1. Aiding Business Plan Implementation through Multi Level Measurement SystemBy
Dr Mohammed Al-Waqfi
Technical Monitoring & Auditing Manager
Program Management Unit/WAJ

2. Objective Presenting a proposed systematic approach to building a hierarchal PI measurement system that aids prudent monitoring of the implementation of business and strategic plans

3. Business plan:
A business plan can be defined as a road map with a specific set of actions and interventions for achieving certain results (i.e., objectives).
It involves process improvement
An objective is what intended to be achieved.
Utility objectives should be
Within or fit in the sector’s strategic goals.
Measureable (can be translated into a performance indicator).
Attained through efforts or actions
Lead to gains (outcomes) from its implementation.
Short term

4. Business plan: Objectives evolve functional plans: Operational.
Financial.
Institutional.
Customer Service
HR, etc.
Functional Objective
Utility Objective
Specific for an activity/department
For the utility or organization.
Measurable

5. Business plan:Prior to
SWOT
Potential Strengths
Internal
Potential Weaknesses
Potential Opportunities
External
Potential Threats
Utility Performance Improvement, Aqaba 21-22/2/2016

6. Strengths
Internal
External
Opportunities
Utility structure is flexible to serve work requirements.
Good IT infrastructure that is expandable.
IT systems are upgradable and integrable.
PPP is viable.
Governing laws can be amended if necessary.
Institutional & financial independence
Qualified personnel.
Leadership takes a participatory approach in running its business, etc.
Country is secure and stable.
Government interested in attracting foreign and local private investments in the field of water and wastewater.
A variety of aid programs (grants, technical assistance, etc.) is available.
Availability of local funding sources i.e. (social security, local banks).
Weaknesses
Organization structure not linked to cost centers.
Some responsibilities in WAJ law not clear.
Revenues are insufficient.
Operational and capital costs increasing.
Financial deficit increasing.
Cost recovery low and decreasing.
Budget dependence on loans and grants.
Key employees about to retire is high.
Succession planning not employed.
Incentives not sufficient to attract qualified personnel or to retain those present.
Employee performance and appraisal system is not properly employed and is not linked to training and rewards.
Utility is not entitled to amend water and wastewater tariffs without cabinet approval.
Lack of stability in some neighboring countries .
Unexpected immigrations from neighboring countries to Jordan.
The economic growth in the country is slow.
Inflation rates are relatively high.
Cost of debt service is high.
Inability to match the rapid pace of development in Information Technology and Communication.
Threats

7. Business plan: Prior to
Situational Analysis includes
Institutional
Organization structure.
Training.
Employees turnover.
Plans .
Financial.
Revenues.
Debts.
Cost recovery.
Subsidies by Government.
Energy cost.
Loans and grants.
Operational
Water production and supply.
Wastewater treatment and reuse.
Exports and imports of water.
NRW.
Collection.
Complaints.
Service coverage.
Water quality.
No action implications.

8. Implementation Monitoring: Performance measurement
Business plan:
It Evolves
Implementation plans.
Time framed activities.
Targets
Investments and resources
Implementation Monitoring: Performance measurement

9. Monitoring of Implementation of Business plan
To ensure compliance with business plan objectives and targets.
To tell success from failure.
To reward success rather than rewarding under performance.
To learn, correct and rectify.
Compile lessons learned (Lessons can be learned from both success and failure).
It comprises
Monitoring.
Evaluation
If you cannot measure it you cannot manage it?!
Measure ten times, cut once!!!!

