Monitoring Systems and Development Indicators - Example

Heading: Monitoring System Assignment Your name: Course name: Professors’ name: Date Table of Contents Table of Contents 2 INTRODUCTION 3 Introduction to monitoring systems and development indicators 3 Features of a good monitoring system 3 Features contributing to effective indicators 3 THE ENTERPRISE: Starbucks 4 Business description 4 Region Boundary 4 Organization boundary 5 Phases of sustainability 5 SUSTAINABILITY DIMENSIONS 7 Environmental dimension 7 Economic dimension 8 Socio-cultural dimension 8 SPECIFIC SUSTAINABILITY AREA 8 LIST AND ASSESSMENT OF INDICATORS FOR MONITORING 8 Environment Dimension 8 Conclusion 10 Recommendations 10 References 12 Appendices 13 Appendix 1 13 Appendix 2 13 INTRODUCTION Introduction to monitoring systems and development indicators Features of a good monitoring system A monitoring system entails a systematic gathering of information regarding programs’ features, activities, and outputs in order to make decisions about the program, enhance program efficiency, and inform decisions concerning future planning. Some of the characteristics of a successful monitoring system include: Accurate: A good motoring system must be accurate, which implies that it has low margins of errors in the evaluation. Neutral: It is also neutral, as it provides an impartial description of performance. Comparable: Good monitoring systems are comparable, as they maintain consistency with time in order to enable comparisons. Clear: An effective monitoring system must be easy to comprehend. Timely: Successful monitoring systems should be timely, which implies that they should be conducted on plan that suits management activities (Rempel, Andison, & Hannon, 2004). Figure 1: Features of good management system Feature Description Accurate Low error margins in measurement Neutral Balanced performance account Comparable Consistency; hence facilitating comparisons Clear Easy to comprehend Timely Done on a plan appropriate for management tasks Features contributing to effective indicators Indicators are universal, natural, and part of people’s lives. They emerge from values, and they develop values. Additionally, the indicators chosen entail a vital determinant of the system’s behaviour. One of ways of testing whether management activities have satisfied management objectives is monitoring of indicators (Hales, 2009). Indicators entail measurements that represent specific concerns or issues. They are measurable parts of a particular system, and symbolise specific characteristics a, attribute, or property of a given system, such as, wastage, profits, or energy consumption. Some of the elements of a good indicator include measurable trends, application of best available information; presentation in an explicit and comprehensible format; and leads to an in-depth discovery of critical matters. To be successful, an indicator should be quantifiable within a realistic time, relevant to the matter at hand, informative, cost-efficient, and understandable (TIPS, 2004). In addition, Hales (2009) asserts that a good indicator must be unambiguous and direct measure of growth. Furthermore, a good indicator may be followed, is available regularly, inexpensive to track, merely indicates, directional, context specific (Hales, 2009). They are highly indispensable of successful monitoring and evaluation system. They may give important information on achievement, performance, and accountability. Nonetheless, indicators are just a single part of a complete M&E system. They entail a single way of gathering and analysing information, and it is critical that they are employed when and where they give meaningful insight and information. They are important in the standardization of measures, which enable comparisons over distinct geographical locations, over time, and across projects or programs. They are also different from raw data, because they can compare spatially and temporally, and can aggregate information for higher-degree understanding and use (Hales, 2009). Imperatively, performance indicators should be founded on the exclusive goals of independent projects. However, Rempel, Andison, and Hannon (2004) say that performance indicators ought to be founded on an underlying rational framework, which connects project goals and project constituents, and their respective activities, inputs, and outputs at distinct execution stages. Successful development of indicators involve certain guidelines, which include, setting of suitable objectives, definition of success indicators, identification of main activity clusters or project constituents, definition of vital assumptions on which the project or program is founded, identification of ways of verifying project achievements, and definition of resources necessary for execution. Performance indicators are categorized into input indicators, result indicators, output indicators, risk indicators, efficacy indicators, relevance indicators, effectiveness indicators, efficiency indicators, and outcome and impact indicators (Duxbury & Gillette, 2007). THE ENTERPRISE: Starbucks Business description Region Boundary Starbucks Cooperation is has developed from one store in 1971 to the largest roaster, retailer, and brand of the globe’s best coffee, with retail places in Latin America, North America, Asia Pacific, Middle East, and Europe. It currently operates in approximately 40 nations in the world. The company attributes its development and success to its steadfast commitment to give the best quality coffee, and unique customer experience whilst carrying out its business in a way that facilitate environmental, social, and economic advantages