A process for evaluating csr strategies, practices and programs

Running Head: A Framework for Measuring and Monitoring CSR Strategies, REV April 2014

Professor Brian L. Maruffi, Yeshiva University, Sy Syms School of Business

EVALUATING THE EFFECTIVENESS OF CORPORATE SOCIAL RESPONSIBILITY PRACTICES AND PROCESSES

A CSR Continuous Framework for Assessing, Monitoring and Improving CSR Programs, Practices, Processes and Strategies

Brian L. Maruffi, Ph.D. Yeshiva University

Sy Syms School of Business [email protected]

April 16th 2014

Accepted for Publication:

The Journal of Global Business Issues, April 2014

mailto:[email protected]

Running Head: A Framework for Measuring and Monitoring CSR Strategies, REV March 2014


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MEASURING THE EFFECTIVENESS OF CORPORATE SOCIAL RESPONSIBILITY AND

PRACTICES AND PROCESSES

Table of Contents Abstract: Introduction—Why Monitor and Measure CSR Programs and Practices 1. A Framework for Monitoring and Measuring CSR

1.0 Continuous Improvement 1.2 Continuous CSR Improvement defined 1.3 Continuous Improvement Model

2. Phase #1: Scanning 2.1 Concept and Definitions 2.2 Purpose and Objectives

2.3 Critical Issues & Questions 2.4 The Strategic Scanning Process 2.5 Critical Tasks, Activities and Outcomes

3.0 Phase#3: Forecasting Concepts and Methods 4.0 Phase#4: Assessment Concepts, Process and Outcomes 5.0 Phase #5: Targeting Concepts, Process and Outcomes 6.0 Phase#6: Remediation, Concepts, Processes, Tools and Outcomes

7.0 Conclusions: Linkages between 6 Phases of the Continuous Improvement

Process

8. Implementation—How to Make it Work

9. Conclusions and Applications

10. References

ABSTRACT Whereas some companies have built comprehensive CSR systems, while others have introduced only limited efforts to create products and programs that protect the environment and the community. Most US and European companies have been struggling to determine whether they are have effective CSR strategies, programs and measures. Clearly, the two biggest challenges are 1) Balance the needs of the community with the economic demands and expectations of shareholders and 2) Accurately determining the long-term positive impact of CSR strategies and programs. Currently, there is a lack of universally accepted standards and measures required to evaluate the relative and/or sustainable impact of alternative CSR programs and interventions. This paper presents integrated processes that can be used for monitoring and evaluating Corporate Social Responsibility Strategies. By implementing these processes and associated metrics provides companies with a framework and methodology for benchmarking their CSR policies, programs and interventions. The approach outlined in this paper, provides a basis for systematically optimizing benefits of deploying a wide range of alternative CSR practices. A seven step CSR Strategy review process provides regulators, the community, operating managers and senior executives with a more transparent understanding of a company’s CSR position and identifies gaps between maintaining the status quo and more effective CSR practices and programs. This set of processes facilitates better more transparent communication, promotes organizational change and can result in dramatic performance improvement through use of best practices, better customer perceptions.



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Introduction With the introduction of innovative CSR strategies, a company declares its willingness to contribute not only to improving the financial bottom line but also to focus on improving social and environmental problems. Senior Executives are often confronted with the question, where CSR involvement ends, where it begins? and how the firm can optimize the benefit of CSR pro9grams without increasing internal policies, bureaucracy and cost.

Continuous Improvement is defined as a measurement process that facilitates and enables

organizational change and dramatic performance improvement through use of best practices,

customer focus and external value-added perspectives. SRO concentrates on quality

management processes and is based on evaluating seven critical factors; leadership, strategic

planning, customer and market focus, information and analysis, human resources focus, process

management and business results.

CSR Continuous Improvement Process

CSR Continuous Improvement Framework:

The CSR continuous improvement process consists of 6 phases: 1. Scanning—Identifying broad, early signals of internal and external environmental trends or changes.

22.. Monitoring— Detecting meaning or the significance of changes in observable social, operational and performance indicators, trends or patterns.

3. Forecasting— is the process of predicting future events. This stage involves the development and projection of anticipated outcomes based on-going observation derived from monitoring significant operational or social trends or indicators. 4. Assessing—Evaluating the relative significance or importance and potential impact based on an

analysis of current or projected changes in relevant indicators and trends 5. Targeting—Identifying operational/performance/functional areas within that require significant

improvement and assessing magnitude of deviation from established standards 6. Remediation—Developing corrective action plans, implementing these plans and evaluating

results/actual improvement.



