ensure that the data reported to NSDC is complete and correct in all aspects. The effort should be such that it requires minimal data cleansing exercise at NSDC. NSDC offers maximum autonomy and freedom to the SSCs and therefore, a self-reporting mechanism is adopted for collecting data. The assumption in this case is that the SSCs will give authenticated true data without any mal-intention or without following any malpractices. The data, however, may be validated by NSDC as per validation policy defined in this document. 2.4 Utilization Certificate All the SSCs need to provide a fund Utilization Certificate at the end of each quarter to NSDC in the desired format. This certificate has the details of the fund utilization and revenue generation by the SSC during the last quarter. A standard template for Utilization Certificate is given in Appendix 3 and the same is to be used for reporting purpose. The Utilization Certificate must be on the letter head of the SSC and should be certified by a Chartered Accountant. 2.5 Monthly conference calls and meetings NSDC will conduct individual monthly conference calls with all its SSCs in order to discuss any updates from either side and understand the issues and challenges faced in the project. The invite for the call will be sent to each of the SSCs during the first week of the month and the coordinator at the SSC s end is expected to either accept or propose a new time for the call. The call would be conferenced between Head, Monitoring & MIS and CEO/Business Head of SSC. The Head, Standards & QA and MD & CEO, NSDC, may also attend the conference call. These monthly conference calls throw open an effective channel where NSDC and SSCs can jointly discuss the project updates, assistance required from NSDC, issues and concerns and arrive at mutually agreeable solutions. A detailed template for documentation of the monthly call details is given in Appendix 4. A brief workflow for reporting and managing monthly calls is described in the figure below. National Skill Development Corporation Page 7

8 NSDC will also conduct a monthly meeting with all SSCs in order to review the progress and discuss any issues, challenges or concerns. The meeting dates will be communicated to all SSCs in advance by NSDC. 2.6 Performance review meetings A performance review meeting will be conducted on a quarterly basis with each of the operational SSCs who have been active for more than a quarter. The review meetings should be attended by the following members: The Chairman, SSC Some members of the SSC Governing Council CEO/Business Head of SSC Senior members of SSC as required CEO and/or Head, Standards and QA, NSDC Head, Monitoring & MIS, NSDC SSC support specialist group members, NSDC Monitoring team, NSDC Other members of NSDC as required The invite for the review meetings will be sent by NSDC. The primary focus of discussions and activities to be undertaken as a part of these review meetings, apart from any additional agenda identified by NSDC, are listed below: Actual achievement as compared to target as approved by NSDC Average delay, if any, in starting implementation Average time overrun, if any, in completing implementation Quality of implementation Any issues and challenges faced by the SSC Technical parameters as specified in the agreement Any issues with the discrepancies in data reporting exercise by the SSC National Skill Development Corporation Page 8

9 2.7 Score card based performance evaluation Since monitoring indicators may not provide sufficient information on the progress of the project, it is important to conduct periodic comprehensive evaluation for capturing learning s, validation of results and decision-making. In order to assess performance, it is necessary to know more than actual achievements including information about how they were achieved, influencing factors and resources, impact etc. A score card has been designed with this objective by NSDC. Measuring whether SSCs performance is aligned to NSDC s objectives Proactively identify program risks, both financial, operational and social, so as to be ready with early mitigation strategies Tracking performance Course correction Early identification of course corrections required, both for SSCs as well as for NSDC Support SSCs in course correction based on triggers The objectives of NSDC s monitoring process has been given due attention while selecting the scorecard parameters for evaluation. These objectives have been depicted in the figure above Design methodology The purpose of performance monitoring will be based on the stage of operation of the respective SSC. S. No. Stage of operation Stage duration Frequency of monitoring Purpose of monitoring 1. Initial stage Post NSDC Board approval till 1 st disbursement by NSDC 1. Monthly status update* 2. Monthly conference calls Monitor the status of activities of initial set-up of SSCs 2. Pilot stage 2-3 years** of operations post 1 st disbursement 1. Monthly meetings and conference calls 2. Quarterly progress review Measure the following: 1. Milestones vs achievement 2. Strategy & planning, e.g., for inclusion of industry players, LMIS, etc. National Skill Development Corporation Page 9

