Eco-Friendly Key Performance Indicators in Public Procurement - Dissertation Example

?4.5 Research Strategy Robson (2002) in his paper had delineated three different processes for conducting research work, or in other words plans for responding to the research question. These are the experiment based, the survey based, and the case-study based strategies. A researcher must select one, two, or all three of the strategies, as per the requirements of the research paper. This is further reaffirmed in Yin’s paper (1989) where he opines, that a scientific research tends to exploit the experiment based strategy more often, while the social sciences opt for the survey based and the case-study abased research strategies. This paper will adopt the conceptual model approach, framed by Yin (1989) in his research article. According to Yin (1989) conceptual models are necessary while conducting research work, especially in the context of framing a well-defined information and subsequent discussion and analysis. Quite often used when two phenomena are being compared and contrasted (in this case comparing and contrasting two procurement organizations, A and B), this approach requires that the researcher frame and organize the data into a modular format. This paper is in line with Yin’s theory of the resultant conceptual model, which though formulated primarily primary data, also allows for the mapping of a phenomenon and its subsequent theoretical analysis. In other words, this approach allows for the explanation of facts through theoretical analysis; the expansion of knowledge through the clarification of the relation between reality and theory; and most importantly, is ideally appropriate for a comparative analysis of two organizations (Yin, 1989). The nature and concerns of the current research have led to the determination of the imperatives of extensively exploiting the conceptual model approach. The research focuses on the critical analysis of two organizations, from the data collected during primary research. Organization A, a public sector entity, is a Public Procurement Organization; while Organization B, also a Public Procurement Organization belongs to a different Department. Primary data from both the organizations were collected through the process of extensive interviewing. 4.5.1 Qualitative Sampling When selecting samples for qualitative survey, a different set of priorities must be taken into consideration. Each conducted qualitative survey is almost similar to an individual scientific research. Here the sample size is not important, rather the set up of observable patterns in the data, is. According to Patton (1987), “The sample should be large enough to be credible, given the purpose of evaluation, but small enough to permit adequate depth and detail for each case or unit in the sample”. Qualitative samples tend to be studied in nature, rather than being random (Crabtree and Miller, 1999). Studied sampling, or criterion?based selection (Miles and Huberman, 1994) bases the selection of research and participants on certain specific features and characteristics that will enable the researcher to gather in?depth information on areas important for that particular research. This type of studied sampling is therefore strategic in nature (Crabtree and Miller, 1999), with scope for easy access to explore a situation and the participants, having only secondary importance. Typical case sampling, a particular type of purposive sampling, observed mainly in cases that are representative of a larger group selected for a detailed analysis, is relevant to the present study (Patton, 1987). Since qualitative research does not emphasize on statistical data interpretation, there is no compulsion that samples must be of a sufficient scale for a researcher to arrive at a conclusion (Denzin and Lincoln, 2000). Sample sizes must be kept credibly small, in order to do justice to the rich evidence provided by the qualitative studies and to make best use of the resources available for intensive research analysis (Ritchie and Lewis, 2003). Within the context of the present study, sample size was primarily determined by data (as regards the practicality and scope for collecting primary data) made available to the researcher beforehand. Accordingly, a series of interviews with top management and staff in both the Organizations was conducted and as far as was possible the interviewee format (in replication) was used for both the Organizations, to allow valid cross?case comparison. The Interviews were conducted in the period of March 2011, and all the face?to?face interviews were difficult to arrange. These top-management and management-level interviews with the employees, a total of sixteen, form the study’s sample size. 4.5.2 Qualitative Data Collection Cooper and Schindler (2005) cautioned the business researchers against approaching any research work with a fixed data collection method in mind. They opined that a researcher should first identify the type and nature of the required data, and then select the collection method or methods which are suitable to the collection of the identified data types. While Ghauri and Gronhaug (2005) largely agreed with this notion, they also conceptualized that the researcher must limit his selection of data collection methods (not as regards to the type of data required), but to the collection methods available to him. As for example, it is simply not feasible for the researcher to undertake the collection of primary data across quite a lot of countries, even if the nature of the required data has