Module 19: Monitoring and Evaluation

19.1. Why monitor performance?

Monitoring and evaluation is a routine management methodology, not just an ad hoc activity instituted for the purposes of an external performance audit. Being a part of the management contract stage, it should play a facilitative role in generating effective communication and interaction between project partners and other stakeholders, which is essential for iterative problem solving and adaptive project management.

Performance monitoring allows the local government (municipality) to ensure that the services being provided are consistent with the contract. The more activities a contract covers, the more sophisticated its incentives should be for efficient performance by the contractor, and hence the more sophisticated will be the necessary regulation. All service providers should be subject to effective regulation, benchmarking and monitoring. They should also be efficient, accountable and protected from inappropriate pressures.
It is likely that the municipality’s role in actual operations will be minimal, but time and effort during this phase should be redirected towards monitoring the performance of other partners. It is essential to ensure that the contract continues to meet the municipality’s needs, and that the contract ensures the effective management and supervision of the day-to-day matters.
Armed with measures of performance, local government managers are in a position to formulate policy and implement plans that are relevant to any problems they come across and, conversely, that avoid unnecessary action.

Performance monitoring needs to take place against a number of clearly defined indicators; performance targets can be developed for a particular period and for the local context, which enables managers to identify areas for improvement.

The operators of the service should be required to:

publish key performance indicators regularly;

provide convenient consumer inquiry and complaint mechanisms; and

consult consumers regarding major new investments through willingness-to-pay surveys and public forums.

In addition, the municipality could establish its own mechanisms, such as a formal consumer committees and surveys, for assessing public opinion about services.

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