Developing a performance measurement tool to monitor the performance of a public sector agency : a balanced scorecard approach
- Authors: Lisani, Ncedo
- Date: 2015
- Subjects: South Africa. Economic Development Department , South Africa. Department of Environmental Affairs and Tourism , Performance -- Measurement , Performance -- Management , Public administration -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:848 , http://hdl.handle.net/10962/d1017515
- Description: The world has seen unparalleled pressure put on the public sector to improve the speed and quality of service delivery, whilst simultaneously employing measures to cut the costs. South Africa and the Eastern Cape have not been immune to this as there have been complaints and demonstrations from various national and provincial stakeholders demanding more and improved services. The Department of Economic Development, Environmental Affairs and Tourism (DEDEAT) in particular has employed the services of public entities in its quest to realise government’s socio-economic developmental objectives and ease some of the service delivery pressures. These agencies are unfortunately struggling to deliver and the Department is unable to play the oversight role it is legislatively mandated to carry out. The main reason for this seem to be the lack of the capacity to objectively track and measure the performance of these agencies. As they say “you cannot manage what you cannot measure”. This is despite the fact that there is a shareholders’ compact and many other measures in place to enable performance monitoring. Also, the public sector is known to have inherent and unique performance management challenges like broad and vague objectives which lead to too many measurements, a propensity to focus on the “easy to measure” but often irrelevant indicators at the expense of critical outcomes and a short-term orientation that is usually fuelled by political expediency. Against this background, this study sought to make use of a comprehensive and dynamic performance monitoring framework, namely the Balanced Scorecard (BSC), to explore its potential use in assisting government to monitor the performance of public agencies, in particular the Development Finance Institutions (DFI) in South Africa. The proposed framework helps government to focus on the performance drivers of future value, and what decisions and actions are necessary to achieve critical outcomes. The aim of the study therefore is to develop an adjusted BSC framework to monitor the activities of a public sector agency and thus demonstrate how a BSC framework could be used to monitor a public agency by the government department. The study is evaluative in nature and is divided into three sections. Section one is presented as an Evaluation Report. It sets the scene, discusses briefly the key theoretical concepts, outlines the research methods used and presents the findings followed by a discussion and recommendations. Section two delves into the literature in more detail, providing a more extensive review of the literature that informed the investigation, whilst section three provides a more extensive description of the research methodology employed in the study. To achieve the aims of the study, the research drew from the work of various authors in the field including that of Bigliardi, Dormio and Galati, 2011; Bititci, Garengo, Dörfler, and Nudurupati, 2012; Julyan, 2011; Kaplan and Norton, 1992, 1993, 1996, 2001, 2004 and 2006; Niven, 2003 and 2008 and Northcott and Taulapapa, 2012. Also, five BSC perspectives - including the programme specific “equity” perspective - were used to develop an interview schedule. These were used to formulate the key performance objectives and indicators, based on the stakeholder’s responses. These respondents have experience within the programme as administrators, beneficiaries and funders. The research employed purposive sampling with semi-structured in-depth interviews and document analysis as primary and secondary instruments for data collection. In essence, five officials from the agency, one from DEDEAT and two co-operatives participated in the research. The results indicate a general appreciation of and gravitation towards outcome based measures, even though the government culture of focusing on outputs is still prevalent. The results of the study indicated that, generally, a government - public agency BSC based performance monitoring framework would have the following features: Customer objectives and programme mission as the main goal and this will provides clarity at all levels on who the customers are and what are their primary requirements. Clear, visible and stringent financial controls as the agency is administering public resources. Few carefully selected processes and systems that have a direct and positive impact on the customer objectives. Deliberate and consistent efforts to promote the participation of designated groups in the economy of the country. Comprehensive indicators on capacity building as “mission based-organisations rely heavily on skills, dedication and alignment of staff”. Overall, the study concludes that the make-up of the BSC is beneficial to the public sector and in monitoring the public sector agencies for the following reasons: It helps the agency to focus on customers and their needs. It forces the agency to engage and communicate strategic intention with both internal and external stakeholders and thus synchronize competing stakeholder needs. It forces the agency to limit the number of indicators and therefore select the few value adding measures that are aligned to customer outcomes. Through its cause and effect relationship, the agency is compelled to align all the resources, activities and processes to the main goal of the entity. All these help to minimize the principal agent problem, as the use of the BSC can bring clarity on strategy and expectations, provided it is supported with regular communication.
