Performance measurement an management of paca and led the compass of local competitiveness
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Performance Measurement an Management of PACA and LED: The Compass of Local Competitiveness. Jörg Meyer-Stamer jms@mesopartner.com. A methodology for monitoring and evaluation: The Balanced Scorecard approach. Customers’ perspective. Financial perspective. Learning and growth perspective.

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Performance Measurement an Management of PACA and LED: The Compass of Local Competitiveness

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Performance Measurement an Management of PACA and LED: The Compass of Local Competitiveness

Jörg Meyer-Stamer

jms@mesopartner.com


A methodology for monitoring and evaluation: The Balanced Scorecard approach

Customers’

perspective

Financial

perspective

Learning and

growth 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 PACAThe Compass of Local Competitiveness: An Example

External perspective:

* distinctive locational profile

* improved locational marketing

* better standing with funders

* stakeholder relationships

Economic impact:

* business retention

* creation of jobs and income

* generation of start-ups

LED learning:

* LED skills accumulation

* alignment of goals and

objectives

* systematic M+E

LED Process:

* competent public service

* membership-driven Chamber

and business associations

* effective communication

between key players


Possible quick-wins with PACA

External perspective:

* distinctive locational profile

* improved locational

marketing

* better standing with funders

* stakeholder relationships

Economic impact:

* business retention

* creation of jobs and income

* generation of start-ups

LED learning:

* LED skills accumulation

* alignment of goals and

objectives

* systematic M+E

LED Process:

* 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

1Framing: What exactly are we talking about?

2Look back: What have we achieved so far?

3Visioning: What are the overall objectives of the object of the Compass?

4Define Critical Success Factors

  • organise CSFs into four quadrants

  • prioritise them (Pareto)

    5Option 1: Define 2 - 3 KPIs for each CSF

  • obtain a first score for each indicator

    6Option 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

Customers’ perspective:

* what are the CSFs in creating

and maintaining customer

interest (price, quality,

timely delivery, brand,

lifestyle, ...)

Economic impact:

* business growth

* level of investment, rate of

return

* creation of jobs and income

Innovation and learning:

* understanding the 5 forces

* skills development

* R&D

* linkages with support orgs.

* market intelligence

Business Process:

* productivity, quality, design,

upstream and downstream,

technology, market channels,

flexibility, responsiveness,

compliance with standards, ...


The Ilembe Agriprocessing Compass

Relationship:

* access to agricultural product markets

* partnership btw. commercial

and emerging farmers

* coop. public/private sector

Economic impact:

* value chain integration

* product diversification

* market-driven demand

* availability of funding

Knowledge and learning:

* effective transfer of skills

* extension

* market analysis

* capacity building in quality

control

Internal organisation:

* 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 bi-monthly 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!


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