determined this to be the optimal collection method. It is important for the researcher to find a middle ground between the available data collection methods and the methods optimally required by the needed type of data (Ghauri and Gronhaug, 2005). For the purpose of this research, and given that both primary and secondary data is required, three data collection methods will be used. Apart from the desk-based data collection method traditionally associated with secondary data collection, primary data will be collected through semi-structured in-depth interview methods. The rationale behind choosing the in?depth method lies in the fact that in?depth interviews allow the researcher to crosscheck the survey results and explore the social realities behind the identified trends (Merriam, 1998). Secondly, as pointed out by Ritchie and Lewis (2003), in?depth interviews allow the researcher to gain a deeper insight into the studied problem. Lastly, as Denzin and Lincoln (2000) emphasized, in?depth interviews lead to the generation of insightful stories, rather than statistical information, and permit a better understanding of the organizational complexity (2000). The researcher has used the recommendations put in by Saunders et al. (2000), who opined that, interviewers should adopt a range of different interviewing styles, so as to maximize the interview effectiveness, and not restrict themselves to following a rigid interview framework. Where an interview exposes issues of interest relevant to the assessment of project management capability, the interviewer should be free to pursue such lines and, as a result, not all questions in the pro-forma interview framework must necessarily be covered during the interviews. Saunders et al. (2000) maintained that interviews make it possible for the researcher to explore other, although critically related, themes and enrich the available research data, and during the course of the interviews, the interviewer discovered that this was, indeed true. The interviews carried out for this study made it possible to explore other themes, and furthermore enriched the data. In some cases respondents allowed tape recording and this had the advantage of enabling the interviewer to pay more attention to the discussions, rather than concentrating on note taking. In many cases the respondents were unwilling to allow the interview to be tape-recorded and, in those cases, the researcher had no option, but to rely on note-taking only. According to Patton (1987), “Analysis is the process of bringing order to the data, organizing what is there into patterns, categories and basic descriptive units. Interpretation involves attaching meaning and significance to the analysis, explaining descriptive patterns and looking for relationships and linkages among descriptive dimensions”. For the purpose of this thesis, the initial step was to conduct “within case analysis”. Within case analysis typically involves detailed write?ups for each case. These write?ups are often simply pure descriptions, but they are central to the generation of insight, because they help researchers to cope early in the analysis process, given the typically large volumes of data that they will face (Eisenhardt and Bourgeois, 1988). The advantages of this method are that it allows for the unique features of each case to emerge before trying to generalize patterns. Besides the “within?case” analytical approach, the research also made use of the applied-model approach. As based on the interviews, models for each organization were applied, and subsequently compared and contrasted with their counterparts from the other organization. In other words, the within?case approach lent to the applied-models that were compared with each other. 4.5.3 Qualitative Data Handling Qualitative data handling is comprised of several steps. These are the interview strategy, the transcribing procedure, the data analysis and the coding methodology. In all of these, the researcher abided by the guidelines as suggested by Miles and Huberman (1994). This following section shall explain these procedures and processes, thereby clarifying the method by which the primary data was collected and later analyzed. 4.5.3.1 Interview Strategy The interviews were primarily aimed at clarifying the performance-management strategies that are used in private and public organizations. Emphasis was made on the differences and similarities between the two, in order to determine whether or not inherent structural differences determined the variances within public and private sector performance-based management strategies. At an early stage, the researcher had determined that since the study was focused on performance-based management, the interviewees were to be drawn from the top?management and management pool. The organizations were consequently selected from the federal-procurement Agencies and a contact was established between the researcher and the potential interviewees. Eight interviewees from each organization were selected, with the selection criteria being determined both by the respondent’s position in the organization and his consent. As stated, eight members from Organization A, a public procurement agency, consented to the interview. These were two division managers, two section managers, and four program managers. All were interviewed at their place of work, with the interviews lasting around 15 minutes. In relation to Organization B, a public procurement agency in another Department, the same interviewing format applied to Organization A was followed. All respondents