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4

1-Scanning

4-Assessing

CSR Assessment Framework

Critical Success Factors

Strategies

Management

Operating Practices

Processes

Policies

Transactions

Phase#1: Scanning

1.1 Core Concept & Definition: The purpose of scanning is to alert the organization, board of directors and senior managers to issues or situations that can have a significant impact on the effectiveness and/or quality of management, operational and social responsibility issues and practices. Scanning serves a preventative function. By identifying early warning signals, managers will have as much time as possible to determine appropriate alternative courses of action. Scanning is a first step towards exploring and identifying opportunities to improve management practices, programs, compliance with policy, and processes. Scanning surfaces early warning signals alerting managers, units and departments about important trends and events that could have either a positive or negative impact on employees and on the organization. Scanning is the first phase of the management improvement process. Scanning is defined simply as Scanning—Identifying broad, early signals of strategic, social, performance and operational trends or changes. It is the basis for effective monitoring and corrective action. This first stage serves as the foundation for all subsequent stages in the SOR. Scanning focuses on identifying current and/or potential strategic/social/operational trends, patterns or changes that need to be addressed by units, departments, managers or the entire organization.

1.2 Critical CSR Issues and Questions: There are several key questions and issues that should be addressed during the CSR scanning phase:

1. Level of Analysis--What is the appropriate unit of analysis and segments of the within the organization (units, departments, locations or levels) and outside the organization (environmental/constituencies) that need to be evaluated?

CONTINUOUS

IMPROVEMENT



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2. Program Scoping--What current indicators or trends are used to assess the strengths and weaknesses of management in the organization?

3. Stakeholder Sponsorship—who are the key internal and external stakeholders/groups that need to be targeted.

4. Performance Measurement--Which internal and external performance measures, patterns, trends, or indicators are most important and relevant to the organization?

5. Identification of Trends and Critical Success Factors--What is the likely impact of negative or positive trends on the health, safety and effectiveness of the organization and its internal/external constituencies short-term and longer term?

1.3 Assessing the effectiveness CSR Operational Scanning Processes: An effective scanning process should be based on frequently updated data from reliable sources of information. Cross-functional teams or panels consisting of internal managers and external experts/stakeholders can be used to decide which information should be scanned and interpret and/or validate patterns or trends that are uncovered in the scanning phase. Multidisciplinary task groups can also be used to identify which environmental, social and operational issues or trends are most important or are likely to have the greatest financial, social/community or strategic impact on the organization and/or stakeholders. Scanning can identify early warning signals such as potential issues or changes into the monitoring and forecasting process. Scanning is especially useful when changes take time to unfold or emerge to a point where there is a significant impact on the organization. It can be used to provide managers, units or departments with valuable lead-time for examining implications and considering alternative courses of action. Most changes in performance/operations/communities do not take place in days or even months, but evolve gradually over time. Certain changes or trends may take years to develop and unfold. Scanning can reveal indications of early-stage changes in populations, social values, environmental trends, community/demographic composition, workforce composition or longer-term changes in performance, organizational flexibility/capability, and turnover and customer/stakeholder satisfaction. Once the organization becomes aware of specific trends, changes or warning signals, it can be monitored and tracked and forecast their impact on the organization.

1.4 Critical CSR Monitoring Process Tasks & Activities: The Scanning process consists of three critical tasks:

1. Establishing Scope--Determining the scope and range of relevant data and sources of information.

The primary objective is to narrow down the scope so that it is more likely that important early warning signals will not be missed;

2. Interpreting Trends—Integrating and making sense out of relevant operating/social performance indicators and other relevant data is a critical component of scanning. The primary objective here is to determine the meaning of integrated data and identifying important correlations or relationships between organizational/social performance indicators that signal future events.

3. Selection—this involves evaluating the relative importance of indicators or precursors. Those indicators with the greatest relevance or importance will selected for further monitoring, forecasting and assessment at later phases of the stakeholder/social/operational assessment process. Only, the most relevant and reliable signals or performance indicators should be considered for further monitoring, forecasting or assessment. The result from phase#1 is the identification critical area, trends and indicators that should be monitored. Scanning can be a continuous process or follow an annual or bi-annual cycle.

