The Art and Practice in Evaluation of Environmental Performance

Course Objectives
Providing a better understanding of an organization’s impacts
on the environment:
– Providing a basis for benchmarking management, operational
and environmental performance;
– Provide identifying opportunities for improving efficiency of
energy and resource usage;
– Determining whether environmental objectives and targets are
being met;
– Demonstrating compliance with regulations;
– Determining proper allocation of resources;
– Increasing the awareness of employees; and
– Improving community and customer relations
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Introduction
Environment: The sum total of all surroundings of a living
organism, including natural forces and other living things,
which provide conditions for development and growth as
well as of danger and damage.

Environment may refer to:
• Environment (biophysical), the physical and biological factors along with
their chemical interactions that affect an organism
• Environment (systems), the surroundings of a physical system that may
interact with the system by exchanging mass, energy, or other properties
• Environments (series), a series of LPs, cassettes and CDs depicting natural
sounds
It may also refer to:
• Built environment, constructed surroundings that provide the setting for
human activity, ranging from the large-scale civic surroundings to the
personal places
• Knowledge environment, social practices, technological and physical
arrangements intended to facilitate collaborative knowledge building,
decision making, inference or discovery
• Natural environment, all living and non-living things
• Social environment, the culture that an individual lives in, and the people
and institutions with whom they interact
• Physical environment, in ecology

• In computing:
– Desktop environment, in computing, the graphical user interface to the
computer
– Environment variables, the dynamic set of variables defined in a process
– Integrated development environment, a type of computer software that
assists computer programmers in developing software
– Runtime environment, a virtual machine state which provides software
services for processes or programs while a computer is running
• Environmental may refer to:
– Environmental art
– Environmental determinism
– Environmental epidemiology
– Environmental health
– Environmental movement
– Environmental policy
– Environmental psychology
– Environmental quality
– Environmental science, the study of the interactions among the physical,
chemical and biological components of the environment

ISO 14031

ISO 14031
• ISO 14031 is a performance management
system that gives businesses advice and guidance
on how to identify environmental
indicators. These can then be used to evaluate
environmental performance.

What is ISO 14031?
ISO 14031 is an environmental performance
management system. It gives businesses advice
and guidance on how to identify environmental
indicators. These indicators are used to measure
performance. The collection and assessment of
data and information is a main factor in this
performance management system.

Aims of ISO 14031
• The aim is to provide an evaluation of the current
environmental situation, and provide indications on how
trends develop over time. In this way the performance
management system is different to an environmental audit.
• Environmental audits only provide information on one specific
point in time. ISO 14031 is tool for businesses with and EMS
to help measure success. It can also be a guide to small
businesses that do not have an EMS. They can identify
environmental issues and criteria without the need to pay
consultation or ISO certification fees.

ISO 14031 Performance Management System
Guidance
• ISO 14031 will provide business guidance on:
• Design and development of environmental performance
programmes.
• Establishing environmental indicators in management,
operation and environment
• Collecting, analyzing and evaluating data.
• Reporting success to management, employees and
stakeholders.
• Reviewing and improving the performance management
system.

Benefits of ISO 14031 Performance
Management System
• There are many benefits for businesses to use ISO 14031. It can help a
business determine all the environmental aspects for all stakeholders.
• A great aspect of ISO 14031 is that it can be used by any organization. It
does not matter what size, industry, location or complexity of the business
is. All can use it.
• The performance management system can help a business prepare
periodic improvements. This can help small companies start an
environmental management system such as ISO 14001.
• For those businesses that already have an EMS, ISO 14031 is a supplement
that can be used alongside. ISO 14031 helps businesses measure their
results, which can improve environmental performance.

Small Business Benefits
ISO 14031 is great for small businesses. This is
because there is a low burden on finances and
personnel. It helps small businesses to become
environmentally efficient. This reduces the
environmental impact of small business

General Indicators for
Achieving Specific Targets

Achieving Performance Targets
Managers are measured on their ability to
achieve performance targets. Several basic
concepts are involved in communicating and
achieving targets: key performance indicators, goal
setting, and motivation.

Performance Target or Indicator
• A key performance indicator (KPI) is a tool for performance
measurement used by organizations.
• It is used to set a performance standard for an organization, a
business unit, or employees. It is also used to evaluate the
overall success of the organization or the success of a specific
activity in the organization.
• Success can be defined as progress towards strategic or
operational goals such as zero defects, customer satisfaction,
etc. KPIs are usually understandable, meaningful, and
measurable.

Goal Setting
Goal setting means establishing what a person or an
organization wants to achieve. Goals should be specific,
measurable, achievable, realistic, and time-targeted (SMART).
Goal setting is an effective tool for progressive organizations,
because it provides a sense of direction and purpose. Employees
get to know what they are expected to achieve. A clear concept
of achievement leads to personal development and increases
the overall performance of the organization.
Goal setting has a direct effect on the performance of the
organization. Studies have shown that challenging goals led to
higher performance than easy or no goals.