were interviewed at their place of work with interview durations being 15 minutes. The respondents were two division managers, two section managers and four program managers. Without exception, all sixteen interviewees conditioned their consent upon confidentiality, and insisted that the names of their organizations and theirs, let alone specific policies and strategies, be kept completely confidential. The researcher consented and assured that confidentiality will be respected and transcribed copies of the interviews would be provided to them. Following the advice of Miles and Huberman (1994) the researcher took special effort to make himself well versed with the interview topic. As Miles and Huberman (1994) opined, interviews can constructive and fruitful only when the interviewer has substantial knowledge on the investigated topic or area of investigation, prior to the interview. In deciding on the interview format and strategy, the researcher decided that the structured approach would be too rigid, and would prevent the researcher from interacting with the interviewees and request for a follow?up and spontaneous questioning. It would also prevent the interviewees from spontaneously adding their own observations. Accordingly, a semi?structured approach was relied upon, as it would both ground the interview, and ensure that it remained on topic, while allowing both the interviewer and interviewee the spontaneity necessary for answering the follow up questions, or the adding of the explanatory remarks and comments. 4.5.3.2 Transcribing The transcribing process was extremely time?consuming, as it was personally transcribed by the researcher, and owing to which the researcher was able to develop a high degree of familiarity with the interview material, recollect some of the issues and comments that the interviewees had made, and detect the underlying meanings. In addition, personal transcription of the interviews allowed the researcher to enhance his awareness on the various issues. By following Miles and Huberman’s (1994) advice regarding transcription of interviews, the researcher was able to acquire a better understanding of the phenomenon under investigation. 4.5.3.3 Coding Various researchers (Miles and Huberman, 1994; Patton, 1987; Merriam, 1998; Sekaran, 2003) insisted that following their transcriptions, the interviews must be coded. Coding facilitates later analysis of the data, and ensures accuracy and relevancy in the analysis stage. The allegation here is that a researcher needs to identify and define certain key terms, precisely clarify what he’s looking for, and know why he is looking for those terms. Following the articulation of the research’s conceptual framework and the compilation of the key terms, the interview transcripts were coded in accordance to the Miles and Huberman (1994) guidelines. First, a list of start codes, derived from the researcher’s conceptual framework was established. Second, using the protocol’s list of responses, codes were developed from each of these questions, whereupon two levels of coding were used. In the first level of coding, the transcripts were critically reviewed and marginal remarks made (Miles and Huberman’s, 1994), and these remarks were in essence, reactions to the different ideas and issues raised during the interviews. After this step, descriptive codes were generated, allowing for categorization and summarization of the mentioned remarks. The purpose of the first level of coding was the summarization of segments/areas of data. Following the above mentioned process, the researcher engaged in the second coding-level, as dictated by Miles and Huberman (1994). This involved, analyzing the data produced by the first level of coding, and their grouping into tight thematic sets. Like the transcription process the coding process was also time?consuming. Apart from the fact that it reduced the interview transcripts to manageable data, capable of withstanding systematic analysis, the coding process allowed the researcher the opportunity for a closer and infinitely more comprehensive reading of the interview data. 4.6: Credibility and Quality of Research Findings The data collected is used to inform the research findings. If the data cannot be verified, it implies that the findings are questionable in nature, thus, it is the responsibility of the researcher to validate his findings (Sekaran, 2003). Miles and Huberman (1984) contend that it is equally important for the researcher to evaluate the quality of his data, prior to its exploitation. 4.6.1 Reliability A research study is reliable only if another researcher, using the same procedure and studying the same phenomenon, arrives at similar or comparable findings (Sekaran, 2003). Accordingly, it is important that the researcher maintains a comprehensive protocol of his study, in case others may be interested in checking the reliability of the study made (Sekaran, 2003). Even with best intentions in mind, the researcher is confronted with a variety of variables which may intrude upon the reliability of his findings. If he is partly drawing conclusions on the basis of interview data, it must be noted that the respondents can be biased or may not be in a mood to answer questions with real interest. It is not uncommon for respondents to simply tick a response on a questionnaire, without really reading or considering it (Sekaran, 2003). Therefore, research scholars must carefully select their respondents, ensuring that they are indeed willing to act as participants in the study, and will answer the questions with minimal bias (Hair et al., 2003). To ensure that this is the case, when in-putting the questionnaire data, the researcher should carefully read through them to ensure that there are no logical flaws and that the responses given are not contradictory in nature (Hair et al., 2003). To ensure better reliability, the researcher scheduled interviews at the respondent’s convenience, and additionally, while distributing questionnaires, gave the participants’ adequate time to answer, ensuring that the interviewer was not rushed through the process (Hair et al., 2003). 