Performance Assessment and Business Plan

Objective of this Activity:

Although the company has been in operation for 4 years, WSSP has yet to formulate a formal “Business Plan” and an associated “Results Framework”. In the absence of such docimnet most decisions are adhoc and reactive which has been effecting the perforace  of WSSP. The WSSP management therefore intends to prepare a Business for the period 2018-2023  ,  based on its  its approved manadate, to deliver service in an orderly manner.. The “Business plan” will include a ‘Results Framework” with clear KPIs for internal monitoring and bench marking with other national/international utility companies operating in the same sector.

The proposed well-structured and practicable  5 year Business plan will guide the  WSSP’s operations towards success, and which may be used as tool by government, BoD and management to assess the performance of respective tiers. It will also guide the management top conduct its business in an orderly, planned and professional manner.

For a comprehensive  business plan the performance assessment of WSSP is very crucial and therefore the firm will be required to first undertake  the performance assessment of WSSP which will feed into the business plan exercise.The objective of performance assessment will be to develop a performance evaluation framework (for GoKP, WSSP BoD and WSSP senior management) and propose forward looking recommendations to improve WSSP performance based on last 4 years operations.

The firm will assess the performance of WSSP against economy, efficiency and effectiveness of its operations. The assignment will evaluate the performance and capacity of the staff, check existing system for services and check operational procedure.

Project Key Information:

Project Location Peshawar
Project Name a.      Performance Assessment of WSSP

b.      Development of Business Plan for WSSP

Project reference number WSSP/SDC/05/BP
Donor(s)/ funding sources SDC
Project duration 7 months
Implementing agency and partners WSSP
Beneficiaries Residents of all Urban UCs under the jurisdiction of WSSP

Phase I: Performance Assessment of WSSP

Corporate Background of WSSP

In 2010 Water and Sanitation Program (WSP) of World Bank, supported the Government of KP (GoKP) throgh a Technical Assistance on the utility reform agenda to make an informed decision to improve water and sanitation services in Peshawar – the provincial capital of the with a population of over 2 M. In December 2013 the utility – Water and Sanitation Services Peshawar WSSP – was incorporated with Securities and Exchange Commission of Pakistan (SECP) and was operationalized as as Pakistan’s 1st corporate governed and autonomous urban utility.

GoKP used the Corporatization as a tool to transform water and Sanitation functions to mimic principles (efficiency, efficacy, autonomy, financial viability and accountability) of a private company. It was aimed that a WSSP shall be able to demonstrate positive or improved performance results by emulating the behavior of a private company.

The Chief Executive Officer (CEO) of the utility took over in  2014 and the utility was operationalized in September 2014 after acquiring asset and staff, signing of services and asset management agreement (SAMA) with the city government and recruitment of new managerial staff.

WSSP is headed by CEO who reports to the Board of Directors. Board of Director as a governing body is overall responsible for monitoring the performance of WSSP by regularly conducting progress reviews through meetings, allocating required resources, providing guidance to the management in improving the service delivery ensuring the provision of services effectively and efficiently as per mandate of WSSP.

WSSP is operational since 2014 but its  performance has been under criticism from internal and external stakeholders.  This could also be because the role of the key stakeholders (GoKP, BoD and WSSP management) is neither defined explicitly nor measured in last three years to assess their respective performance. Also, there exist no systematic evaluation and performance assessment system in WSSP which is “must have” for corporate entity. In absence of such system and defused accountability the blame game start and responsibilities (for failure) are shifted one to another. The WSSP and its BoD are interested to establish a performance measurement system and process to evaluate WSSP (senior staff) performance on regular basis and publishing it widely under KP “Right to Information” Act.

GOKP has been placing sizable funds from its development and non-development budgets to WSSP since 2014. It is felt within GOKP that it high time to undertake thorough Performance assessment of WSSP to ascertain whether it (WSSP) is meeting the vision and concept of corporatization and is yielding results as per corporate principles.

The successful firm will carry out performance assessment of WSSP, its stakeholders, recommend  their role and responsibilities and establih a perforamve assemsnsnst frameowrk with Key Performamce indicators (KPIs).

Scope of Work:

They proposed scope of work of this  activity is to review whether WSSP prescribed to key corporate characteristics, such as: a) Sound corporate governance; b) Legal status; c) Internationally acceptable financial management and accounting practices covered under law; d) Customer orientation; and e) Effective and transparent use of resources.

