Developing and Implementing a Performance Measurement System: Volume II

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The primary purpose of this research was to provide methods and tools that enable a water/ wastewater utility to develop and implement a performance measurement system based on a demonstrated proven approach. To achieve the purpose, the research was conducted in three phases: Core research on existing and applicable frameworks for performance measurement with experience from utilities and other government organizations, as well as outside business and industry, on leading practices in performance measurement. Steps to develop and implement performance measurement that uniquely fit water/wastewater utilities were defined to be piloted by selected utilities in Phase II. Demonstration pilot projects for developing and implementing performance measurement were carried out over a 12-18 month period at four water and wastewater utilities that were selected from a group of over a dozen utilities that applied to be pilot demonstrations, based on a mix of utility type, size, and experience with performance measurement. Research results from the pilots and "lessons learned" were applied to adjust the piloted process. Transfer of the knowledge and methods from these projects was previously shared in WERF/WEFTEC workshops and a web-conference. A process (seven-step methodology) was developed based on a Balanced Scorecard approach to develop and implement performance measures both at the enterprise (utility-wide) level and team-based level. Ways to align and coordinate measures throughout the organization were defined for process-based and initiative-based scorecards. The testing of this approach through the utility pilots led to further recommendations for involvement, education, communication and commitment of utility participants for successful performance measurement.