Engineering: issues, challenges and opportunities for development ...

ENGINEERING: ISSUES CHALLENGES AND OPPORTUNITIES FOR DEVELOPMENTfocused on institutional capacity-building and an industry’sability to relate to the national business environment. Themost well-known were the Wealth of Nations Index indicatorswhere there were fifteen indicators in three categories:■ Industry structure■ Industry organization■ National enabling environmentIt could be shown that these fifteen indicators were distributeduniformly across the proposed Balanced Scorecard report anddata levels. All that was needed to complete the matrix wereindicators for:■ Human resources from national data, which is generallyreported at the national level.■ Business operations from firm data, which is generallyreported at the national level.■ Client relations from firm data, which is generally reportedat the national level.The various industry tools suggested that suitable indicatorswere:■ Number of graduates per capita.■ Association fee as percentage of member firm revenue.■ Private client derived revenue as a percentage of total revenue.There were now seventeen indicators. Gross Domestic Product(GDP) should be removed since it was not normalized,giving a recommended set of sixteen indicators.In addition to having ‘balanced’ indicators distributedacross relevant dimensions, the indicators must a) incorporateboth ‘leading’ (push) and ‘lagging’ (react) indicators;b) reflect aspects that were both internal and external tothe national industry; and c) measure both short-term andlong-term aspects. Without entering into detail, it could beshown that the proposed set of indictors met these requirements.FIDIC National Industry Capacity Index*CountryNumber ofindicatorswith dataIndexBangladesh 13 4.60Poland 16 6.51Viet Nam 13 6.79Austria 16 7.37Czech Republic 13 7.48Japan 15 7.78Hungary 15 7.96Switzerland 14 8.04Greece 13 8.08China 15 8.45Ireland 14 9.36New Zealand 13 9.38Belgium 14 9.59South Africa 15 9.97Australia 15 10.09Germany 12 10.27Spain 16 10.43Sweden 11 10.45Denmark 16 10.72Slovenia 14 10.94UK 13 11.02Canada 15 11.15USA 13 11.39Finland 15 11.73Netherlands 16 12.44Norway 15 12.90* For more information: http://www.fidic.org/annualsurvey (Accessed: 28 May 2010).Data LevelIndicators mainly reported to the Country LevelFinancial Client relations Business processes Learning and growthAbout country GDP per capita Integrity Index Association uniqueness New industry graduates pertotal graduatesAbout firms Percentage foreign revenue Distribution of associationactivitiesAssociation fee as %of member firm revenueStaff per firmAbout countryAbout firmsIndustry revenue aspercentage of GDPMember firm percentage ofindustry revenueIndicators mainly reported to the Firm LevelClarity of procurement Association budget Firm staff per capitaPrivate client revenue as apercentage total revenuepercentage QBSversus QCBSStaff distribution in smallversus large firms336