1. Benchmarking for Improved Water Utility Performance

2. Utility Simulation Game 2.0

3. Learning Objectives Directly experience consequences of implementing a given strategy in a ‘protected’ environment. Experiment with consequences of decisions through a a trial and error process. Exercise practical skills such as negotiation and consensus building, which are key for managers working in any kind of organization. Analyze and draw conclusions on trade-offs, constraints and opportunities in utility management.

4. Game Concept Utility managers often face conflicting objectives –Short term versus long term objectives –Financial viability versus affordability/equity –Service expansion versus service improvement –Etc. In this game the trade-offs in utility management become explicit and players need to make decisions on what trade-offs they choose. –Players have different roles (and as such different interests and are likely to make different decisions regarding the trade-offs)

5. Utility Simulation Game: roles 4 Roles –General manager –Financial manager –Customer manager –Operations manager

6. Full cost recovery ratio and Operating ratio Asset value Financial Manager

7. Utility Simulation Game: Playing the game Step 1: Developing a Strategy Joint analysis of the management team Development of a strategy (Where do they want to target investments? Which KPIs should be targeted for improvement?) Step 2: Making Preliminary Decisions

8. Possible decisions and initial values

9. Unitary cost of each decision

10. Utility Simulation Game: US$ 2 Million Step 3: Negotiating the Decisions and Investments of a Year The general managers will have to enter into negotiations with the individual managers. The general manager may do this in bilateral negotiations or through a group negotiation. Step 4: Submitting the Decisions and Calculating the Impact The general manager submits the final decisions for the year. ‘ ‘New’ situation with respect to the KPIs (printing of an overview of the KPIs. New Round.

11. Utility Simulation Game: Comparative Performance Three teams will play the same scenario, competing against each other.

12. Utility Simulation Game: Political Interference In many countries political interference in utility management may complicate management decisions….this game is no different. The facilitator represents the political realm and as such may at some point prioritize certain objectives (i.e. indicators) or may freeze certain decisions through the dissemination of press-statements (the Xia-Xia Times). –Tariff levels –Affordability –Service coverage –Etc.

13. Resources Manual Case study description

14. General Manager Profitability Loan utilization: initial value 3,000,000 US$ Staff satisfaction Overall performance of the Utility: Benchmarking

15. Physical water losses (physical non- revenue water) Continuity of water supply Quality of water Service coverage. Operational Manager

16. Customer satisfaction Commercial non-revenue water, Affordability of tariffs Collection efficiency Commercial Manager