4.6.2 Validity A research is valid only if it reaches its originally stated aims and objectives, and if the findings are verifiable, Saunders et al. (2000). There are three methods for establishing validity. Saunders et al. (2000) explained that to construct validity, it entails the establishment of certain accurate operational measurements for the core concept of the research work. This is done by establishing a chain of evidences through the data collection process; by verifying key information through the use of multiple sources of information; and by presenting informants with a draft of the study for review. 4.6.3 Quality Considering that the data gathered and subjected to qualitative analysis will be extensively used for informing the research work and producing conclusions, Miles and Huberman (1994) insisted that the researcher must necessarily review the quality of his/her qualitative data prior to the actual utilization. The researcher, engaged in data gathering and subsequent qualitative analysis, needs to exercise complete objectivity, while refrain from influencing the respondents towards answering consistently with the research hypotheses, and not subject the data to a qualitative analysis process, which would deliberately influence the results towards validating the hypotheses. The researcher must be objective and honest to ensure the quality of the data and its analysis (Miles and Huberman, 1994). The researcher also needs to exercise transparency regarding the data gathering and analyses stages. As asserted by Miles and Huberman (1994), researchers can only fulfill the transparency criteria by making his interview notes available, and by clarifying the qualitative data analysis process used, and by making the analysis notes and procedures readily available for scrutiny. These notes must clearly explain the qualitative analysis procedure used, and how the researcher arrived at his results. Availability implies transparency and allows the readers/other researchers to judge the integrity of the analysis and procedure themselves. As emphasized by Miles and Huberman (1994), the exercise of transparency helps to ensure the quality of the data and its subsequent interpretation. Quality also hinges upon the fluidity of the interpretation and whether it is clearly represented, and related to the rest of the argument. Quality qualitative data analysis and interpretation should be clearly and coherently presented and need to fit into the totality of the thesis argument (Miles and Huberman, 1994). To ensure the quality of the data gathered and the quality of its subsequent qualitative analysis, the researcher had ensured that the interview questions were set according to the requirements of the research questions and not in accordance to the conclusions that the researcher had originally hoped to reach. Furthermore, throughout the interviews, the researcher exercised objectivity, and did not influence any answers of the interviewees. The qualitative data analysis process, or the coded interview analysis process used, also in concession to the transparency requirement, is available for review in Appendix X. The data analysis is relevant to the dissertation as a whole, and flows with the general argument. In brief, recognizing the importance of the quality requirement, as explained by Miles and Huberman (1994), the researcher has applied the methodology suggested by them for the guarantee of the quality of the data gathered and the quality of their interpretation. Conclusion The findings of the study allow for the research to conclude with the assertion that performance management tools from private sector management withstand implementation in the public sector. This finding is extremely interesting, because it is based upon a series of other critical research findings. The overall findings are: (1) The disconnect between the private and the public sector is artificial; (2) The public sector, contrary to popular assumptions, (even by academic assertions), is not inherently mechanistic, but can be rendered such by the management paradigm imposed upon it; Needless to say, the study does not purport to cover all areas of similarities and differences between the public and the private sector, nor does it offer an extensive analysis of all contemporary performance-management-tools and paradigms. However, that did not detract the value of the research and, in fact, has added to it. It has added to the value of the study by enabling the researcher to devote greater time, effort, and space to the exploration and investigation of the applicability of performance management to the public sector. In other words, by limiting the scope of the study, the researcher was able to focus better on the proposed research questions and satisfactorily respond to them, as indicated in the table below: Research Question Answers Approach How to ensure effectiveness, economy, and transparency in a sustainable public procurement system by using modern management theories and strategies, and