Improving Water Services Provision Through a National Municipal Benchmarking Initiative Benchmarking our way to better services, more effectively, more efficiently Water Services Leadership Group 18 November 2011

Water Services Benchmarking “A tool for performance improvement through systematic search and adaptation of leading practices” IWA’s Task Group on Benchmarking  Beyond comparative ranking ⇒ To performance improvement

Background to South African Water Services Benchmarking 1 st National Benchmarking Initiative ran from 2005 to st National Benchmarking Initiative ran from 2005 to 2008 Led by DWA, SALGA, WRC Led by DWA, SALGA, WRC Aimed to improve performance & support more sustainable water services delivery Aimed to improve performance & support more sustainable water services delivery 67 municipalities by municipalities by 2008 KPIs from the Strategic Framework for Water Services KPIs from the Strategic Framework for Water Services Laid the basis for the RPMS Laid the basis for the RPMS 2010: SALGA / WRC review of water services benchmarking 2010: SALGA / WRC review of water services benchmarking 2011: SALGA / WRC revive benchmarking to support municipal performance improvement: water services 2011: SALGA / WRC revive benchmarking to support municipal performance improvement: water services

Why revive benchmarking now? Improve performance, with an emphasis on improving service delivery Improve performance, with an emphasis on improving service delivery Measurement, analysis, comparison and shared learning Measurement, analysis, comparison and shared learning

Why revive benchmarking now? “Service delivery is a by-product of effective, efficient and economical processes that are informed by strategic direction, resource planning and implementation” Treasury MFMA Circular, October 2011 Treasury MFMA Circular, October 2011 Measuring and comparing operational and business performance provides feedback on where and how to improve service delivery Measuring and comparing operational and business performance provides feedback on where and how to improve service delivery Internal comparison, month by month, quarter by quarter Internal comparison, month by month, quarter by quarter External comparison with peers External comparison with peers

What’s the difference between this and the RPMS? Regulatory benchmarking – e.g. RPMS Regulatory benchmarking – e.g. RPMS Why: External assessment of performance with mandatory requirements - and a big stick Why: External assessment of performance with mandatory requirements - and a big stick Someone else decides what matters Someone else decides what matters Performance benchmarking – Municipal Benchmarking Initiative Performance benchmarking – Municipal Benchmarking Initiative Why: You want to improve your own operational and business performance, and see how you compare with others Why: You want to improve your own operational and business performance, and see how you compare with others You decide what matters, and where and how to improve, based on your own needs and objectives You decide what matters, and where and how to improve, based on your own needs and objectives For Municipalities, by Municipalities, to the Benefit of Municipal Services For Municipalities, by Municipalities, to the Benefit of Municipal Services

The Promise that Municipal Benchmarking Holds

Beyond Assessment, to Progressive Improvement

The Implementation Process

Learning and Improvement

Driving Smart Improvement

High-profile, SALGA-led initiative High-profile, SALGA-led initiative For municipalities, by municipalities, to the benefit of municipalities For municipalities, by municipalities, to the benefit of municipalities Aligned to International Best Practise Aligned to International Best Practise Initially Focused on Key Themes Initially Focused on Key Themes Municipalities choose themes Municipalities choose themes Well aligned to Sector processes Well aligned to Sector processes Department of Water Affairs Department of Water Affairs Treasury Treasury DCoG DCoG Presidency Presidency etc etc Key Features of the new MBI

We appreciate the difficulties of struggling municipalities and have strategies for dealing with this Maximum inclusiveness, through a stratified, modular approach to performance reporting Maximum inclusiveness, through a stratified, modular approach to performance reporting Surfaces & uses Existing Municipal data Surfaces & uses Existing Municipal data Support provided in identifying relevant KPIs and building data assessment systems Support provided in identifying relevant KPIs and building data assessment systems Focuses on progressive municipal performance improvement Focuses on progressive municipal performance improvement Core common indicators for external comparison Core common indicators for external comparison Knowledge sharing and peer networking through local, regional and national forums Knowledge sharing and peer networking through local, regional and national forums Web-based database, able to generate Web-based database, able to generate automatic easily readable reports automatic easily readable reports

We recognize the Wide range of Contexts

MBI Website Mock-up: Landing Page

Management Dashboard: Overview

Topic Module: including Dashboard, supportive resources and tools

Topic Module: KPI Dashboard

Allows for and guides choice of YOUR causative variables as to chosen KPIs Helps ensure you are tracking YOUR critical performance improvement dials

Set and Track your Own Targets

Phase 1: Review & Design Phase Phase 1: Review & Design Phase Phase 2: Initiation amongst all WSAs Phase 2: Initiation amongst all WSAs Phase 3: Institutionalization & Consolidation Phase 3: Institutionalization & Consolidation Phase 4: Iterative & Ongoing Strengthening Phase 4: Iterative & Ongoing Strengthening Where is Project Now?

In Conclusion How am I doing? How am I doing? Against my own previous performance Against my own previous performance Against my peers Against my peers Recognition – of achievements and challenges Recognition – of achievements and challenges Feedback on the impact of adjustments Feedback on the impact of adjustments Learn from peers Learn from peers ‘communities of practice’ ‘communities of practice’ Help and support Help and support Build understanding of what makes a difference to performance, and how to replicate it more widely Build understanding of what makes a difference to performance, and how to replicate it more widely Will lead to substantial improvements Will lead to substantial improvements in water services delivery … in water services delivery …

Thank you