Phase#2—Monitoring 2.1 Monitoring Definition and Objectives

The process of verifying a number of outputs and results (pre-selected and well-defined) together with the process through which these results have been obtained In order to secure valid and relevant information on work in progress on an ongoing basis



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CSR Monitoring Objectives: To ensure that:

I. Established social responsibility/operational standards, norms an specifications are reviewed;

II. Manage environmental/operational regulations, rules, policies, delegated authority and procedures effectively;

III. Ensure that social and operational performance targets are met; IV. Support and guidance is provided where required V. Best practices across organizations, constituencies, communities, units,

departments, offices and throughout the organization are shared and communicated internally and as relevant, externally.

VI. Align social responsibility philosophy, standards and practices (internal and external) with operational measures, systems, processes and results

2.2 Monitoring Process: Core Concepts:

Monitoring is an essential function of modern management is becoming an integral part of all activities. It is the process of tracking and verifying, on an ongoing basis, a number of pre-selected, well-defined outputs and results, together with the processes through which those results have been obtained, with the aim of securing current, valid and relevant information on work in progress in order to ensure that:

a) Established standards, norms and specifications are respected; b) Regulations, rules, policies and procedures are adhered to; c) Performance targets are met; d) Support and guidance is given where required; e) Best practices are shared throughout the organization.

Social Responsibility/Operational Performance Monitoring Process involves periodic observation and tracking of changes in HR management functions, practice, indicators or performance over time. Monitoring is defined as detecting meaning or the significance of changes in observable performance indicators, trends or patterns. Organizational Performance Monitoring is focused on the evolution of trends such as demographic changes in the workforce, staff turnover, absenteeism, retirements, vacancy rates and workforce diversity. Trends, events, or changes in these areas will surface and be identified during the scanning process or brought to the organization’s attention through benchmarking and obtaining best practice data from other organizations. Monitoring and scanning serve different purposes in the CSR continuous improvement process. The purpose of monitoring is to assemble sufficient reliable performance data that can be used to discern or validate whether specific patterns of changes are emerging. Patterns consist of a complex or set of discrete trends. When several trends or indicators are connected and evaluated, patterns can be detected. Monitoring ensures that intuitive or superficial judgments about weak signals observed during scanning undergo more careful scrutiny and are then communicated to the heads of units, offices or departments for verification. These initial judgments need to be tracked for confirmation, elaboration, modification or invalidation. The evaluation of indicators and discrete data is much more focused, specific and detailed in the monitoring compared to initial scanning. The analysis of early warning signals from inside or outside of the organization provides a general sense of the patterns that should be reviewed periodically over time. As the monitoring phase continues, trends accumulate into patterns that evolve into a picture of the changes identified initially during scanning. In the monitoring process, trends observed superficially during scanning are clarified. As more detailed and specific data are collected, tracked and analyzed, it becomes feasible to begin to locate the source of problems, trends or changes. Effective monitoring requires integration and interpretation of a variety of data and indicators from multiple sources. As trends or patterns of change in the data are tracked, judgments and conclusions can be verified.



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2.3 The Monitoring Process: Guiding Principles—a comprehensive, integrated monitoring system is based on the following guiding principles:

1. Monitoring is a management process with the purpose of: a. Providing assistance to management, managers and business units who are

responsible for managing the organization’s, corporate social and operational responsibilities;

b. Monitoring focuses on continuous improve of management practices to achieve better results through, the relevant management information, early warning signals and guidance, which would allow for remedial action wherever possible;

2. Monitoring requires partnership, clear communication and collaboration between stakeholder/constituencies/regulators and the organization;

3. Monitoring must be a proactive and ongoing process that should be integrated and implemented throughout the entire enterprise/organization;

4. Monitoring must be incorporated into all relevant aspects of management activities in order to elicit information on: achievements or lack thereof; adherence to standards, norms and specifications; and compliance with regulations, rules, policies and procedures;

5. Monitoring must follow clearly defined methodologies and must utilize and be supported by appropriate mechanisms and tools. Identifying useful, easily available and current information, data and reports depend on the support of a strong information technology capacity;

6. Effective monitoring requires dedicated resources, supported by specialized teams of staff with the necessary skills, knowledge and experience, using SOPs to effectively manage within the context of a clearly defined program of work.