cost accounting tools? The review on literature showed that there are no insurmountable structural barriers to the implementation of private sector management theories and tools in the public sector. The study also revealed that the public sector already has a strong orientation towards the implementation of a number of private sector management tools and strategies. Therefore, the findings were that management strategies, tools and paradigms, traditionally associated with the private sector can be successfully adapted to the public sector, if this is done by respecting the specificity of the concerned administration. Qualitative How KPIs ensure long-term viability and performance efficacy in public procurement? KPI’s are quantifiable measures through which the progress of an entity towards achieving certain Key Performance Areas can be mapped. The Key Performance Areas include “Core Deliverables, Key Processes, Organisational Capacity and financial issues,” and this must be determined with meticulous care. To achieve success and improvement within the public procurement, it is necessary for all “procurement teams in every organisation [to] adopt a culture of collaboration and continuous improvement, create and actively use management information to inform strategic procurement decisions, embed best practice, and improve organisational processes.”(reference?) Each firm has different kinds of pre-set targets that indicate ‘success’ for that particular organisation, and the KPIs also vary according and be focused on achieving optimal efficacy. Qualitative It is contentious issue whether public sector organisations and government institutions, or bodies, like Organisation A and B, are vulnerable to efficiency inertia and poor performance. The performance levels of public sector organisations and government entities are below-expectations and are inconsistent with their potentialities, not owing to their obscure structural variability, but owing to the operative management paradigms (Collins, 2001). The study, having established that the performance-based management exploited in public sector organisations (or private sector ones, for that matter), are the primary determinants of the success or failure, performance excellence, or persistently low performance levels, hypothesized the possibility of the successful transference of private sector management strategies to the public sector. Findings, derived from both the literature review and the field study indicated that transference was not an option, but that adaptation and adoption was. The implications arising from the aforementioned discourse has direct impact upon the government institutions and public sector organizations. Proceedings from the above, and in note of both the complex nature of the organizational responsibilities and the centrality of its services and functions to the communal well?being, it is incumbent upon Organization A’s and B’s leadership and top management, to undertake adaptation and implementation of performance-based management. Doing so will substantially enhance the quality and delivery of services and allow the organization to better articulate its strategic objectives while working towards achieving them. Public sector organizations have imposed comparative inefficiency upon them and have effectively constrained their capacity to attain performance excellence through their persistent adherence to public sector management and control paradigms. It is the responsibilty of the leadership and the top management within the public sector organizations to depart from the status quo, as described in the above, and work towards the implementation of private sector performance management tools, while also being held accountable for failing to achieve the set targets. Thus, it may be deduced from the above discourse that the research findings lend to a number of implications for the public sector organizations. First, failure to attain performance excellence, as measured through both financial and non?financial indicators, is self?imposed by persistent adherence to public sector management paradigms. Secondly, public sector organizations need not, by definition, be mechanistic, centralized and formalized, but are often rendered thus by the management paradigms which enforce and reinforce these structural characteristics upon the organizations in question. Thirdly, public sector organizations can substantially improve their performance levels and attain excellence if they can integrate the private sector performance-based management into the realms of the public sector management. According to the Aberdeen group’s report in 2006, the patterns to use for identification of the top 10 Procurement KPIs are: 1. “Negotiated cost reduction savings 2. Implemented cost reduction savings 3. Percent of total spend under management 4. Cost avoidance 5. Procurement ROI (savings/operating costs) 6. % of suppliers accounting for 80% of spending 7. Supplier performance (price, delivery, quality, service, etc.) 8. Contract compliance 9. Requisition, PO, or invoice transaction volume 10. Subjective feedback (structured, survey-based).”1 Lastly, the public sector management and leadership must prepare their organizations for the implementation of performance management, design a performance-management model which addresses their organization’s unique needs and requirements, and engage in the implementation of the stated objectives. These, in brief, are the propositions that the thesis findings hold for the public sector procurement organizations. Read More