Motivation
Motivation is the psychological feature that arouses an
organism to action toward a desired goal and elicits, controls,
and sustains certain goal-directed behaviors. For example, if an
individual has not eaten, then he or she feels hungry, and as a
response he or she eats and diminishes the feelings of hunger.
There are many approaches to motivation: physiological,
behavioral, cognitive, and social. Motivation in business is very
important because motivated employees always look for better
ways to do a job. Motivated employees are also
more quality oriented and more productive.

Analysis of Enterprise Activities &
Determination of Potential Impacts &
Risks

Definition
Enterprise Analysis ... describes the Business Analysis activities that take
place for organizations to identify business opportunities, build their Business
Architecture framework, and determine the optimum project investment
path for the enterprise, including implementation of new business and
technical system solutions.
During Enterprise Analysis activities, the Business Requirements for
future project investments are identified and documented ... as higher-level
statements of the goals, objectives, or needs of the enterprise. they describe
such things as the reasons why a project is initiated, the things that the
project will achieve, and the metrics which will be used to measure its
success.
Enterprise Analysis, or EA, is the portion of BA most closely associated
with Portfolio Management. The output of EA is a set of projects that
go into the project portfolio, complete with business case support and ready
for management to examine, choose, and charter.

Benefits
• Better business alignment with strategic goals
• Improved planning
• Improved decision making
• Risk mitigation
• Reduced duplication of efforts
• Improved integration of resources - people,
processes, and tools

Participants & Roles
• Business Unit Manager(s)
– Define strategic goals
– Be prepared to prioritize
projects
• Business Unit IT Manager(s)
– Identify potential projects
– Provide background of current
state of IT

• IT Specialists
– Provide expertise in various tools and technologies as needed
– Map out architectures to achieve the desired goals
• Business Analyst
– Help identify gaps between goals and present state
– Map current and to-be business processes and suggest
improvements
– Design and conduct feasibility studies
– Create frameworks to define and rank various proposals
– Prepare high-level business case
Participants & Roles

Management Performance
Indicators (KPIs)

KPIs
• Key Performance Indicators, also
known as KPI or Key Success
Indicators (KSI), help an organization
define and measure progress
toward organizational goals.
• KPIs serve to reduce the complex
nature of organizational
performance to a small number of
key indicators to make it more
digestible for us.

Examples
• When you go to your doctor he might measure
blood pressure, cholesterol levels, heart rate and
body mass index as key indicators of your health.
• With KPIs we try to do the same in organization.

Must be Key To Organizational Success
• Many things are measurable.
• That does not make them key to the
organization's success.
• Note:
• In selecting Key Performance Indicators, It is
critical to limit them to those factors that are
essential to the organization reaching its goals.

Number of KPIs
• It is important to keep the number of Key
Performance Indicators small.
• It is to keep everyone’s attention focused on
achieving the same KPIs.

Performance Management Tool
• A Carrot
• KPIs are used as performance Management tool.
• KPIs gives everyone in the organization a clear
picture of what is important, of what they need
to make happen

KPI targets
• Post the KPIs everywhere
• In the lunch room
• On the walls of every conference room
• On Department’s web site
• Show what the target for each KPI is and show the
progress toward that target for each of them?
• People will be motivated to reach those KPI targets.

31
KPIs AND TARGETS
Issue KPI Target
All mail is not sorted
for delivery on date
of receipt
• Per cent mail sent for delivery (Speed Post) 100%
• Per cent mail sent for delivery (Ordinary) 100%
• Per cent mail delivered same day (Regd. Post) 100%
• Per cent mail delivered same day (Speed Post) 100%
• Per cent mail sent for delivery (Regd. Post) 100%
• Per cent mail delivered same day (Ordinary) 100%
• Per cent mail correctly sorted (Speed Post) 100%
• Per cent mail correctly sorted (Regd. Post) 100%
• Per cent mail correctly sorted (Ordinary) 100%
• Time from mail office to customer receipt
Less than 24
Hrs
• Mail transit time (end-to-end) As per norms
Network Issues
• Deviation of beat completion time 30 min
All mail is not
delivered on the day
of arrival
Mis-sorting and
delay in mail dispatch

Operation Performance Indicators
(OPIs)

Performance Indicator
A performance indicator or key performance indicator (KPI) is a type
of performance measurement.[An organization may use KPIs to evaluate its
success, or to evaluate the success of a particular activity in which it is engaged.
Sometimes success is defined in terms of making progress toward strategic goals,
but often success is simply the repeated, periodic achievement of some level of
operational goal (e.g. zero defects, 10/10 customer satisfaction, etc.). Accordingly,
choosing the right KPIs relies upon a good understanding of what is important to
the organization. 'What is important' often depends on the department
measuring the performance - e.g. the KPIs useful to finance will be quite different
from the KPIs assigned to sales. Since there is a need to understand well what is
important (to an organization), various techniques to assess the present state of
the business, and its key activities, are associated with the selection of
performance indicators. These assessments often lead to the identification of
potential improvements, so performance indicators are routinely associated with
'performance improvement' initiatives. A very common way to choose KPIs is to
apply a management framework such as the balanced scorecard.