10. Development of Monitoring Framework: at the KPI level
Developing a high level monitoring and evaluation framework aims at tracking the progress to achieving plan objectives via selected KPIs.
Example NRW
Objective
Indicator
Target
Baseline value
Outcomes
Implement water loss program
NRW
20%
By end 2019
25%
Decreased water loss, increased revenue, decreased operating costs

11. Development of Monitoring Framework:
KPIs park at the top of the pyramid; a concept theorizes that tracking the implementation of process improvement plans requires a larger number of indicators than monitoring the overall performance using the KPIs.
Therefore, a hierarchal cascading down monitoring system needs to be developed for each objective.
A hierarchal cascading down of the objectives precedes the multi level monitoring system.
Hierarchal establishes the connections between KPIs and lower level PIs even the indicators at the activity level, inputs and outputs.
Lower level and activity indicators contribute in different magnitudes to KPI values.

12. Objective Cascading down
Conceptual framework identifies activities, inputs and outputs associated to a certain objective and illustrates how they are related.
This approach can be used at utility, departmental and sectional levels.
It facilitates cascading down the KPI to functional PIs

13. Objective Cascading down
Implement water loss program
Reduce administrative losses
Reduce physical losses
Unauthorized consumption
Meters inaccuracies
Illegal use reduction
Billing enhancement
Meters replacement
Repairs
DMAs
Active leak control
Pressure
manag.
Checks
routing
update subscribers database
HHUs
Implement meters inspection and replacement program
Network maintenance, renewal and replacement
Establishment of DMAs
plan and implement leak detection program
Installation of pressure loggers, reduction valves, etc

14. Administrative loss PIs
KPI Cascading down
NRW
Administrative loss PIs
Physical loss PIs
Illegal use volume
Billing efficiency (%)
% meters replaced
Water loss per km of network,
Water loss per service connection
% Door step billing
% Estimated billing
Speed of repair
No. of established DMAs
Readers performance,
Daily av. Productivity,
(reading av time, total time in field, etc)
Service connection repair rate
Water network repair rate

15. Objective Cascading down
The case below based on data pertaining to the Commercial Dept. YWC Management Contract (2012)
Objective
KPI
Target
(end of 2012)
Baseline Value (2011)
Outcome
Increase cash flow
Amount collected
By 2.4 M JOD
16.3 M JOD
Increased revenue, Decreased water loss
Increased Cash flow
Increase collection
Increase billed volume
Debts recovery
Field collections
P. Office collection
disconnections
Central collection
Billing enhancement
En. Reading accuracy
Reduce
Illegal use
HHUs
Update subs. base
Routing
Meters replacement
Checks

16. Objective Cascading down
This approach can also be utilized at the departmental level. The case below based on data pertaining to Commercial Dept. YWC Management Contract
Objective
KPI
Target
(end of 2012)
Baseline Value (2011)
Outcome
Increase cash flow
Amount collected
18.7 M JOD
16,271,350
Increased revenue, Decreased water loss
(A 17,309,510 JOD) Amount collected (T 18,271,350 JOD)
(A 81.2) % collection (T 85)
(A 21,317,130) Amount billed (T 22,000,000)
Accounts receivable at cycle end
% central coll.
(A 60%)
%field coll.
(A 30%)
% P. office coll.
(A 10)
efficiency
(A 95%)
Billing
% meters replaced
(A 4.5)
Illegal use volume
(not reported)
% doorstep billing
(86.2)
% estimated readings (8.8)
(166 reading)
Readers Daily av. Productivity

17. Conclusions
Implementation of business plans requires a larger number of indicators than monitoring the overall performance using KPIs only.
Multi level PIs system may serve to attain, at least, the following:
Business process-based relationship among the different departments and sections of the utility.
Enhancement and facilitation of cross analysis of results, hence, aiding the evaluation of performance as well as problems identifying and solving.

18. Conclusions
Multi level PIs system may serve to attain, at least, the following (cont.):
Facilitation target and milestones setting as well as planning performance improvement as to achieve targets and hence objectives.
Guiding the situational analysis and baseline establishment, better resources allocation and formulation of demonstrably sustainable financing plan. In addition, shedding light on the potential most determining step in the progressing towards achieving objectives.
Enhancement of commitment of everyone, departments and sections in the utility work towards achieving the same objectives with the same resources and same intentions in mind of performance improvement.