7. Monitoring is a process of observing, and tracking relevant performance, stakeholder sponsorship, and providing management and intervention teams with information about

trends in operations/functions/process and environmental functions that will enable management and managers to effectively respond to and address these issues. The long-term goal of monitoring aims to continuously improve management practices and achieve better results. This is achieved by scanning, interpreting and evaluating relevant management information and identifying early warning signals, which should allow for timely remedial action.

2.4 Distinguishing Auditing From Monitoring Monitoring and auditing are very different ways of approaching operational/organizational effectiveness and improvement. The goal of auditing is to enforce or reinforce compliance with established organizational policies, rules and procedure. It is not focused on identifying best practices or recognizing units/departments for finding effective solutions. Auditing is focused on evaluating whether operating processes, policies, practices or procedures are in compliance or meet established or agreed on standards. The auditing process is an independent evaluation of whether there have been serious violations or departure from stated rules, policies and procedure. The goal of auditing is to reduce or eliminate non-compliance and/or establish penalties for not conforming to standards. The auditor represents the interests of the organization and by definition is expected to be an objective evaluator and as such, someone in this role would not be expected to collaborate with the members of units or departments that are being scrutinized. On the other hand, the objective of monitoring, on the other hand is to prevent non-compliance and assist managers, units and departments in finding solutions to underlying problems that cause deviations from standards. Monitoring is a process that focuses on creating continuous improvement and organizational revitalization. A key role of the monitor is to facilitate communication and facilitate sharing of best practices and lessons learned between units, offices, functions, levels and departments.



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While auditing processes are focused on maintaining the “status quo”’ or a one-size fits all approach, the focus of monitoring is to enable managers and units to find the best solutions that fit their particular problems and circumstances. While, monitoring may lead to improved results or corrective actions, the goal of monitoring is to observe and report trends and patterns, which could have a negative impact if preventative action is not taken. In order effective, monitoring must be a partner-based endeavor. Monitoring is an integral part of the continuous improvement process. When combined with forecasting and assessment, it should aim at anticipating problems before they occur. Monitoring must be incorporated into all areas and functions of human resources management. This will allow the organization to assess performance improvement and best practices as well as identify lapses, or targets or areas for improvement in practices, processes, policies and procedures. Monitoring must follow clearly defined methodologies and be supported by appropriate mechanisms and tools. To ensure the usefulness of data and reports, it is essential that monitoring be supported by a strong information technology capacity.

2.5 Monitoring Review Process: Some Critical Issues and Questions Several critical issues need to be addressed during the monitoring process:

1. Which types of social responsibility and operational data, information or indicators are most or least relevant or important?

2. What sources of data are most accurate, up to date and useful? 3. Which indicators, trends and data fit together to form a pattern? 4. How can inconsistencies or gaps in the data be interpreted or reconciled?

2.6 Monitoring Process--Expected Results and Outcomes Monitoring results in several key outcomes for the organization:

1. Specific descriptions of events or patterns in the data that can be forecasted or used for scenario analysis.

2. Identification of trends or patterns that require additional monitoring (observation) or tracking to determine if the pattern is cyclical, sequential or due to chance.

3. Identification of early warning signals that require scanning in the future, 4. Evaluating the rate or speed of change in trends, how quickly or slowly are patterns

emerging or changing 5. Evaluating the magnitude and direction of trends

The results of monitoring are not limited to providing inputs to forecasting. Monitoring can be used to uncover and identify apparent trends that were not included in the scope of the original monitoring program.

Phase#3--Forecasting: 3.1 Definition and Concepts

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mmaaggnniittuuddee aanndd ccoommpplleexxiittyy ooff cchhaannggeess tthhaatt ccaann hhaavvee aa ssiiggnniiffiiccaanntt lloonngg--tteerrmm iimmppaacctt oonn uunniittss,,

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vveerrssuuss sshhoorrtt--tteerrmm ttrreennddss)).. TThheerree aarree 33 TTiimmee HHoorriizzoonnss ffoorr ffoorreeccaassttss;; (b) SShhoorrtt--rraannggee ffoorreeccaasstt----UUpp ttoo 11 yyeeaarr,, ggeenneerraallllyy lleessss tthhaann 33 mmoonntthhss---- SShhoorrtt--tteerrmm ffoorreeccaassttss

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yyeeaarr;;

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ddeecciissiioonnssDirection—describes the persistent, overall upward or downward patterns in the data or indicators. For example are transfer or mobility rates increasing or decreasing over time.