10 S. No. Stage of operation Stage duration Frequency of monitoring Purpose of monitoring 3. Scaled-up stage Post 2-3 years of pilot operations Frequency to be based on the performance during pilot stage, measured by the scorecard rating***, as listed below. 1. Red Monthly 2. Yellow Quarterly 3. Green Quarterly Measure ability to deliver at scale. Also measuring of the following: 1. Milestones vs achievement 2. Strategy & planning, e.g., for inclusion of industry players, LMIS, etc Scorecard parameters and scoring methodology The performance evaluation will be done using the scorecard on a quarterly and annual basis. The parameters included in the scorecard, their definitions and associated weightages have been detailed below. A detailed template is given in Appendix 5. Initial Stage Programmatic progress parameters: S.No. Parameter Definition Weightage (%) Infrastructure and organizational capability 100% This is to evaluate whether appointment of all top management positions, including the Chairman / CEO, as per the organization structure decided at the proposal stage is completed. 1 % of essential top management positions vacant SSC to self-report basis following rubric (as per Year 1 of Business Plan): 1 >50% of the positions vacant, and/or CEO not in place % of the positions vacant positions vacant 4 All critical positions filled In addition, SSC to provide a brief comment on each of the critical positions that are vacant. 30% 2 Have the IT capabilities been upgraded to handle NSDC data monitoring requirements? IT capabilities and other required infrastructure set up should be in place and upgraded to handle NSDC s data reporting and monitoring requirements. SSC to self-report basis following rubric: 1 IT capabilities incapable of handling monthly and 20% National Skill Development Corporation Page 10

11 S.No. Parameter Definition Weightage (%) quarterly reporting requirements 2 IT capabilities can handle some input and output reporting requirements, but it would be difficult to report all input, output and micro level data. Can expect significant difficulty in adhering to reporting deadlines 3 IT capabilities can handle most input and output metric reporting, but cannot track and report micro level data. Can expect ~90% adherence to reporting deadlines 4 IT systems fully equipped to handle NSDC reporting requirements. Can expect full adherence to reporting deadlines. In addition, SSC to provide a brief comment on the investment made on adopting IT capabilities and whether there is a common IT server or is it manual. Finance and accounting capabilities (staff, IT, etc.) should be in place and upgraded to provide accurate and timely financial information to NSDC. 3 Are the finance / accounting capabilities (staff, IT etc) enough to provide accurate & timely financial information to NSDC? SSC to self-report basis following rubric: 1 Finance/accounting capabilities not adequate to meet regular financial reporting requirements (e.g., P&L statement, balance sheet, cashflow statement, etc.). Can expect difficulties w.r.t adhering to reporting deadlines and accuracy 2 Finance/accounting capabilities can handle some basic financial reporting requirements accurately (e.g., revenues, total costs, etc.), but there exist challenges in timely preparation of accurate basic financial reports (e.g., P&L statement, balance sheet, cashflow statement, etc.). Can expect ~25-50% adherence to reporting deadlines, with reports having some errors 3 Finance/accounting capabilities can handle most financial reporting requirements accurately (e.g., P&L statement, balance sheet, cashflow statement, etc.). Can expect ~7 adherence to reporting deadlines, with reports having minimal errors 4 Finance/accounting systems fully equipped to handle NSDC reporting requirements. Can expect full adherence to reporting deadlines, reports are accurate 20% In addition, SSC to provide a brief comment on: Total number of finance/accounting people employed Has their work been recommended by their previous employers? After receiving the first quarter s financial statements, monitoring team can modify rating based on quality of submitted statements National Skill Development Corporation Page 11