Categorization of Indicators
Key performance indicators define a set of values used to measure against. These raw sets
of values, which are fed to systems in charge of summarizing the information, are
called indicators. Indicators identifiable and marked as possible candidates for KPIs can be
summarized into the following sub-categories:
• Quantitative indicators that can be presented with a number.
• Qualitative indicators that can't be presented as a number.
• Leading indicators that can predict the outcome of a process
• Lagging indicators that present the success or failure post hoc
• Input indicators that measure the amount of resources consumed during the generation of
the outcome
• Process indicators that represent the efficiency or the productivity of the process
• Output indicators that reflect the outcome or results of the process activities
• Practical indicators that interface with existing company processes.
• Directional indicators specifying whether or not an organization is getting better.
• Actionable indicators are sufficiently in an organization's control to affect change.
• Financial indicators used in performance measurement and when looking at an operating
index.
• Key performance indicators, in practical terms and for strategic development,
are objectives to be targeted that will add the most value to the business.[3] These are also
referred to as 'key success indicators'.

Identifying Indicators of Organization
Performance indicators differ from business drivers and aims
(or goals). A school might consider the failure rate of its students
as a key performance indicator which might help the school
understand its position in the educational community, whereas a
business might consider the percentage of income from
returning customers as a potential KPI.
• The key stages in identifying KPIs are:
• Having a pre-defined business process (BP).
• Having requirements for the BPs.
• Having a quantitative/qualitative measurement of the results
and comparison with set goals.
• Investigating variances and tweaking processes or resources
to achieve short-term goals.

Identifying Indicators of Organization
• Key performance indicators (KPIs) are ways to periodically assess the
performances of organizations, business units, and their division,
departments and employees. Accordingly, KPIs are most commonly
defined in a way that is understandable, meaningful, and measurable.
They are rarely defined in such a way such that their fulfillment would be
hampered by factors seen as non-controllable by the organizations or
individuals responsible. Such KPIs are usually ignored by organizations.
• A KPI can follow the SMART criteria. This means the measure has
a Specific purpose for the business, it is Measurable to really get a value of
the KPI, the defined norms have to be Achievable, the improvement of a
KPI has to be Relevant to the success of the organization, and finally it
must be Time phased, which means the value or outcomes are shown for
a predefined and relevant period.
• In order to be evaluated, KPIs are linked to target values, so that the value
of the measure can be assessed as meeting expectations or not.

KPI examples
• Marketing
• Manufacturing
• IT Operations
• IT Project Execution
• Supply chain management
• Government
• Further performance indicators

Environmental Conditions
Indicators (ECIs)

Environmental Conditions Indicators
(ECIs)
• Environmental indicators are simple measures that tell us
what is happening in the environment. Since the environment
is very complex, indicators provide a more practical and
economical way to track the state of the environment than if
we attempted to record every possible variable in the
environment. For example, concentrations of ozone depleting
substances (ODS) in the atmosphere, tracked over time, is a
good indicator with respect to the environmental issue of
stratospheric ozone depletion..
• Environmental indicators have been defined in different ways
but common themes exist.

• “An environmental indicator is a numerical value that helps
provide insight into the state of the environment or human
health. Indicators are developed based on quantitative
measurements or statistics of environmental condition that
are tracked over time. Environmental indicators can be
developed and used at a wide variety of geographic scales,
from local to regional to national levels.”
• “A parameter or a value derived from parameters that
describe the state of the environment and its impact on
human beings, ecosystems and materials, the pressures on
the environment, the driving forces and the responses
steering that system. An indicator has gone through a
selection and/or aggregation process to enable it to steer
action.”

Indicator Systems & Communicating Them
• Individual indicators are designed to translate complex information in a concise
and easily understood manner in order to represent a particular phenomenon (e.g.
ambient air quality). In contrast, indicator systems (or collections of indicators),
when seen as a whole are meant to provide an assessment of the full environment
domain or a major subset of it (e.g. forests).
• Some indicator systems have evolved to include many indicators and require a
certain level of knowledge and expertise in various disciplines to fully grasp. A
number of methods have been devised in the recent past to boil down this
information and allow for rapid consumption by those who do not have the time
or the expertise to analyze the full set of indicators. In general these methods can
be categorized as numerical aggregation (e.g. indices), short selections of
indicators (e.g. core set or headline indicators), short visual
assessments (e.g. arrows, traffic signals), and compelling
presentations (e.g. maps or the dashboard of sustainability). Many prominent
environmental indicator systems have adjusted their indicator systems to include
or report solely on a limited “indicator set” (e.g. the OECD’s “Key Environmental
Indicators” and the “Canadian Environmental Sustainability Indicators”)

The End

The Art and Practice in Evaluation of Environmental Performance

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The Art and Practice in Evaluation of Environmental Performance

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