(f) Speed—describes how fast a trend is changing—is projected trend changing slowly or quickly

(g) Volatility –Is the relative level of stability or unpredictability of patterns or trends. The greater the volatility, the less predicable or reliable the forecast.

(h) Intensity—describes the strength of the forces or factors (underlying causes) producing or driving projected trends or patterns

(i) Magnitude—refers to the degree of potential impact that increases or decreases in projected trends or patterns will have on staff, performance or the organization.

3.2 Types of Forecasts: A. Qualitative Forecasts—is uusseedd wwhheenn ssiittuuaattiioonn iiss vvaagguuee aanndd lliittttllee ddaattaa eexxiisstt

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ssoommeettiimmeess aauuggmmeenntt bbyy ssttaattiissttiiccaall mmooddeellss---- Involves small group of high-level managers, group of managers estimates future trends by working together relying on their management knowledge and experience

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mmaannaaggeerrssEmployee or Management Surveys--AAsskkss eemmppllooyyeeeess,, mmaannaaggeerrss aanndd//oorr eexxppeerrttss

tthheeiirr ooppiinniioonnss aabbuutt pprraaccttiicceess;; FFoorr eexxaammppllee –– Ask decision makers about corrective action plans, Ask line managers who score higher on strategic performance indicators what they do differently from mangers in lower performing units, offices or departmentsDemographics--Estimates of trends or patterns from experts or line managers are reviewed for reasonableness, and then aggregated—data are combined at office, unit, and department levels. Can be combined with surveys to validate or confirm results

B. Quantitative Forecasts Quantitative Forecasts are usseedd wwhheenn ssiittuuaattiioonn iiss ‘‘ssttaabbllee’’ aanndd hhiissttoorriiccaall ddaattaa eexxiisstt.. IItt iinnvvoollvveess

mmoorree ssoopphhiissttiiccaatteedd mmaatthheemmaattiiccaall tteecchhnniiqquueess ttoo eevvaalluuaattee ppeerrffoorrmmaannccee ttrreennddss.. TThheessee ffoorreeccaassttss

rreevveeaall ppersistent, overall upward or downward patterns in the data or indicators that are due to or driven by underlying factors or events that are typically several years duration. There are two distinctive types of forecasting are used to predict changing performance trends or patterns.



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The first of these referred as Predictive Forecasting involves trends that are consistently detected in internal/external data or indicators over time. This type of projective forecasting assumes that the future will be consistent with the past and therefore future trends are developed based on past experience, patterns or trends. The second type of forecasting focuses on the development of Scenarios or Alternative Futures that are based judgments by experts or managers about what is most likely to occur or made to happen in the future by the organization in the future. Alternative futures are scenarios developed by evaluating the interaction among several major trends impacting the work environment. This type of forecasting is more complex, difficult to construct and more uncertain predictive forecasts. By developing several alternative scenarios or “possible futures”, contingency plans can be formulated to deal with much broader and more complex changes that may or may not occur in the future. A scenario is a description of how one version of the future might unfold. As a forecasting tool, simple scenarios, based on a limited amount of data can have significant strategic management implications for different units, departments or offices in the organization. There are significant differences between these two types of forecasting. Projections or predictive forecasts reflect a largely pre-determined and relatively stable future. Trends and patterns are therefore likely to continue for some period of time. Alternative futures, on the other hand, represent “possible” futures—and involve depicting several potential paths to the future. Alternative futures are more elaborate and robust compared to projections. Scenario analysis enables external stakeholders/experts and managers to develop long-term preventative policies or action plans that will be effective in responding to a variety of possible futures. If alternative futures are not considered or evaluated external experts and line managers are much more likely to be constrained by the implicit or common sense assumption that the future will be a repeat of what has occurred in the past.

3.3 The Forecasting Process: There are seven steps in the forecasting process:

1. Determine the use of the forecast 2. Select the items to be forecasted 3. Determine the time horizon of the forecast 4. Select the forecasting model(s) 5. Gather the data 6. Make the forecast 7. Validate and implement results

3.4 Forecasting: Key tasks: There are several key forecasting tasks and actions that need to be addressed: a) Identifying the underlying factors or circumstances that drive the evolution of long-term

trends and patterns. b) Determining the scope, speed, direction, intensity, volatility and magnitude of patterns,

indicators or trends. This involves an analysis of whether detected or projected change is a quickly passing episode or an event of some duration. Patterns can be systematic (continuous over time) or cyclical (reoccurring up and down variations over time).

c) Effective forecasting should focus on 1) Identifying what should be forecast and 2) why it should be forecast. This involves identifying the projected changes that will have the greatest relevance or impact on the organization or staff. It is both time consuming, unnecessary and counter-productive to focus on forecasting of large number of trends and patterns. As you try to forecast and track too many areas, the amount of data collection and analysis expands exponentially. If the scope of forecasting is too broad, it is difficult to detect errors or separate relevant trends from irrelevant or insignificant ones.