12 S.No. Parameter Definition Weightage (%) MoUs should be signed with top 10 industry players covering the complete span of the sector about representation on Board, funding, infrastructure and human resource support. 4 MoUs with top 10 industry players covering the span of the sector. SSC to self-report basis following rubric: 1 - No MoUs signed till date 2 - MoUs signed with <50% of the top 10 industry players covering the span of the sector. 3 - MoUs signed with <80% of the top 10 industry players covering the span of the sector. 4 - MoUs signed with >80% of the top 10 industry players covering the span of the sector. 1 In addition, SSC to provide a list of industry players with whom MoUs have been signed and a list of industry players with whom the MoU signing is in process. Plan for documentation of end-to-end functional process for skill mapping of the industry. The plan needs to be validated by an eminent industry expert. 5 Plan for documentation of end-to-end functional process for skill mapping of the industry SSC to self-report basis following rubric: 1 - No plan for documentation of end-to-end functional process for skill mapping of the industry. It is yet to be initiated. 2 - Preparation of plan for documentation of end-to-end functional process for skill mapping of the industry has been initiated but not completed yet. 3 - Plan for documentation of end-to-end functional process for skill mapping of the industry has been completed. The same has not been validated yet. 4 - Plan for documentation of end-to-end functional process for skill mapping of the industry has been completed and validated by an eminent industry expert. 1 In addition, SSC to provide brief information on the validator of the plan. Financial progress parameters: S. No. Parameter Definition 1 Total fund utilization Increase of aggregate fund utilization over target by a specific level 2 Deviation in fund utilization Significant deviations in multiple line items, or significant deviations in critical inputs identified National Skill Development Corporation Page 12

13 Pilot Stage - Quarterly Social excellence parameters: S.No. Parameter Definition Weightage (%) NOS related output The SSCs to identify key occupations/trades in the sector covered and develop skill competency standards / NOS and qualifications. 1 Trades for which National Occupational Standards (NOS) developed Target: key 2 occupations in the sector covered in Year 1 and another 50% in Year 2. The quarterly breakup of the same to be obtained from the SSC during the kick-off meeting. The score to be calculated basis the %age achievement of planned numbers as per the agreement milestones. 2 Number of industry players who have validated NOS 2 The %age achievement of planned number of industry players who were expected to approve the NOS. The score to be calculated basis the %age achievement of planned numbers as per the agreement milestones. The quarterly break-up of the same to be obtained from the SSC during the kick-off meeting. Certification related outputs 3 Number of NSDC training agencies accredited The %age achievement of number of NSDC training agencies planned to be accredited. The list of NSDC training agencies to be accredited will be given to the SSC by NSDC during the kick-off meeting. 4 Number of non - NSDC training agencies accredited The %age achievement of the number of non-nsdc training agencies planned to be accredited. 5 Number of assessment agencies accredited The %age achievement of the number of assessment agencies planned to be accredited. 2 In such cases where the planned number of industry players expected to approve NOS are not listed in the deliverables, these should be obtained from the SSC during the kick-off meeting. National Skill Development Corporation Page 13

14 S.No. Parameter Definition Weightage (%) 6 Number of NSDC trainees certified The %age achievement of the planned number of NSDC trainees to be certified. The list of NSDC trainees to be certified will be given to the SSC by NSDC during the kick-off meeting. 1 7 Number of non-nsdc trainees certified The %age achievement of the planned number of non- NSDC trainees to be certified. 1 Industry utilities related outputs 8 Progress in creation of fully functional LMIS 3 The scoring to be done basis the following rubric: 1 - The creation of LMIS has not been initiated. 2 - The creation of LMIS has been initiated and is 50% complete w.r.t. the planned activities. 3 - The creation of LMIS has been initiated and is 80% complete w.r.t. the planned activities. 4 - The LMIS has been complete with respect to the planned activities. The quarterly break-up of the planned activities to be obtained from the SSC during the kick-off meeting. 9 Progress in creation of sector specific utility as agreed in the term sheet which are over and above the parameters listed above (these would be mutually agreed upon during the kick off meeting, e.g. no. of trainers trained, etc.). The scoring to be done basis the following rubric: 1 - The creation of sector specific utility has not been initiated. 2 - The creation of sector specific utility has been initiated and is 50% complete w.r.t. the planned activities. 3 - The creation of sector specific utility has been initiated and is 80% complete w.r.t. the planned activities. 4 - The creation of sector specific utility as agreed has been completed w.r.t. the planned activities. The quarterly break-up of the planned activities to be obtained from the SSC during the kick-off meeting. Inputs 10 % of essential top management positions vacant. This is to evaluate whether appointment of all top management positions, including the Chairman / CEO, as per the organization structure decided at the proposal stage is completed. 3 In such cases where the plan for creation of fully functional LMIS is not listed in the deliverables, these should be obtained from the SSC during the kick-off meeting. National Skill Development Corporation Page 14