- Full Text:
- Authors: Lisani, Ncedo
- Date: 2015
- Subjects: South Africa. Economic Development Department , South Africa. Department of Environmental Affairs and Tourism , Performance -- Measurement , Performance -- Management , Public administration -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:848 , http://hdl.handle.net/10962/d1017515
- Description: The world has seen unparalleled pressure put on the public sector to improve the speed and quality of service delivery, whilst simultaneously employing measures to cut the costs. South Africa and the Eastern Cape have not been immune to this as there have been complaints and demonstrations from various national and provincial stakeholders demanding more and improved services. The Department of Economic Development, Environmental Affairs and Tourism (DEDEAT) in particular has employed the services of public entities in its quest to realise government’s socio-economic developmental objectives and ease some of the service delivery pressures. These agencies are unfortunately struggling to deliver and the Department is unable to play the oversight role it is legislatively mandated to carry out. The main reason for this seem to be the lack of the capacity to objectively track and measure the performance of these agencies. As they say “you cannot manage what you cannot measure”. This is despite the fact that there is a shareholders’ compact and many other measures in place to enable performance monitoring. Also, the public sector is known to have inherent and unique performance management challenges like broad and vague objectives which lead to too many measurements, a propensity to focus on the “easy to measure” but often irrelevant indicators at the expense of critical outcomes and a short-term orientation that is usually fuelled by political expediency. Against this background, this study sought to make use of a comprehensive and dynamic performance monitoring framework, namely the Balanced Scorecard (BSC), to explore its potential use in assisting government to monitor the performance of public agencies, in particular the Development Finance Institutions (DFI) in South Africa. The proposed framework helps government to focus on the performance drivers of future value, and what decisions and actions are necessary to achieve critical outcomes. The aim of the study therefore is to develop an adjusted BSC framework to monitor the activities of a public sector agency and thus demonstrate how a BSC framework could be used to monitor a public agency by the government department. The study is evaluative in nature and is divided into three sections. Section one is presented as an Evaluation Report. It sets the scene, discusses briefly the key theoretical concepts, outlines the research methods used and presents the findings followed by a discussion and recommendations. Section two delves into the literature in more detail, providing a more extensive review of the literature that informed the investigation, whilst section three provides a more extensive description of the research methodology employed in the study. To achieve the aims of the study, the research drew from the work of various authors in the field including that of Bigliardi, Dormio and Galati, 2011; Bititci, Garengo, Dörfler, and Nudurupati, 2012; Julyan, 2011; Kaplan and Norton, 1992, 1993, 1996, 2001, 2004 and 2006; Niven, 2003 and 2008 and Northcott and Taulapapa, 2012. Also, five BSC perspectives - including the programme specific “equity” perspective - were used to develop an interview schedule. These were used to formulate the key performance objectives and indicators, based on the stakeholder’s responses. These respondents have experience within the programme as administrators, beneficiaries and funders. The research employed purposive sampling with semi-structured in-depth interviews and document analysis as primary and secondary instruments for data collection. In essence, five officials from the agency, one from DEDEAT and two co-operatives participated in the research. The results indicate a general appreciation of and gravitation towards outcome based measures, even though the government culture of focusing on outputs is still prevalent. The results of the study indicated that, generally, a government - public agency BSC based performance monitoring framework would have the following features: Customer objectives and programme mission as the main goal and this will provides clarity at all levels on who the customers are and what are their primary requirements. Clear, visible and stringent financial controls as the agency is administering public resources. Few carefully selected processes and systems that have a direct and positive impact on the customer objectives. Deliberate and consistent efforts to promote the participation of designated groups in the economy of the country. Comprehensive indicators on capacity building as “mission based-organisations rely heavily on skills, dedication and alignment of staff”. Overall, the study concludes that the make-up of the BSC is beneficial to the public sector and in monitoring the public sector agencies for the following reasons: It helps the agency to focus on customers and their needs. It forces the agency to engage and communicate strategic intention with both internal and external stakeholders and thus synchronize competing stakeholder needs. It forces the agency to limit the number of indicators and therefore select the few value adding measures that are aligned to customer outcomes. Through its cause and effect relationship, the agency is compelled to align all the resources, activities and processes to the main goal of the entity. All these help to minimize the principal agent problem, as the use of the BSC can bring clarity on strategy and expectations, provided it is supported with regular communication.
