Stakeholder approach to identification of Critical Success Factors & KPIs WG2 – COST Action Weimar, Germany March 2012 WG2 Title - ‘Success factors and Key Performance Indicators’ Targets PPP implementation by identifying success factors leading to successful projects and KPIs able to monitor performance. Tasks Task WG2-2: Compilation of PPP literature data-base on Barriers and Enablers and KPIs. Task WG2-1: Compilation of PPP Case Study data-base. Task WG2-3: Comparative study to identify Success Factors and barriers to success. Task WG2-4: Comparative study to Identify and Propose KPIs. Task WG2-5: Modelling of correlation between success factors and KPIs. Summary of Work Carried Out Development of Performance Objectives Literature Review Database – Completed Literature Review – Completed Case Study Template – Nearing the end Case Study Database – To be started within the next few months Performance – Different levels AWG2 Mode of Transport KPIs National Perspective Type of PPP Stakeholders Concepts (policy, regulation, etc) AWG1 Stages • Focus: Focus of the project will be on Performance of PPPs itself. So, no comparison will be made with other procurement modes. • KPIs – KPIs will be built upon the Worldbank performance indicators: effectivness, efficiency, sustainable, relevance, impact. Step 1: Performance Definition Step 2: Objectives (at Different levels) Step 3: Criteria (Based on KPIs and CSF) Step 4: Benchmarking Step 5: Performance Analysis and Improvement Purpose Focusing on the critical success factors according to the stakeholder objectives has two main benefits: 1. It enhances the understanding of which factors stakeholders across different countries and different types of transport projects consider important for the success of their PPP projects and 2. It identifies areas that future PPP stakeholders should pay special attention to in order to obtain high performance. Defining stakeholders’ performance objectives including CSF The stakeholders’ performance objectives including CSF are defined using a brainstorming session by the WG2 members. The main focus of this brainstorm is to identifying key performance indicators (KPIs) and critical success factors (CSFs) as successful PPP delivery requires Performance Objectives – Main Stakeholder Groups Private sector objectives Public sector objectives Users objectives Performance Objectives : Sub-Elements • • • • Strategic Operational Financial Risk Things to consider: • Political • Social Private Sector Objectives Objective - diversification into service provision - Increase of business - Innovation (come up with innovative solutions) - IRR - Repayment of equity - Revenue - Leverage - Risk allocation, risk reward ration - Traffic risks (e.g. Greece) - Transparency/Acquiring right set of info - Building trust/ long term relationship - Management of expectations - Regulatory framework - Ongoing monitoring - Institutional reform - User satisfaction - Health and safety Category (element) strategic strategic Strategic/operational Financial Financial Financial Financial Risk Financial/Strategic strategic strategic strategic operational strategic operational strategic/operational PUBLIC SECTOR OBJECTIVES Objective - User satisfaction - Liberalization of the market - Innovation (come up with innovative solutions) - Risk allocation, risk reward ration - Traffic risks - Value for money - Project management skills/experience - Knowledge/technology transfer - forming long term relationship (maximize opportunity) - Building trusts - Management of expectations - Import skills from the market - Development of policy/regulators - Specialize in regulations/procurement - Ongoing monitoring - Institutional reform - Service differentiation - Find the right balance between expectations between private entity, government and user - Health and safety - Introduction of user charging - To minimize costs, maximize user benefits - Efficiency (whole life cycle costing) - Effectiveness - Sustainability Category (element) Operational Strategic strategic/operational financial/strategic Financial/Strategic Financial Operational Operational Strategic Strategic Strategic Strategic Strategic Operational Strategic Strategic/operational strategic/operational Strategic/operational Financial Strategic/financial Operational Operational Strategic/operational User Objectives Objective - Social responsibility - Public awareness - accessibility - value for money - safety - reliability - comfort - minimization of VOCs (time & cost savings) Category (element) operational operational operational operational operational operational operational operational Development of Performance Objectives Stakeholder Performance Sub-Element objective User Reliability Operational Efficiency KPIs Road Lane Availability Port Crago Dwell Time Transport Mode Roads Ports National Perspective Literature Database Literature Review 67 Articles were reviewed by different members of the group. The final results table looks like this (show them an example). Rough results emerged from the literature review (show them an example). Next Stage Case studies – Give some examples using some case studies done by Sheila, Athena and Rosario.