15 S.No. Parameter Definition Weightage (%) SSC to self-report basis following rubric: 1 >50% of the positions vacant, and/or CEO not in place % of the positions vacant positions vacant 4 All critical positions filled In addition, SSC to provide a brief comment on each of the critical positions that are vacant. MoUs should be signed with top 100 industry players covering the complete span of the sector about representation on Board, funding, infrastructure and human resource support. 11 MoUs with top 100 industry players covering the span of the sector. SSC to self-report basis following rubric: 1 - No MoUs signed till date 2 - MoUs signed with <50% of the top 100 industry players covering the span of the sector. 3 - MoUs signed with <80% of the top 100 industry players covering the span of the sector. 4 - MoUs signed with >80% of the top 100 industry players covering the span of the sector. In addition, SSC to provide a list of industry players with whom MoUs have been signed and a list of industry players with whom the MoU signing is in process. Financial excellence parameters: S.No. Parameter Definition Financial health Decrease of earned revenue by a percentage in relation to the target set for the quarter. 1 Earned revenue vs. target 4 Earned Revenue results from all business activities during the quarter. Earned revenue is total revenues less "Contributed Revenue" (Grants and Donations). The interest on FDs is not included. (Rating calculated on year-to-date numbers). 4 In case the SSC has proposed revenue streams National Skill Development Corporation Page 15

16 S.No. Parameter Definition 2 EBITDA 5 over target ratio Decrease of EBITDA in relation to the target set for the quarter. Fund utilization 3 Total fund utilisation Increase of aggregate fund utilization over target by a specific level. 4 Deviation in fund utilization Significant deviations in multiple line items or significant deviations in critical inputs identified. 5 In case the SSC has proposed revenue streams National Skill Development Corporation Page 16

17 Scaled-up stage - Quarterly Social excellence parameters: S.No. Parameter Definition Weightage (%) NOS related output The SSCs to identify key occupations/trades in the sector covered and develop skill competency standards / NOS and qualifications. 1 Trades for which National Occupational Standards (NOS) developed Target: key 2 occupations in the sector covered in Year 1 and another 50% in Year 2. The quarterly breakup of the same to be obtained from the SSC during the kick-off meeting. The score to be calculated basis the %age achievement of planned numbers as per the agreement milestones. 2 Number of industry players who have validated NOS 6 The %age achievement of planned number of industry players who were expected to approve the NOS. The score to be calculated basis the %age achievement of planned numbers as per the agreement milestones. The quarterly break-up of the same to be obtained from the SSC during the kick-off meeting. Certification related outputs 3 Number of NSDC training agencies accredited The %age achievement of number of NSDC training agencies planned to be accredited. The list of NSDC training agencies to be accredited will be given to the SSC by NSDC during the kick-off meeting. 4 Number of non - NSDC training agencies accredited The %age achievement of the number of non-nsdc training agencies planned to be accredited. 5 Number of assessment agencies accredited The %age achievement of the number of assessment agencies planned to be accredited. 6 In such cases where the planned number of industry players expected to approve NOS are not listed in the deliverables, these should be obtained from the SSC during the kick-off meeting. National Skill Development Corporation Page 17

18 S.No. Parameter Definition Weightage (%) 6 Number of NSDC trainees certified The %age achievement of the planned number of NSDC trainees to be certified. The list of NSDC trainees to be certified will be given to the SSC by NSDC during the kick-off meeting. 1 7 Number of non-nsdc trainees certified The %age achievement of the planned number of non- NSDC trainees to be certified. 1 Industry utilities related outputs 8 Progress in creation of fully functional LMIS 7 The scoring to be done basis the following rubric: 1 - The creation of LMIS has not been initiated. 2 - The creation of LMIS has been initiated and is 50% complete w.r.t. the planned activities. 3 - The creation of LMIS has been initiated and is 80% complete w.r.t. the planned activities. 4 - The LMIS has been complete with respect to the planned activities. The quarterly break-up of the planned activities to be obtained from the SSC during the kick-off meeting. 9 Progress in creation of sector specific utility as agreed in the term sheet which are over and above the parameters listed above (these would be mutually agreed upon during the kick off meeting, e.g. no. of trainers trained, etc.). The scoring to be done basis the following rubric: 1 - The creation of sector specific utility has not been initiated. 2 - The creation of sector specific utility has been initiated and is 50% complete w.r.t. the planned activities. 3 - The creation of sector specific utility has been initiated and is 80% complete w.r.t. the planned activities. 4 - The creation of sector specific utility as agreed has been completed w.r.t. the planned activities. The quarterly break-up of the planned activities to be obtained from the SSC during the kick-off meeting. Inputs 10 % of essential top management positions vacant. This is to evaluate whether appointment of all top management positions, including the Chairman / CEO, as per the organization structure decided at the proposal stage is completed. 7 In such cases where the plan for creation of fully functional LMIS is not listed in the deliverables, these should be obtained from the SSC during the kick-off meeting. National Skill Development Corporation Page 18

