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.

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

Summary of Work Carried Out

Performance – Different levels

National PerspectiveNational Perspective

Mode of TransportMode of Transport

Type of PPPType of PPP

StakeholdersStakeholders

StagesStages

Concepts (policy, regulation, etc)

Concepts (policy, regulation, etc)

• 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.

AWG1

AWG2

KP

IsK

PIs

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

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.

Purpose

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

Defining stakeholders’ performance objectives including CSF

Private sector objectives

Public sector objectives

Users objectives

Performance Objectives – Main Stakeholder Groups

• Strategic• Operational • Financial • Risk

Things to consider: • Political • Social

Performance Objectives : Sub-Elements

Private Sector Objectives

Objective Category (element) - diversification into service provision strategic - Increase of business strategic - Innovation (come up with innovative solutions) Strategic/operational - IRR Financial - Repayment of equity Financial - Revenue Financial - Leverage Financial - Risk allocation, risk reward ration Risk - Traffic risks (e.g. Greece) Financial/Strategic - Transparency/Acquiring right set of info - Building trust/ long term relationship strategic - Management of expectations strategic - Regulatory framework strategic - Ongoing monitoring operational - Institutional reform strategic - User satisfaction operational - Health and safety strategic/operational

Objective Category (element) - User satisfaction Operational - Liberalization of the market Strategic - Innovation (come up with innovative solutions) strategic/operational - Risk allocation, risk reward ration financial/strategic - Traffic risks Financial/Strategic - Value for money Financial - Project management skills/experience Operational - Knowledge/technology transfer Operational - forming long term relationship (maximize opportunity)

- Building trusts Strategic

- Management of expectations Strategic - Import skills from the market Strategic - Development of policy/regulators Strategic - Specialize in regulations/procurement Strategic - Ongoing monitoring Operational - Institutional reform Strategic - Service differentiation Strategic/operational - Find the right balance between expectations between

private entity, government and user strategic/operational

- Health and safety Strategic/operational - Introduction of user charging Financial - To minimize costs, maximize user benefits Strategic/financial - Efficiency (whole life cycle costing) Operational - Effectiveness Operational - Sustainability Strategic/operational

PU

BLIC

SEC

TO

R O

BJE

CTIV

ES

User Objectives

Objective Category (element) - Social responsibility operational - Public awareness operational - accessibility operational - value for money operational - safety operational - reliability operational - comfort operational - minimization of VOCs (time & cost savings) operational

Stakeholder Performance objective

Sub-Element KPIs Transport Mode

National Perspective

User Reliability Operational Road Lane Availability

Roads

Efficiency Port Crago Dwell Time

Ports

Development of Performance Objectives

Literature Database

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).

Literature Review

Case studies – Give some examples using some case studies done by Sheila, Athena and Rosario.

Next Stage