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Also, the greater the scope of forecasting, the greater the tendency for “analysis paralysis”. In other words, trying to cover too much territory prevents managers from focusing on finding solutions to observed or projected problems.

d) Other considerations-- Forecasts are seldom perfect. Most forecasting methods assume that there is some underlying stability in the system. Aggregated forecasts consisting of many indicators tend to be more accurate than any single-indicator forecast.

Phase#4 Trend Analysis and Assessment 4.1 Core Concepts: Trend Assessment is defined as the identification and evaluation of how current and anticipated (projected) patterns, trends or changes will impact or effect the organization. The purpose of assessing is to analyze current or projected changes in performance indicators and trends. Assessment involves evaluating how the impact of relevant trends and patterns are likely to be felt in the future. During the assessment focus on continuous HR improvement shifts from understanding what is changing to evaluating how trends and patterns are likely to have a positive or negative impact on specific units, departments and offices within the organization.

4.2 The Assessment Process: Key Performance Indicators (KPIs): During the targeting phase, specific management areas or performance indicators that have been monitored should be selected for further analysis and evaluation. An outcome of the assessment phase is identifying and prioritizing the potential negative or positive impact of the most relevant and important strategic issues and trends. A probability-impact assessment matrix (see diagram below) is used to prioritize the importance of HR issues relative to short and long-term planning. Issues and trends in order of priority, probability and timing can be arrayed on the matrix. separate matrix can be prepared for each of the three planning periods—short-, medium- and long-term. Although the scoring system for assessing probability and impact can be simple or complex, a general categorization of high, medium and low is usually sufficient. This matrix has several merits. It provides a comprehensive, at a glance array of issues, orders them in a manner that facilitates discussion, planning and evaluation in time frames appropriate to the allocation of resources and management attention.

Probability-Impact Assessment Matrix Probability and

Timing of Events Event #1 Event #2 Event #3 Event #4

Event #1 (Probability and Timing)






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Phase #5—Targeting 5.1 Core Concepts and Definitions: Targeting is defined as identifying areas within the internal/external environment that require significant improvement and assessing magnitude of deviation from established management practices and/or standards. This involves determining what specific areas, practices or indicators need the greatest amount of improvement. This also consists of linking resources and tools to facilitate dramatic improvement in the targeted performance or process areas. The Targeting Process: Targeting consists of 6 steps:

1. Management/stakeholders identify priorities or targets for improvement 2. Specifying the timeframe required for benchmarking and improvement 3. Establishing the magnitude, scope and direction of change that is desired or required for each

area or process 4. Conduct Gap Analysis (Comparison of current area to internal or external best practices,

measures and/or standards. Gap analysis is the process of measuring current management processes, policies, practices, and operations to internal standards used by high performing units, offices or departments or with external organizations that are recognized as high performers in the targeted area(s).

5. Reporting the findings and conclusions constitutes another step in the targeting phase. This includes making recommendations to address particular situations such as under performance, alarming trends, potential improprieties, oversights, and shortcomings for corrective actions or recommending measures for improvement of performance.

6. Identify alternative strategies, objectives, solutions or action plans, specifying the expected outcome or results to be achieved --A standard, norm or target for each area to be monitored is established and recorded. (E.g. an output in terms of numbers or time required to complete the task).

There are several tools that enable the targeting process. The first of these is referred to as Prescriptive Improvement. Prescriptive improvement is the use of a consistent and systematic processes or techniques to close the gap between current performance and desired performance (or between current performance compared to internal or external benchmarks or standards) for each strategic area that is targeted by introducing new or modified management processes and/or practices. Use of Quantitative Performance Measures—this technique involves an on going process of comparing current indicators and measures of performance compared to best practice or best in class standards.