- Full Text:
The consideration and improvement of the sustainability performance monitoring framework for South African water boards
- Authors: Thompson, Craig Howard
- Date: 2015
- Subjects: South Africa -- Department of Water Affairs -- Management , Water-supply -- Law and legislation -- South Africa , Performance -- Management , Environmental auditing -- South Africa
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:858 , http://hdl.handle.net/10962/d1018916
- Description: The South African Constitution ensures the right to adequate water, health services and a healthy environment (Government Gazette, 1996: 1251, 1255). Associated legislation and national strategies require that water resources and water services are rendered in a sustainable manner to ensure the rights enshrined in the Constitution are realised (Trialogue, 2010: 34; Government Gazette, 1998(c):11; Department of Water Affairs (DWA), 2003:9). South Africa is the 30th driest country in the world (DWA, 2013: iii), has impounded most of its surface water resources and has utilised 40 percent of the groundwater resource with remaining groundwater water quality uncertain (DWA, 2013:6-7). Despite achieving the basic water and sanitation Millennium Development Goals approximately 2.2 million and 4.5 million households still require access to basic services respectively (DWA, 2013:28-29). South Africa’s ten water boards play a key role in bulk water service provision. They supply 57 percent of the countries domestic water supply (DWA, 2013:19) and are required to provide sustainable water services (Government Gazette, 1997:35). The Department of Water Affairs (Department of Water and Sanitation (DWS) as of June 2014) is mandated to monitor the performance of water boards and monitors of water boards through a Share Holders Compact (SHC) (Government Gazette, 1997: 50). The aim of the research is to achieve the following objectives: 1. Describe best practice for sustainability monitoring frameworks for water services. 2. Outline South Africa’s water services mandatory and voluntary requirements with regards to sustainability monitoring. 3. Evaluate South Africa’s current water services performance monitoring framework for water boards against findings from goals one and two. 4. Develop an improved framework for assessing South African water board’s performance in their compliance and sustainability journey. 5. Demonstrate the improved framework functionality with a sample of water boards audited performance data from the 2012/13 financial year. A qualitative normative theory evaluation research method was utilised to achieve first three objectives of the research. The objectives to first understand current best practice for sustainability monitoring frameworks and the mandatory requirements for water services sustainability monitoring frameworks in South Africa was achieved via an extensive literature review. The evaluation research method was used where South Africa’s current water services monitoring framework for water boards was evaluated for its adequacy to monitor sustainability compared with legislated requirements, national and international best practices (Hall et al, 2004: 55). Data collection for the evaluation research was sourced via documentation analysis. The 2012/13 water board audited annual reports, relevant national water services legislation, national and global water service sustainability monitoring best practices were critically reviewed. The review yielded a “thick description” of sustainability performance monitoring framework requirements that was used to evaluate the SHC (Holliday, 2002: 79). Despite the mandatory participation requirement for successful sustainability performance monitoring being met, the SHC was found to have inadequate aspects. It lacks an outcomes based approach, does not include environmental indicators, does not allow water board sustainability performance comparison and cannot indicate where individual water boards are on their sustainability journey. An improved sustainability performance monitoring framework for South African water boards is therefore proposed. This was developed with the assistance of an expert focus group drawn from multiple disciplines and organizations relevant to water board sustainability (Litosseliti, 2003: 8 and Hall et al, 2004: 51). The functionality of the framework is then demonstrated using 2012/13 audited performance data sourced from the annual reports of Overberg, Amatola, Rand and Umgeni Water boards. The proposed Water Services Sustainability Monitoring Framework (WSSMF) quantifies performance in terms of 10 water utility outcomes that are measured with 88 performance indicators that encompass the financial, social, environmental and governance dimensions of sustainability. The WSSMF demonstrated that the legislated intentions and best practice recommendations can be incorporated into an improved version of the SHC. Further refinement of the WSSMF is required. In depth engagement with DWS and all the water boards would promote the refinement of the indicator set, performance thresholds for indicators and indicator weighting. Further testing through a pilot project initiative would allow the WSSMF to be developed into a robust and adequate sustainability performance monitoring framework for South African water boards (Rametsteiner et al, 2011: 64; Muga and Mihelcic, 2008: 438; McAlphine and Birnie, 2005: 247 and van Leeuwen et al, 2012: 2192).