19 S.No. Parameter Definition Weightage (%) SSC to self-report basis following rubric: 1 >50% of the positions vacant, and/or CEO not in place % of the positions vacant positions vacant 4 All critical positions filled In addition, SSC to provide a brief comment on each of the critical positions that are vacant. MoUs should be signed with top 100 industry players covering the complete span of the sector about representation on Board, funding, infrastructure and human resource support. 11 MoUs with top 100 industry players covering the span of the sector. SSC to self-report basis following rubric: 1 - No MoUs signed till date 2 - MoUs signed with <50% of the top 100 industry players covering the span of the sector. 3 - MoUs signed with <80% of the top 100 industry players covering the span of the sector. 4 - MoUs signed with >80% of the top 100 industry players covering the span of the sector. In addition, SSC to provide a list of industry players with whom MoUs have been signed and a list of industry players with whom the MoU signing is in process. Financial excellence parameters: S.No. Parameter Definition Financial health Decrease of earned revenue by a percentage in relation to the target set for the quarter. 1 Earned revenue vs. target 8 Earned Revenue results from all business activities during the quarter. Earned revenue is total revenues less "Contributed Revenue" (Grants and Donations). The interest on FDs is not included. (Rating calculated on year-to-date numbers). 2 EBITDA 9 over target ratio Decrease of EBITDA in relation to the target set for the quarter. 8 In case the SSC has proposed revenue streams 9 In case the SSC has proposed revenue streams National Skill Development Corporation Page 19

20 S.No. Parameter Definition Fund utilization 3 Total fund utilisation Increase of aggregate fund utilization over target by a specific level. 4 Deviation in fund utilization Significant deviations in multiple line items or significant deviations in critical inputs identified. Pilot stage Annually Social excellence parameters: S.No. Parameter Definition Weightage (%) NOS related output The SSCs to identify key occupations/trades in the sector covered and develop skill competency standards / NOS and qualifications. 1 Trades for which National Occupational Standards (NOS) developed Target: key 2 occupations in the sector covered in Year 1 and another 50% in Year 2. The quarterly breakup of the same to be obtained from the SSC during the kick-off meeting. The score to be calculated basis the %age achievement of planned numbers as per the agreement milestones. 2 Number of industry players who have validated NOS 10 The %age achievement of planned number of industry players who were expected to approve the NOS. The score to be calculated basis the %age achievement of planned numbers as per the agreement milestones. The quarterly break-up of the same to be obtained from the SSC during the kick-off meeting. Certification related outputs 3 Number of NSDC training agencies accredited The %age achievement of number of NSDC training agencies planned to be accredited. The list of NSDC training agencies to be accredited will be given to the SSC by NSDC during the kick-off meeting. 10 In such cases where the planned number of industry players expected to approve NOS are not listed in the deliverables, these should be obtained from the SSC during the kick-off meeting. National Skill Development Corporation Page 20