The scope of work comprises of assessment and review, analysis for lessons, forward-looking recommendations with options/tools for implementation and a comprehensive Performance Assessment Framework with Key Performance Indicators.   .

Deatail of activities to be taken during this phase are  as follows:

  1. Identification of gaps in operationalization of WSSP approved at the inception stage 2014;
  2. Review the role and performance of GoKP (LGE&RD, PnD, DoF) in operationalizing and sustaining operations of WSSP as corporate entity and proposed recommendations for improvement;
  3. Review the composition and role of BoD (their corporate role as per SECP guidelines and global corporate principles) in effective oversight and policy support to WSSP management and proposed recommendations for improvement;
  4. Review the current institutional structure in the light of WSSP mandate including its organogram and proposed recommendations for improvement;
  5. Review the HR Policy and identify key lessons and shortcomings;
  6. Review and assess the turnover of staff (on senior positions) and its impact on the operations and proposed recommendations for staff frequent turnover;
  7. Review of the staff performance appraisal system of WSSP;
  8. Review the efficiency of operations w.r.t expenditure and income and identify cost cutting/efficiency improvement measures;
  9. Review the fiscal aspects of WSSP specially w.r.t revenue enhancement, recovery, measures taken in reducing reliance on subsidy and propose recommendations for overall financial improvement;
  10. Review the performance of utility and staff in taking initiatives for introducing new technologies, innovative ideas for improved service delivery;
  11. Review the minutes of meeting of BOD, frequency of meetings held, participation, input and involvement of members in the board meetings. Assess the effectiveness of BOD role in providing guidance for setting targets (improved performance) and policy direction. The assessment should be supported by recommendations for improvement;
  12. Recommend measures for WSSP and Cantt Board partnership on municipal services (ground water withdrawal, final Solid Waste Disposal and sewerage of Cantt Board);
  13. Assess the compliance of WSSP with SECP and identify gaps; and
  14. Formulate a Performamve Assessmnet Framework for (upward) accountability
    • of staff to management;
    • of management to BoD;
    • of BoD to GoKP; and
    • and (down) accountability of WSSP to citizens including With KPIs

Phase II: Development of Business Plan

Business plan development will follow a standard approach and cover the  following steps:

  1. Assessing past history of WSSP performance and operations against its mandate and the environment in which its has been operating
  2. Establishing organisational direction. Reviewing and improving the  vision, mission and objectives statements is available.
  3. Formulating the organisation’s Business plan.
  4. Development of a Results Framework with KPIs for internal monitoring and benchmarking with other large urban utlity companies
  5. Implementing the strategy. (WSSP & Third Party Monitors)

The consulting firm’s primary focus in this phase will be on steps 1, 2, 3 and 4 i.e. conducting a situational analysis, formulating the Business plan and an associated  ‘Results Framework with KPIs.  . Step 5 is the role of WSSP’s management which may also entail a 3rd party monitoring role for assistance with piloting the monitoring framework .

The consulting firm will be responsible for  the following main activities in this assignment:

  1. Review the WSSP’s Services and Asset Management Agreement (SAMA), Memorandum of Association (MoA), Articles of Association (AoA), PC-I and associated documents; to assess the extent to which these have been complied. WSSP will provide access to monthly and quarterly progress reports from the date of inception.
  2. Undertake a SWOT analysis exercise with WSSP Board, core management and other stakeholders.
  3. Engage in consultations and document expectations of the key stakeholders including WSSP Board members, heads of all WSSPs, key donors such as SDC, WB, UNICEF, USAID, ADB and other public sector and civil society stakeholders to build ownership in the development of business plan .
  4. Review and revalidate the Vision, Mission, Objectives and core business activities previously developed/approved by WSSP.
  5. Clearly define the activities (under all three mandates Water, Sewerage & Drainage and Solid Waste)  and standard of services that WSSP intends to perform in future.
  6. Prepare an objective 5 year business/ with defined targets and KPI
  7. Prepare WSSP’s Strategic Results Framework for monitoring the implementation of business plan. Thi will also include Clearly identifying the responsibilities of monitoring and reporting against the compliance of buniness Plan. The consultant will also develop M&E templates and propose a M&E process as well.
  8. Develop the 1st year detailed work plan for converting the organisational Business plan into operational plans for senior management and the core organisational units.