for its immediate communities (Starbucks, 2004). apart from coffee, the company deals in the production and selling of a broad range of consumer goods, such as, coffee brewing apparatus, high quality teas of Tazo, and Hear Music CDs, among other products. The company owns Seattle Coffee Company that includes Torrefazione Italia coffee brands and Seattle’s Best Coffee, and thus providing alternative kinds of coffee flavour outlines. The corporation is situated in the United States’ Washington State, and in Australia, there are various branches in Melbourne, and Sydney among other cities. Additionally, the corporation is on the Nasdaq Stock Market list with the symbol SBUX. As at December 2, 20004, the company had about 434,000 record beneficial shareholders (Starbucks, 2004). Organization boundary Starbucks cooperation is managed by senior officials hired by Schultz with extensive experience in the management and expansion of retail chains. For instance, in 1990, Orin Smith, an MBA holder, and 13 years experience at Touche and Deloitte was hired as a top financial officer, and promoted to chief operating officer, and president in 1994. During the firm’s early stages, four main executives Howard Schultz, Howard Behar, Orin Smith, and Dave Olsen added to the most shaping and defining firm’s culture, values, and principles. As the firm grew, extra executives were brought in store supervision, marketing, specialty sales, finance, human resources, and information systems. Schultz also added people to the firm’s board of directors who had faced increasing retail chain and could contribute to the valuable perspectives (Starbucks, 2004). Starbucks has a clear mission statement in which it aims at establishing itself as a leader supplier of the globe’s finest coffee whilst maintaining its uncompromising principles as it grows. To assess the suitability of its decisions, the corporation has established six guiding principles. Firstly, the firm sets to offer a great work setting and handle each other with dignity and respect. Secondly, it sets to uphold diversity as a necessary constituent in the manner it conducts its business. Thirdly, Starbucks seeks to use the greatest excellence standards in the purchasing, roasting, as well as fresh delivery of its coffee. Fourthly, it sets to contribute constructively to its environment and community. Fifthly, Starbucks intends to develop an enthusiastically satisfied customer base always, and lastly, it seeks to acknowledge that profitability is indispensable to its future prosperity (Ivy Cohen Corporate Communications, 2007). Phases of sustainability Every firm has cycle of six phases in its sustainable growth. These phases are described as follows: Rejection: Here, an organization does not care about sustainable practices in its workplace. It sees the environment, staff, and natural resources as resources that need to be used to make profits. Its goal is to utilise cost-cutting activities while overlooking outcomes of these actions. Non-responsiveness: here, a company ignores environmental effects of their activities, and the community with an aim of maintaining compliant employees. Profits are the main goal, and the firm intends to attain at any cost. It considers lack of sustainable activities as ignorance instead of direct option to use. Compliance: The firm wants to the appropriate thing. It complies with workplace safety, and ecological regulations. There is voluntary conformity to regulations, and there much focus on risk minimisation. Efficiency: Focus is on the creation of successful workplace, and maximum cost efficiency. The firm gets involves in community to demonstrate cost-benefit balance. It recognises the advantage of being practical with sustainable practices. Strategic Sustainability: a firm begins to view workforce as a capital source. It realises that it is involved in the community, and considers the effects on the community. Besides, firms develop create strong environmental management system (EMS) to bring competitive advantage to the venture. Ideological Commitment: A firm takes a holistic approach to sustainability, and believes in environmental protection and satisfaction of community’s socio-cultural needs. It demonstrates equity and ethics in business goals and actively enhances sustainable matters both externally and internally. Starbucks is currently at the strategic proactivity. Since most companies strive to attain this phase, the firm needs to maintain the strategic sustainability phase. To maintain this stage, the firm needs to use sustainability by enhancing its competitive advantage via positioning itself as a premier in the sustainable performance. It also needs to work more closely with the community to handle its negative effects on them. It should maintain its use of recyclable materials, knowledge management, workforce, practices, and human capital (Semroc, Baer, Sonenshine, & Weikel, 2012). The company should also engage its stakeholders in its operation to achieve success, and listen to both its critics and supporters in order to improve its performance. Besides, the company should understand the significance of addressing and discussing its negative effects on the communities, and the environment (Starbucks Coffee Company, 2012). Nevertheless, the firm may experience challenges in maintaining the phase caused by some environmental issues like air, noise, and water pollution caused by their production activities. Therefore, the firm may not successfully enhance its cost-benefit basis (Duxbury & Gillette, 2007). Figure 2: Starbucks framework SUSTAINABILITY DIMENSIONS Environmental dimension In a monitoring system, the environmental dimension