Transcript Performance Measurement an Management of PACA and LED: …

Performance Measurement an
Management of PACA and
LED: The Compass of Local
Competitiveness
Jörg Meyer-Stamer
[email protected]
A methodology for monitoring and
evaluation: The Balanced
Scorecard approach
Financial
perspective
Learning and
growth perspective
Customers’
perspective
Internal business
processes perspective
Key ideas involved in Balanced
Scorecard (1)
 BSC is not an ex-post evaluation tool, but a
performance management tool
– it forces actors to agree on goals and priorities
• You allow no more than 3 - 4 Critical Success
Factors (CSF) per quadrant
• You allow no more than 2 - 3 Key Performance
Indicators (KPI) per CSF
– BSC creates a concurrent process of action and of
reflection, leading to adjustment
Key ideas involved in Balanced
Scorecard (2)
 BSC is organised in a hierarchically structured way
– a top-level BSC at a programme / policy level
– more specific BSCs for initiatives that feed into the
programme
– even more specific BSCs for individual projects
and interventions
Adapting the Balanced Scorecard to PACA
The Compass of Local
Competitiveness: An Example
Economic impact:
* business retention
* creation of jobs and income
* generation of start-ups
External perspective:
* distinctive locational profile
* improved locational marketing
* better standing with funders
* stakeholder relationships
LED learning:
LED Process:
* LED skills accumulation
* alignment of goals and
objectives
* systematic M+E
* competent public service
* membership-driven Chamber
and business associations
* effective communication
between key players
Possible quick-wins with PACA
Economic impact:
* business retention
* creation of jobs and income
* generation of start-ups
External perspective:
* distinctive locational profile
* improved locational
marketing
* better standing with funders
* stakeholder relationships
LED learning:
LED Process:
* LED skills accumulation
* alignment of goals and
objectives
* systematic M+E
* competent public service
* membership-driven Chamber
and business associations
* effective communication
between key players
Context and purpose
 Assess the overall progress and impact of a PACA
Project or another LED initiative
 Create an occasion to discuss goals and achieve
goal alignment
– define indicators for each of the four quadrants in
a participatory way
• define critical success factors (CSFs)
• define key performance indicators (KPIs)
 Create an occasion for exchange of experience
between different subsector / cluster / value chain
initiatives.
How to do it practically?
Top-level workshop
 Workshop during first PACA follow-up
 Repeat the scoring exercise on a bi-monthly basis
 Start to collect hard data on OVIs as they become
available.
Sequence of activities in a
Compass Workshop
1 Framing: What exactly are we talking about?
2 Look back: What have we achieved so far?
3 Visioning: What are the overall objectives of the
object of the Compass?
4 Define Critical Success Factors
– organise CSFs into four quadrants
– prioritise them (Pareto)
5 Option 1: Define 2 - 3 KPIs for each CSF
– obtain a first score for each indicator
6 Option 2: Go directly into definition of activities to
address CSFs (with participants with little experience
in formulation of indicators
A possible Cluster / value chain /
subsector PACA Compass
Economic impact:
* business growth
* level of investment, rate of
return
* creation of jobs and income
Customers’ perspective:
* what are the CSFs in creating
and maintaining customer
interest (price, quality,
timely delivery, brand,
lifestyle, ...)
Innovation and learning:
Business Process:
* understanding the 5 forces
* skills development
* R&D
* linkages with support orgs.
* market intelligence
* productivity, quality, design,
upstream and downstream,
technology, market channels,
flexibility, responsiveness,
compliance with standards, ...
The Ilembe Agriprocessing
Compass
Economic impact:
* value chain integration
* product diversification
* market-driven demand
* availability of funding
Relationship:
* access to agricultural
product markets
* partnership btw. commercial
and emerging farmers
* coop. public/private sector
Knowledge and learning:
Internal organisation:
* effective transfer of skills
* extension
* market analysis
* capacity building in quality
control
* land reform
* agri BEE objectives
internalised
* effective process
management
Context and purpose
 Assess the overall progress and impact of a value
chain / cluster / subsector initiative
 Create an occasion to discuss goals and achieve
goal alignment
– define indicators for each of the four quadrants in
a participatory way
• define critical success factors
• define key performance indicators
– more customer-focused exercise
 Create an occasion for interaction between private
and public sector
How to do it practically?
 Workshop during first PACA follow-up
 Repeat the scoring exercise on a monthly or bimonthly basis
 Start to collect hard data as they become available
Some lessons learnt in Ilembe
pilot exercise (October 2004), 1
 Crucial to exactly define what the Compass is about
(limits of the system, insider / outsider, territory,
sector / value chain, LED / local development at
large)
 Build in iterations to check wording and alignment of
understanding
Some lessons learnt in Ilembe
pilot exercise (October 2004), 2
 The exercise involves an assessment of the overall
strategy -- to the surprise of the participants
– in locations with incipient LED activities, a
Compass workshop is a possible alternative to an
“LED Awareness Workshop”
– Option: use Compass for strategy formulation, use
Paper Computer for prioritisation
 The earlier you can introduce the Compass in an
LED initiative, the better (baseline data)
Thank you for your attention!