21 S.No. Parameter Definition Weightage (%) 4 Number of non - NSDC training agencies accredited The %age achievement of the number of non-nsdc training agencies planned to be accredited. 5 Number of assessment agencies accredited The %age achievement of the number of assessment agencies planned to be accredited. 6 Number of NSDC trainees certified The %age achievement of the planned number of NSDC trainees to be certified. The list of NSDC trainees to be certified will be given to the SSC by NSDC during the kick-off meeting. 7 Number of non-nsdc trainees certified The %age achievement of the planned number of non- NSDC trainees to be certified. Industry utilities related outputs 8 Progress in creation of fully functional LMIS 11 The scoring to be done basis the following rubric: 1 - The creation of LMIS has not been initiated. 2 - The creation of LMIS has been initiated and is 50% complete w.r.t. the planned activities. 3 - The creation of LMIS has been initiated and is 80% complete w.r.t. the planned activities. 4 - The LMIS has been complete with respect to the planned activities. The quarterly break-up of the planned activities to be obtained from the SSC during the kick-off meeting. 9 Progress in creation of sector specific utility as agreed in the term sheet which are over and above the parameters listed above (these would be mutually agreed upon during the kick off meeting, e.g. no. of trainers trained, etc.). The scoring to be done basis the following rubric: 1 - The creation of sector specific utility has not been initiated. 2 - The creation of sector specific utility has been initiated and is 50% complete w.r.t. the planned activities. 3 - The creation of sector specific utility has been initiated and is 80% complete w.r.t. the planned activities. 4 - The creation of sector specific utility as agreed has been completed w.r.t. the planned activities. The quarterly break-up of the planned activities to be obtained from the SSC during the kick-off meeting. 11 In such cases where the plan for creation of fully functional LMIS is not listed in the deliverables, these should be obtained from the SSC during the kick-off meeting. National Skill Development Corporation Page 21

22 S.No. Parameter Definition Weightage (%) Satisfaction outcomes 10 Industry satisfaction score Would you hire trainees that have completed XX program from XX training institution and with certification from XX SSC and recommend them to other similar employers? (average across all responses) 1- Probably or definitely not; 2- Un-certain; 3- Probably yes; 4- Definitely yes 11 Certified student satisfaction score Would you recommend XX program that you have attended at XX training institution and been certified by XX SSC, to others? (average across all responses) 1- Probably or definitely not; 2- Uncertain; 3- Probably yes; 4- Definitely yes 12 No. of industry top 100 players employing only certified people or giving differential wages The scoring to be done basis the following rubric: 1 - None of the industry top 100 players employing only certified people or giving differential wages 2-50% of the industry top 100 players employing only certified people or giving differential wages 3-80% of the industry top 100 players employing only certified people or giving differential wages 4-100% of the industry top 100 players employing only certified people or giving differential wages In addition SSC to give a list of the industry top 100 players employing only certified people or giving differential wages Inputs This is to evaluate whether appointment of all top management positions, including the Chairman / CEO, as per the organization structure decided at the proposal stage is completed. 13 % of essential top management positions vacant. SSC to self-report basis following rubric: 1 >50% of the positions vacant, and/or CEO not in place % of the positions vacant positions vacant 4 All critical positions filled In addition, SSC to provide a brief comment on each of National Skill Development Corporation Page 22

23 S.No. Parameter Definition Weightage (%) the critical positions that are vacant. MoUs should be signed with top 100 industry players covering the complete span of the sector about representation on Board, funding, infrastructure and human resource support. 14 MoUs with top 100 industry players covering the span of the sector. SSC to self-report basis following rubric: 1 - No MoUs signed till date 2 - MoUs signed with <50% of the top 100 industry players covering the span of the sector. 3 - MoUs signed with <80% of the top 100 industry players covering the span of the sector. 4 - MoUs signed with >80% of the top 100 industry players covering the span of the sector. In addition, SSC to provide a list of industry players with whom MoUs have been signed and a list of industry players with whom the MoU signing is in process. Financial excellence parameters: S.No. Parameter Definition Financial health Decrease of earned revenue by a percentage in relation to the target set for the quarter. 1 Earned revenue vs. target 12 Earned Revenue results from all business activities during the quarter. Earned revenue is total revenues less "Contributed Revenue" (Grants and Donations). The interest on FDs is not included. (Rating calculated on year-to-date numbers). 2 EBITDA 13 over target ratio Decrease of EBITDA in relation to the target set for the quarter. Fund utilization 3 Total fund utilisation Increase of aggregate fund utilization over target by a specific level. 4 Deviation in fund utilization Significant deviations in multiple line items or significant deviations in critical inputs identified. 12 In case the SSC has proposed revenue streams 13 In case the SSC has proposed revenue streams National Skill Development Corporation Page 23