Phase#6—Remediation and Improvement

6.1 Definition and Core Concepts:

Operational/performance process improvement does not stop at the targeting phase. After the issuance of a report to management, advice and assistance are provided to facilitate corrective action plans and activities meant to implement recommendations for correction of oversights, mistakes and shortcomings. While action planning and implementation are essentially the responsibility of the department/office concerned the continuous improvement process would be a meaningless and unproductive exercise unless a Management Remediation Committee with constituencies, units and departments to ensures that recommendations are implemented, oversights, shortcomings and that alarming trends are corrected, underperformance addressed. The MRC supports the implementation process by providing departments/offices with assistance needed to improve performance including training, tools, templates, and interpretation/clarification of rules, polices and guidelines. Remediation is defined as the plan or process that brings about significant improvement in operational performance, practices and/or policies. Remediating—this phase of the social/operational performance review that involves developing corrective action plans, implementing these plans and evaluating results/actual improvement.



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6.1 The goals of remediation

1. Select a plan or process such as benchmarking, reengineering, etc, that will accelerate and facilitate improvement,

2. Measure the amount of change or improvement that takes place and

3. Evaluate the results/outcomes compared to the corrective action and improvement plans

6.2 The Remediation and Corrective Action Process: Steps in the remediation process

1. Review and Prioritize Targets for Improvement 2. Determine How to Assess and Close Gaps (GAP Analysis) 3. Develop Targeted Practice/Process Improvement Goals, Objectives and Action Plans 4. Select Improvement Techniques/Methods (e.g. benchmarking) 5. Obtain required internal and external advise (MRC committee) support, resources and

expertise 6. Implement plan—deploy solutions (e.g. apply best practices) 7. Evaluate and monitor results (actual improvement compared to targets) 8. Continuous Improvement Mechanisms and Tools

Several factors can contribute to accelerating the improvement process:

a) Internal or internal expert assistance or consultation can be used remotely or through use of specific performance templates and assessments

b) Internal and or external benchmarking Best-practice benchmarking is a process whereby organizations pursue enhanced performance by measuring their processes and practices against those in other organizations. For example, comparisons may be made with competitors, partners, and organizations with similar processes operating in different spheres and even other parts of the same organization. This technique involves an on going process of comparing current indicators and measures of performance compared to best practice or best in class or established standards.

c) Group problem-solving is the use of social action advisory committees to recommend solutions and assist in tracking/measuring improvement 1.3.1 Performance Measurement—many assessment tools and techniques are used

to target improvement. These include the change history assessment, transaction/administrative assessments, 360-degree feedback process, process reengineering, systems/It/process evaluation, and capability/capacity analysis.

1.3.2 The Balanced Scorecard Is a performance measurement and management framework, which was developed in 1992 in order to measure the economic and operating performance of a firm? The Balance Scorecard helps aligning performance measures with organizational objectives through strategic performance management. The framework provides a balance between financial and non-financial measures, as well as internal and external measures and usually integrates four dimensions of performance are: (i) the customer perspective; (ii) Internal business process perspective;

1.3.3 Results-Based Management is a broad performance management strategy aimed at achieving changes leading to improved performance and better results? Performance Indicators and the Logical Framework are key components of Results Based Management systems.



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The different Results Based Management phases include: the identification of objectives, indicators, and target for each indicator, the establishment of a monitoring system for regular data collection, the comparison of targets with actual results, the integration of evaluations to provide complementary performance information-and the use of performance information for internal management accountability, learning and decision-making processes, as well as for external performance reporting to stakeholders and partners. In this light, RBB is only an initial step to introduction of Results Based Management.

1.3.4 Resource Deployment is the process used to assess and develop operational capacity and build organizational capability

1.3.5 Remediation Taskforces or SWOT Teams SWOT Team Intervention is used in cases where greatest improvement is desired and unit, department, or office has reduced capacity.

1.3.6 Focus Groups and issues Management Interactive meetings with management, experts, stakeholders, staff and customers/clients.

1.3.7 Clarification of policies/practices and procedures Reviewing and discussing key CSR strategy, operational and social policy issues related to CSR management, policies, procedures, practices and service to clients with a view to identifying situations that need to be addressed or improved.

1.3.8 Documentation Reviews This involves a Review and analysis of CRS data, sampling of documentation, management files and records. The review is used to evaluate program outcomes, ascertain end results, adherence to or deviations from rules, regulations and procedures, respect of the integrity of processes, quality of work accomplished and level of guidance and support received or needed.

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A process for evaluating csr strategies, practices and programs

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