Objectives of the Pilot
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1 NARBO Performance Benchmarking Lessons from the Pilots A. Inocencio, I. Makin, W. Arriens, D. von Custodio
2 Objectives of the Pilot Confirm that the balancedscorecard (BSC) framework is satisfactory RBO performance assessment Test peer review system Guide in revising & improving indicators Help develop reporting formats Help revise & improve interface & database
3 River Basin Organizations The Four Perspectives of Performance Management for Non-Profit Organizations Balanced Scorecard To achieve our mission how should we engage with our stakeholders? Stakeholders Objectives Measures Targets Initiatives To achieve our mission how will we sustain our ability to change and improve? Learning and Growth Objectives Measures Targets Initiatives Mission Internal Business Processes To satisfy our stakeholders what business processes must we excel at? Objectives Measures Targets Initiatives To succeed financially how should we appear to our stakeholders? Financial Objectives Measures Targets Initiatives
4 NARBO Indicators Stakeholders 3: Customer involvement 4: Customer feedback 5: Environmental Audits 6: Basin Livelihood IBP 10: Planning maturity 11: Water Allocation 12: Data sharing MISSION 1: RBO Status 2: Governance L&G 7: HRD 8: Technical Dev t 9: Organization Dev t Finance 13: Cost recovery 14: Financial efficiency
5 The Process 1) Self-Assessment Assesses the RBO s performance in terms of 4 key performance areas (KPAs) & the achievement of its mission as an organization Identifies the strengths of RBO, areas for improvement & further investment
6 The Process (cont.) 2) Peer Review Ensures consistency of interpretation Provides an inbuilt system of mutual accountability by utilizing peer recognition to achieve positive results A process of subjecting the organization to the scrutiny of peers
7 The Process (cont.) 2) Peer Review Assists participating RBO identify strategies to improve performance Assists in developing a network of experienced people to support RBO performance evaluation activities A peer reviewed benchmarking supports dialogue, transparency, capability building & legitimization of new knowledge
8 THE LESSONS Benchmarking Tool Benchmarking Process Benchmarking Results
9 The Benchmarking Tool 1. The benchmarking tool has real potential & can be useful across RBO types or forms or stage of development 2. IWRM Vision - for benchmarking to be useful, the RBO must have a clear vision of its purpose & a commitment to performance management 3. IWRM & Benchmarking Link - a good understanding of IWRM is needed to set relevant & meaningful targets; a clear & shared vision is a critical requirement for performance improvement
10 The Benchmarking Tool (cont.) 4. Balanced scorecard - intended to facilitate translation of RBO strategy towards the IWRM mission, & into key performance areas (KPAs) The Four Perspectives of Performance Management for Non-Profit Organizations To achieve our mission how should we engage with our stakeholders? Stakeholders Objectives Measures Targets Initiatives 5. Internal consistency need to understand linkages & flow of causes & effects in setting targets; setting high targets in achieving overall mission should be backed by high & achievable target improvements in 4 KPAs To achieve our mission how will we sustain our ability to change and improve? Learning and Growth Objectives Measures Targets Initiatives To succeed financially how should we appear to our stakeholders? Mission Financial Objectives Measures Internal Business Processes To satisfy our stakeholders what business processes must we excel at? Targets Initiatives Objectives Measures Targets Initiatives
11 The Benchmarking Process 6. Commitment & full support of top executive & management are imperative 7. Selection of Self- Assessment Team Chair & members -the composition of the team is important 8. Selection of Peer Reviewers - this requires finding technically knowledgeable & willing RBO members to serve as reviewers Benchmarking becomes effective when embedded in the organizations culture & business processes rather than being considered an external addendum
12 The Benchmarking Results 9. Report Formats (a) Self-Assessment Report (b) Peer Review Report 10.Current Ratings - RBOs rated performance according to 14 indicators; can do better by providing more compelling evidence 11.Setting Targets difficult; partly due to lack of a shared IWRM vision & an understanding of the BSC; RBOs need to set SMART targets Critical Performance Area / Indicators Max Score PJT2 (2006) MASL (2006) LLDA (2007) RRBO (2007) MISSION 1. RBO Status RBO Governance STAKEHOLDERS 3. Customer Involvement Customer Feedback Environmental Audits Basin Livelihoods LEARNINGAND GROWTH 7. Human Resource Dev't Technical Dev't Organizational Dev't INTERNAL BUSINESS OBJECTIVES 10. Planning Maturity Water Allocation Data Sharing FINANCE 13. Cost Recovery Financial Efficiency TOTAL As %of maximumscore of
13 On-line Benchmarking Service 12.On-line service has taken a backseat need consider whether the on-line service should be utilized by each RBO & whether the participating RBOs are willing to use the on-line system to facilitate sharing of information; - this aspect entails agreeing what information/details should be shared among RBOs
14 Conclusions The balanced-scorecard framework can be a satisfactory performance assessment tool The peer review system if done well can provide both credibility & improved evaluation/ratings & targets/initiatives The indicators can be adjusted but should be given a try & RBOs can modify as they gain more experience There are now examples of useful reporting formats but should continue to improve & modify Interface & database with less progress
15 What next? Consider whether to continue performance benchmarking for other NARBO member RBOs & others Forge a closer link between the IWRM & performance benchmarking initiatives Discuss monitoring of progress in meeting performance targets Discuss how to develop a network of experienced people to support this; consider the need to train more peer reviewers Discuss what to share & how to best use the on-line performance benchmarking service
16 Performance benchmarking is a continuing process. With more practice will come better understanding & appreciation of the tool & process & the more useful will be the outcomes! Thank you Check out NARBO s Work on the web site:
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