to supervise the sustainability on Starbucks involves assessment of natural resources for conservation and protection, and conservation management basing on diversity, rarity, and fragility (Aras, & Crowther, 2010; Mearns, & Norton, 2010). To understand the management of natural resource properly, a definition of conservation is necessary. Conservation entails the control of human employment of the biosphere in order to achieve the highest sustainable benefits for the current generation, as well as to satisfy the aspirations and needs of the future generations (Starbucks, 2004). Harris (2001) says that to attain the aforementioned results, it is crucial that the monitoring system provides an instrument for minimising the effects on the ecology of Starbucks. This is also significant in the management and sustenance of the natural resources around the corporation. Besides, this is indispensable in conservation of the environment’s flora and fauna and in the rehabilitation of degraded sites to a natural state through the removal of threatening processes. This sustainability dimension is essential in the monitoring of the company’s initiatives intended to help in the preservation of biodiversity and building of awareness in its communities (Cox & Ziv, 2005; King, 2009). As per the company’s environmental statement, Starbucks (2004) asserts that it is committed to a responsibility of environmental leadership in all aspects of its business. The company intends understand environmental matters and share information with its employees, for instance, it intends to reduce its greenhouse gas emissions. It also seeks to develop flexible and innovative answers to facilitate change, for instance, it has designed stores using ecologically friendly materials like Medex. Besides, it strives to purchase, sell, and utilise environmentally responsive products through sustainable packaging and use of paper cups. Moreover, to fulfil the environmental mission, the company intends to recognise that fiscal obligation is indispensable to an environmental future, for example, with commuter mug, and recycled coffee grounds usage (Starbucks, 2004). Furthermore, it seeks to instil ecological role as a business value by ensuring that leaders communicates with employees on significance of environmental measures, and encourages them to participate in local development projects (Ekins,2000). Additionally, the firm seeks to measure and monitor its progress for every project, and to encourage all employees to share its mission. For instance, the company has developed key metrics for measuring and monitoring its progress (Starbucks, 2004). Economic dimension The economic dimension of sustainability in this monitoring system is meant to manage the economic practices and progress of Starbucks (Ekins, 2000). It is essential as it monitors and measures the revenues, and other economic aspects of the firm. The dimension also addresses the company’s value chain extending from farmers to customers including coffee growers, coffee pickers, mill employees, roasters and exporters. It ascertains that in every supply chain stage, all the quality standards are achieved. It also focuses on economic transparency that implies verifiable and detailed documentation for financial deals in the supply chain. It also addresses issues of Fair Trade Certified Coffee, and Coffee and Farmer Equity Practices among others. Besides, the economic dimension addresses the economic effects of Starbucks on its operating communities, such as, development projects, education, and employment opportunities (Starbucks, 2004). Socio-cultural dimension The dimension will focus on the aspect to protect, empower, and maintain the surrounding communities. The main aim of the monitoring system is to attain social cohesion, as well as community engagement, particularly the engagement of the immediate communities (University of Regina, 2005; Burritt, 2011). It is relevant in that the company, as it addresses sufficient housing, schools, health clinics, fresh drinking, and good roads. The company has a history of contributing to the local states, especially in areas where they purchase huge amounts of coffee. It intends to engage the local farmers in order to understand the communities’ greatest needs, and to initiate projects that will help in satisfying the needs. For instance, during fiscal 2004, the company provided about $1.8 million in aid of 35 projects, which was $1 million higher than in fiscal 2003 (Starbucks, 2004). SPECIFIC SUSTAINABILITY AREA Environmental dimension LIST AND ASSESSMENT OF INDICATORS FOR MONITORING Environment Dimension The monitoring system recommends the following indicators meant to address the environmental dimension. The indicators are categorised under certain themes including Greenhouse gas emissions, electricity, paper, and water. Figure 2: Starbucks environmental indicators Category Indicator Definition Measurement Challenges Greenhouse gas emission Metric CO2 tons equivalents This refers to the number of CO2 tons emitted by the firm processes Assess the number of tons emitted CO2 Changing demands Changing climatic conditions Paper % of post-consumer fibre and unbleached fibre This entails the percentage of post-consumer fibre and unbleached fibre in the company’s yearly paper purchases Measured by the percentage of fibre in the paper purchased by the firm Changing demands Economic recession Changing market conditions Water Gallons per retail space’s square foot This involves the amount of water used in the firm as per the square foot The total volume of water used by the firm Changing demand Climatic changes Economic recession Electricity Kilowatt hours