1. Perspectives on Utility Benchmarking Piers Cross

2. 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

3. Types of Benchmarking  Metric BM – showing quantitative measurement of differences in performance indicators indicators over time, e.g IBNET – shows gaps Doesn’t 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 Performance Improvement Performance Assessment + BM Actions to Improve Performance

4. 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

5. Agree or Disagree? 1. The diversity of WSS Utilities in Africa makes them well-suited to benchmarking 2. Competitive performance data of water utilities in Africa provides the incentives make the tough decisions to improve utility performance? 3. Utility performance in Africa is significantly related to access and use of comparative performance data? 4. The experience of twinning between high performing and improving utility shows a marked improvement in weaker utility performances?

6. Percentage of total population in service area covered by water utilities Total connections (Residential & Non- Residential )

7. Range of Utility Institutional Arrangements Percentage of urban HH >2 kms from their water source Average hours of insufficient water supply in a month

8. Piped Water StandpostsWells/ boreholes Surface WaterVendors 1990-1995 50%29%20%6%3% 1996-2000 43%25%21%5%2% 2001-2005 39%24% 7%4% Evolution of Urban Water Supply in Africa Patterns of Water Access in African Cities

9. 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

10. CountryAnnual change in coverage Utility efficien cy Utility Cost recovery Annual expenditu re per capita Regulation score Reform scoreGovernance score Annual ODA per capita Burkina Faso7.40%Lowhigh lowhigh Uganda5.51%Lowhighlowhigh low Ethiopia4.50%Lowlow Benin4.38%Highhigh low high Chad3.63% low high Cote d'Ivoire3.30%Highlow high low Rwanda3.01%Lowhighlow Namibia2.90% highlow high Madagascar2.42% low highlow Niger2.42%Highhigh Malawi2.37%Lowlow high DRC2.25%Highlow highlow Lesotho2.22% Highlow high Senegal1.86% high Zambia1.04%Lowlowhigh Mozambique0.68%Lowlow high Ghana0.42% high lowhigh Tanzania0.41%Lowlow highlow high Kenya-0.09%Lowlow high low Nigeria-2.00%low high low Coverage Against Sector Performance in Africa Utilities

11. 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

12. 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

13. EthiopiaCote d’Ivoire UgandaBurkina Faso NigeriaMalawi Six Remarkable Performers in Africa

14. Some Recent Innovative Cases of Twinning

15. Professional Support Models