- Full Text:
- Authors: Thompson, Craig Howard
- Date: 2015
- Subjects: South Africa -- Department of Water Affairs -- Management , Water-supply -- Law and legislation -- South Africa , Performance -- Management , Environmental auditing -- South Africa
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:858 , http://hdl.handle.net/10962/d1018916
- Description: The South African Constitution ensures the right to adequate water, health services and a healthy environment (Government Gazette, 1996: 1251, 1255). Associated legislation and national strategies require that water resources and water services are rendered in a sustainable manner to ensure the rights enshrined in the Constitution are realised (Trialogue, 2010: 34; Government Gazette, 1998(c):11; Department of Water Affairs (DWA), 2003:9). South Africa is the 30th driest country in the world (DWA, 2013: iii), has impounded most of its surface water resources and has utilised 40 percent of the groundwater resource with remaining groundwater water quality uncertain (DWA, 2013:6-7). Despite achieving the basic water and sanitation Millennium Development Goals approximately 2.2 million and 4.5 million households still require access to basic services respectively (DWA, 2013:28-29). South Africa’s ten water boards play a key role in bulk water service provision. They supply 57 percent of the countries domestic water supply (DWA, 2013:19) and are required to provide sustainable water services (Government Gazette, 1997:35). The Department of Water Affairs (Department of Water and Sanitation (DWS) as of June 2014) is mandated to monitor the performance of water boards and monitors of water boards through a Share Holders Compact (SHC) (Government Gazette, 1997: 50). The aim of the research is to achieve the following objectives: 1. Describe best practice for sustainability monitoring frameworks for water services. 2. Outline South Africa’s water services mandatory and voluntary requirements with regards to sustainability monitoring. 3. Evaluate South Africa’s current water services performance monitoring framework for water boards against findings from goals one and two. 4. Develop an improved framework for assessing South African water board’s performance in their compliance and sustainability journey. 5. Demonstrate the improved framework functionality with a sample of water boards audited performance data from the 2012/13 financial year. A qualitative normative theory evaluation research method was utilised to achieve first three objectives of the research. The objectives to first understand current best practice for sustainability monitoring frameworks and the mandatory requirements for water services sustainability monitoring frameworks in South Africa was achieved via an extensive literature review. The evaluation research method was used where South Africa’s current water services monitoring framework for water boards was evaluated for its adequacy to monitor sustainability compared with legislated requirements, national and international best practices (Hall et al, 2004: 55). Data collection for the evaluation research was sourced via documentation analysis. The 2012/13 water board audited annual reports, relevant national water services legislation, national and global water service sustainability monitoring best practices were critically reviewed. The review yielded a “thick description” of sustainability performance monitoring framework requirements that was used to evaluate the SHC (Holliday, 2002: 79). Despite the mandatory participation requirement for successful sustainability performance monitoring being met, the SHC was found to have inadequate aspects. It lacks an outcomes based approach, does not include environmental indicators, does not allow water board sustainability performance comparison and cannot indicate where individual water boards are on their sustainability journey. An improved sustainability performance monitoring framework for South African water boards is therefore proposed. This was developed with the assistance of an expert focus group drawn from multiple disciplines and organizations relevant to water board sustainability (Litosseliti, 2003: 8 and Hall et al, 2004: 51). The functionality of the framework is then demonstrated using 2012/13 audited performance data sourced from the annual reports of Overberg, Amatola, Rand and Umgeni Water boards. The proposed Water Services Sustainability Monitoring Framework (WSSMF) quantifies performance in terms of 10 water utility outcomes that are measured with 88 performance indicators that encompass the financial, social, environmental and governance dimensions of sustainability. The WSSMF demonstrated that the legislated intentions and best practice recommendations can be incorporated into an improved version of the SHC. Further refinement of the WSSMF is required. In depth engagement with DWS and all the water boards would promote the refinement of the indicator set, performance thresholds for indicators and indicator weighting. Further testing through a pilot project initiative would allow the WSSMF to be developed into a robust and adequate sustainability performance monitoring framework for South African water boards (Rametsteiner et al, 2011: 64; Muga and Mihelcic, 2008: 438; McAlphine and Birnie, 2005: 247 and van Leeuwen et al, 2012: 2192).
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