24 Scaled-up stage Annually Social excellence parameters: S.No. Parameter Definition Weightage (%) NOS related output The SSCs to identify key occupations/trades in the sector covered and develop skill competency standards / NOS and qualifications. 1 Trades for which National Occupational Standards (NOS) developed Target: key 2 occupations in the sector covered in Year 1 and another 50% in Year 2. The quarterly breakup of the same to be obtained from the SSC during the kick-off meeting. The score to be calculated basis the %age achievement of planned numbers as per the agreement milestones. 2 Number of industry players who have validated NOS 14 The %age achievement of planned number of industry players who were expected to approve the NOS. The score to be calculated basis the %age achievement of planned numbers as per the agreement milestones. The quarterly break-up of the same to be obtained from the SSC during the kick-off meeting. Certification related outputs 3 Number of NSDC training agencies accredited The %age achievement of number of NSDC training agencies planned to be accredited. The list of NSDC training agencies to be accredited will be given to the SSC by NSDC during the kick-off meeting. 4 Number of non - NSDC training agencies accredited The %age achievement of the number of non-nsdc training agencies planned to be accredited. 5 Number of assessment agencies accredited The %age achievement of the number of assessment agencies planned to be accredited. 6 Number of NSDC trainees certified The %age achievement of the planned number of NSDC trainees to be certified. The list of NSDC trainees to be certified will be given to 14 In such cases where the planned number of industry players expected to approve NOS are not listed in the deliverables, these should be obtained from the SSC during the kick-off meeting. National Skill Development Corporation Page 24

25 S.No. Parameter Definition Weightage (%) the SSC by NSDC during the kick-off meeting. 7 Number of non-nsdc trainees certified The %age achievement of the planned number of non- NSDC trainees to be certified. Industry utilities related outputs 8 Progress in creation of fully functional LMIS 15 The scoring to be done basis the following rubric: 1 - The creation of LMIS has not been initiated. 2 - The creation of LMIS has been initiated and is 50% complete w.r.t. the planned activities. 3 - The creation of LMIS has been initiated and is 80% complete w.r.t. the planned activities. 4 - The LMIS has been complete with respect to the planned activities. The quarterly break-up of the planned activities to be obtained from the SSC during the kick-off meeting. 9 Progress in creation of sector specific utility as agreed in the term sheet which are over and above the parameters listed above (these would be mutually agreed upon during the kick off meeting, e.g. no. of trainers trained, etc.). The scoring to be done basis the following rubric: 1 - The creation of sector specific utility has not been initiated. 2 - The creation of sector specific utility has been initiated and is 50% complete w.r.t. the planned activities. 3 - The creation of sector specific utility has been initiated and is 80% complete w.r.t. the planned activities. 4 - The creation of sector specific utility as agreed has been completed w.r.t. the planned activities. The quarterly break-up of the planned activities to be obtained from the SSC during the kick-off meeting. Satisfaction outcomes 10 Industry satisfaction score Would you hire trainees that have completed XX program from XX training institution and with certification from XX SSC and recommend them to other similar employers? (average across all responses) 1- Probably or definitely not; 2- Un-certain; 3- Probably yes; 4- Definitely yes 15 In such cases where the plan for creation of fully functional LMIS is not listed in the deliverables, these should be obtained from the SSC during the kick-off meeting. National Skill Development Corporation Page 25

26 S.No. Parameter Definition Weightage (%) 11 Certified student satisfaction score Would you recommend XX program that you have attended at XX training institution and been certified by XX SSC, to others? (average across all responses) 1- Probably or definitely not; 2- Uncertain; 3- Probably yes; 4- Definitely yes 12 No. of industry top 100 players employing only certified people or giving differential wages The scoring to be done basis the following rubric: 1 - None of the industry top 100 players employing only certified people or giving differential wages 2-50% of the industry top 100 players employing only certified people or giving differential wages 3-80% of the industry top 100 players employing only certified people or giving differential wages 4-100% of the industry top 100 players employing only certified people or giving differential wages In addition SSC to give a list of the industry top 100 players employing only certified people or giving differential wages Inputs This is to evaluate whether appointment of all top management positions, including the Chairman / CEO, as per the organization structure decided at the proposal stage is completed. 13 % of essential top management positions vacant. SSC to self-report basis following rubric: 1 >50% of the positions vacant, and/or CEO not in place % of the positions vacant positions vacant 4 All critical positions filled In addition, SSC to provide a brief comment on each of the critical positions that are vacant. 14 MoUs with top 100 industry players covering the span of the sector. MoUs should be signed with top 100 industry players covering the complete span of the sector about representation on Board, funding, infrastructure and human resource support. SSC to self-report basis following rubric: 1 - No MoUs signed till date 2 - MoUs signed with <50% of the top 100 industry players covering the span of the sector. National Skill Development Corporation Page 26

