A Review of Highway Agencies in the South Asia Region

A Review of Highway Agencies in the South Asia Region
5.3.3 Requirements
The transition to Phase 2 should be targeted in a publicly available letter of intent by the
parent ministry and highway agency. The letter should indicate a date when the agency will
be ready to monitor its performance. The agency, in turn, should reassess the capabilities of
the systems and procedures in place, and improve them in case they are found wanting.
5.4 Phase 3: Performance Focused on Output
5.4.1 Requirements
Phase 3 is centered on the highway agency improving its performance monitoring with
a stronger focus on outputs and intermediate/final outcomes, rather than inputs or
intermediate outcomes. For example, with reference to Table 4.2, Chapter 4, the agencies
should fully monitor the performance indicators 9 and 10 besides the several output
indicators as presented in the table, in this stage.
This phase requires highway agencies to apply rigorous and comprehensive measures
to analyze their data and information. In addition, the highway agencies need to gather
additional data and information. Systems, as a result, might need to become more robust or
enhanced to handle this additional data and information.
Internal procedures for the recruitment of staff, decision-making, measurement of indicators,
and collection of data and information might require revision to ensure they still meet the
requirements of the increased scrutiny of performance. It is also likely that the targets for
performance will become more demanding, requiring the agency to fine-tune them.
Some states in India have mooted the concept of output-based budgeting. This initiative
would indeed provide a fillip to the output-focused-performance-framework. Moreover,
many of the centrally funded schemes/road programs the agencies are mandated to deliver,
usually place significant focus on the outputs and intermediate outcomes. The agencies
need to slowly align the performance framework with such schemes to derive the dual
benefit of improved monitoring of the schemes as well as overall organizational capacity
and performance enhancement.
The transition to Phase 3 should also be targeted in a publicly available letter of intent by
the parent ministry and highway agency, in the manner described in section 5.3.3. As amply
demonstrated by other international agencies, enhanced focus and orientation to users and
embracing a culture of service provision facilitates transition to this phase.
5.5 Phase 4: Performance Monitoring Throughout the Organization
In Phase 4, the highway agency employs performance monitoring in every aspect of
decision-making and operation, fully expanding its focus to outcome indicators. For
example, with reference to Table 4.2, Chapter 4, the agencies should monitor the
performance indicators 20 (a through c), 21, 22 and 34 and integrate these indicators fully
in the decision-making process. All decisions in this phase would essentially be made on the
basis of achieved performance compared to targeted performance.
The most apparent demand this phase imposes on the agency is increasingly encompassing
and demanding procedures for collecting, processing and analyzing data and information
pertaining to the performance of the highway network and its use. The agency will need
to carefully look at the environment in which it operates, its strategic plan and actual
performance against set targets. The agencies which are responsible for only provision of
transport infrastructure but not services might also face an enhanced challenge to fully
monitor and control the achievement of the outcome indicators.
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