Perspectives on Utility Benchmarking

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Perspectives on Utility Benchmarking

• Piers Cross

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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

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Types of Benchmarking

• Metric BM showing quantitative measurement of
  differences in performance indicators indicators
  over time, e.g IBNET shows gaps
• Doesnt 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

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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

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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?

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Range of Utility Institutional Arrangements
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Evolution of Urban Water Supply in Africa
Patterns of Water Access in African Cities
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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

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Coverage Against Sector Performance in Africa
Utilities
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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
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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

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Six Remarkable Performers in Africa
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Some Recent Innovative Cases of Twinning
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Professional Support Models