Key Performance Indicators for International Financial Institutions A project between the EIB and Sciences Po
Presentation Outline ● Background ● Themes ● Indicators ○ Internal indicators ○ Operational indicators ● Survey questions ● Challenges we came across
Background, Brainstorming & Themes
Background The team Goal Research process Defining KPIs Key performance indicators (KPIs) vs. common performance indicators Tools used
Mindmap brainstorming
Themes Regional Gender Integration Equality Policy & institutions Health Env. Financial Perform. Efficiency Gender Innovation Equality Human Inclusive Capital & Growth Education Green Infrastructure Economic Development Development Internal Operational
Common Key Performance Indicators (KPIs)
Env. Financial Perform. Efficiency Gender Innovation Equality Internal
Internal indicators: Financial efficiency Cost income ratio Current ratio
Internal indicators: Gender Equality Number of training programs $ Gender Balance Gender Wage Gap for innovation promotion The percentage of women in management Difference in wages between men and women positions. (special focus on premiums and bonuses) As a percentage.
Internal indicators: Innovation Number of training programs Level of employee’s innovativeness for innovation promotion Number of ideas submitted by employees that Number of training programs put in place to contribute to the progress of different projects/ promote innovation among employees Total number of projects in a fiscal year
Internal indicators: Environmental performance Number of training programs for innovation promotion GreenMetric Score 21% 15% 18% A numerical score developed by the University Climate & energy Setting & Waste of Singapore. Assessing institutional infrastructure environmental performance in six categories. Major universities participate (e.g. University of Oxford, University of Life Science and Natural 10% 18% 18% Resources in Vienna, … ) Water Transportation Education
Regional Gender Integration Equality Policy & institutions Health Human Inclusive Capital & Growth Education Green Infrastructure Economic Development Development Operational
Operational indicators: Regional Integration Cross-border transport links Cross-border fundings Defined as number of roads, rails Total sum invested for cross border and regular flights connecting the projects (involving several countries country to its neighbors. For in the region), ppp: A project is example, if the building of a new taking place in a border region and bridge linking two countries is part stakeholders from country A and of a project, the “cross border country B participate. transport links” will increase.
Operational indicators: Gender Equality Gender dimension of funded projects Number of funded projects submitted with, at the head, at least one woman or Do the bank finance projects targeting gender equality ? We observe whether or not there is a selection bias on the part of the IFIs when selecting the projects to be funded (proportion)
Operational indicators: Green Economic Development Green projects, measured in $PPP : Cooperation between IFIs on quantitative aspect aiming at green sustainability : qualitative measuring the number of green aspect reflecting whether or not projetcs containing the goal of do IFIs cooperate with each “improving human well-being and other in order to promote Green social equity, while significantly Sustainability.This an indicator reducing environmental risks and would be measured by looking ecological scarcities. ” . It’s the Ratio at initiatives undertaken by IFIs of the among of money (in dollar- in order to work in common on PPP) spent on green projects green economic topics such as compared with the overall forums on the issue or common spending. funding projects.
Operational indicators: Inclusive Growth Finance for MSMEs Poverty reduction Mobilised funding for the Estimated number of people lifted following categories out of poverty ● Micro enterprises Defined as, no longer living below: ● Small enterprises ● the national poverty line ● Medium enterprises ● The absolute poverty line, defined by WB at 1.90 $PPP per person per day
Operational indicators: Health Trained Healthcare Access to Health Providers Measured as: Measured as: ● The number of people who got access to ● An increase in the number of trained essential medicines (WHO or national health workers, such as nurses, clinical lists) officers, and medical doctors as an absolute value or per 1,000 people
Operational indicators: Human Capital & Innovation Mobilised funding for innovation Quality Education Project Performance environments, mobilized through: Grade , similar to a school grade (form 1- 6). ● seed funds ● incubators (provider of office space, E.g. used by the IFAD, criteria: support staff and equipment for new ● Rural poverty impact, with four businesses) impact domains ● startup accelerators (fixed-term ● Project performance mentorship programs, investment in ● Other performance criteria exchange for equity) ● Overall project achievement ● follow-on funds ● Performance of partners (IFAD, ● business angels funds governments) ● equity-crowd platforms ● and venture capital funds Harmonization work is happening through the ECGroup. E.g. Boost Africa by AfDB
Operational indicators: Infrastructure Development Level of investment in a Growth of the number of people fiscal year benefiting from access to ICT / fiscal year This indicator helps the Mobilised funding allocated institution to assess its to infrastructure projects in contribution in improving a fiscal year . access to mobile, wire-line services and internet based The infrastructure projects services. put in place in a fiscal year include the following areas: - Rail lines - Water and sanitation - Transport - Telecom - Energy - Other
Operational indicators: Policy and institutions Good Governance of Institutional Support Funded Projects Measured as: Measured as: ● The percentage of total funded projects ● Mobilised funds directed into the that explicitly consider good governance following fields: rule of law and practices. accountability, safety, economic stability ● Good governance practices include: and effectiveness, anti-corruption, human transparency, accountability, and rights, and public welfare responsiveness to the needs of the people
Survey
Survey: Structure 1. The context of performance assessment: general questions 2. The performance of the IFIs: the internal indicators 3. The impact of the IFIs’ activities: the operational indicators
Survey: General questions Questions 1 and 2: setting the ground for common performance evaluation - Evaluation Coordination Group (ECG), since 1996 - PARIS21, since 1999 - Rome Declaration on Harmonisation, in 2003 - Common Performance Assessment System (COMPAS), since 2005, by Managing for Development Results (MfDR) - Paris Declaration on Aid Effectiveness, in 2005 - Accra Agenda for Action (AAA), in 2008 - Sustainable Development Goal 17, in 2015
Survey: Internal indicators Questions 1 to 4 Internal Indicators % of women in Innovation Cost-income ratio GreenMetric Score management schemes
Survey: Operational indicators Question 1: Classification Do you think the framework in figure 2 would fully and appropriately cover your activities? If no, please elaborate briefly. Source: COMPAS, 2014
Survey: Operational indicators Questions 2 to 4 Examples from existing IFIs’ Operational Indicators performance indicators - EIB : “Estimated EFSI (IIW) facilitated” - AfDB : “Mo Ibrahim Index of Harmonized African Governance” Investment Number of evaluation - IsDB: “people reached with mobilized people reached framework basic social services”
Challenges
Challenges Main challenges: ➔ Ability to collect data ➔ Credibility of the data ➔ Variables have different time scales: ◆ Can all the indicators be measured at the same time to evaluate the impact of a project? ◆ Example: level of investment in a fiscal year vs poverty reduction ➔ Exogeneity
Thank you.
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