27 S.No. Parameter Definition Weightage (%) 3 - MoUs signed with <80% of the top 100 industry players covering the span of the sector. 4 - MoUs signed with >80% of the top 100 industry players covering the span of the sector. In addition, SSC to provide a list of industry players with whom MoUs have been signed and a list of industry players with whom the MoU signing is in process. Financial excellence parameters: S.No. Parameter Definition Financial health Decrease of earned revenue by a percentage in relation to the target set for the quarter. 1 Earned revenue vs. target 16 Earned Revenue results from all business activities during the quarter. Earned revenue is total revenues less "Contributed Revenue" (Grants and Donations). The interest on FDs is not included. (Rating calculated on year-to-date numbers). 2 EBITDA 17 over target ratio Decrease of EBITDA in relation to the target set for the quarter. Fund utilization 3 Total fund utilisation Increase of aggregate fund utilization over target by a specific level. 4 Deviation in fund utilization Significant deviations in multiple line items or significant deviations in critical inputs identified. 16 In case the SSC has proposed revenue streams 17 In case the SSC has proposed revenue streams National Skill Development Corporation Page 27

28 Financial excellence rating Scoring Methodology Social excellence score Actual scores of individual SSCs Color coding based on actual scores Derived score calculation based on weightage / normalization Total of individual derived score for output & input parameters Total score for social excellence is weighted sum of i/p & o/p parameters Financial excellence score Actual scores of individual parameter Derived score calculation based on risk point assignment Total score for financial excellence based on the sum of risk points assigned to all individual parameters Overall SSC classification based on combination of social and financial excellence ratings For quarterly SSC review by monitoring team, classification as Red: Under-performers Yellow: Facing challenges Green: On-track For semi-annual/annual SSC review, classification as Green: On track Yellow: Off track Red: Watchlist or under-performers Watchlist SSCs Green Yellow Red Every year, SSCs with long term performance issues or serious discriminatory events are Red Yellow Green Social excellence rating National Skill Development Corporation Page 28

29 classified in a watchlist. The criteria for watch-listing is twofold as described below Consistent non-performance Red classification in 3 quarterly cycles in past year. For initial and pilot stage, this would mean red classification throughout the stage. Problems faced are structural and long term, with limited management ability and willingness to solve the problem. SSC has missed NSDC interest payment or principal repayment on more than 2 occasions. Serious discriminatory events Legal action initiated against the concerned SSC having a material impact on sustainability Audits/data reveals misappropriation of funds (e.g., NSDC funds used to fund other businesses) Significant deviations in business plan or targets (resulting in misalignment of committed funds and scale of operations) Actions and support based on performance i. Green: On track a. Basic monitoring to continue for on-track / green SSCs every quarter and the learning will be shared with other SSCs. b. However, if performance dips next quarter for previously green SSCs, the following actions would be taken: o o SSCs will need to identify their challenges and reasons for poor performance and provide NSDC with their plan to overcome these challenges and improve performance. SSCs will need to provide a detailed and constructive future course of action along with deviations and reasons for such deviations, duly verified by their Governing Council. ii. Yellow: Off track a. Focus on off-track or yellow SSCs each quarter. o o Fund disbursement to such SSCs will be prorated based on the actual performance. SSCs will need to provide a detailed and constructive future course of action along with deviations and reasons for such deviations, duly verified by their Governing Council. b. While the responsibility for performance improvement lies entirely with the SSC, NSDC may consider providing support for some SSCs, based on need, size, etc. Where such support is offered, the SSC is expected to utilize it with full cooperation. c. Listed below are some means of providing handholding support. o Monthly calls with relevant stakeholders to understand the challenges and recommend a solution. National Skill Development Corporation Page 29