of per retail space’s square foot This entails the amount of electricity consumed by the company The amount of electricity used (Kilowatts) Changing demand Climatic changes Economic recession The first environmental indicator entails greenhouse emissions, which measures the amount of emissions per tons resulting from the firm’s activities. The indicator is vital in the business in that it determines whether the company is achieving its environmental sustainability objectives. It also helps to determine whether the firm is working towards the reduction of the greenhouse gas emissions towards the creation of a safe and sustainable environment for both the future and current generations. This indicator is measured in terms of the retail space’s tons of GHS (Starbucks, 2004). Nevertheless, the measurement of the indicator may hindered by climatic changes and fluctuating market demands. Paper is the second indicator, which addresses, which entails the percentage of post-consumer fibre and unbleached fibre in the company’s yearly paper purchases. This is important in determining the proportion of unbleached paper and post-consumer fibre used by the company in its yearly production. It helps in ensuring that the firm using natural resources in a sustainable way. Nonetheless, the measurement of the indicator may be hampered by the changing market demands, and economic recession, which could lead alter the estimated percentage of paper to be used by the company. The third indicator is water, which seeks to address the amount of water the company will use in its productions throughout the year. This is important in ensuring that the company uses the natural resources economically and sustainably. The indicator can be measured in terms of gallons per retail space’s square foot. However, the indicator might be challenged by economic recession, climatic condition, and fluctuating market demands; hence, altering the amount of water consumed by the company in its operations. The last indicator in this case involves electricity. This indicator shows the amount of electricity that Starbucks will use per year in carrying out its operations. This is critical in determining the total power usage by the firm in order to conduct its activities effectively. It also ensures that the company utilises electricity in a sustainable way to meet expectations and needs of future and present generations. In terms of measurement, the indicator may be measured in terms of the number of kilowatts consumed by the firm in its operations. Just like other aforementioned environmental indicators, this indicator may be challenged by climatic changes, changing market demands, as well as economic conditions, like recession. In conclusion, this monitoring system is important in the management and measurement of the Starbucks’ towards the achievement of sustainable performance. Conclusion A monitoring system is essential in the systematic gathering of information concerning programs’ features, activities, and outputs in order to make decisions regarding the program, boost program efficiency, and inform decisions concerning future planning. A good monitoring system must be accurate, timely, clear, comparable, and neutral. Indicators are essential components of the system, and can be generic and specific. Starbucks Corporation is handling its sustainability practices effectively, as it is already in the strategic sustainability phase, which most firms strive to achieve. Nevertheless, it is poorly managing the issue of environmental pollution, use of workforce, and improvement of cost benefit basis. Here, the company works towards environmental protection, sustainable use of resources, as well as satisfaction of community needs. The firm’s performance can been monitored based on the general sustainable dimensions including environmental, socio-cultural, and economic dimensions. Based on the environmental dimension, the specific indicators include GHS, paper, water, and electricity. These include metric CO2 tons equivalents; post-consumer and unbleached fibre; gallons per retail space’s square foot; and Kilowatt-hours of per retail space’s square foot. Recommendations The firm should address environmental protection by managing resources sustainably the corporation ought to realistically enhance its cost-benefit basis of operation the company should work towards the reduction of waste and pollution to maintain a safe environment the firm should employ highly skilled employees and ensure that they all adhere with the environmental regulations References Aras, G., & Crowther, D. (2010). A handbook of corporate governance and social responsibility. Farnham, Surrey, England: Gower. Pp. 91-100. Burritt, R.L. (2011). Environmental management accounting and supply chain management. Dordrecht New York: Springer. Pp. 172-180. Cox, W. & Ziv, J. (2005). Dimensions of Sustainability. Pp. 1-23. http://www.publicpurpose.com/bari.pdf Duxbury, N. & Gillette, E. (2007). Culture as a Key Dimension of Sustainability: Exploring Concepts, Themes, and Models. Pp.1-24. http://www.cultureandcommunities.ca/downloads/WP1-Culture- Sustainability.pdf Ekins, P. (2000). Economic growth and environmental sustainability: the prospects for green growth. London New York: Routledge. Pp. 1-20. Hales, D. (2009).An Introduction to Indicators. Pp.1-100. http://www.unaids.org/en/media/unaids/contentassets/documents/document/2010/8_2-Intro-to- IndicatorsFMEF.pdf Harris, H. (2001). A Survey of sustainable development: social and economic dimensions. Washington, D.C: Island Press. Pp. 1-20. Ivy Cohen Corporate Communications (2007). Marketing coach. Corporate Social Responsibility vs. Cause Marketing. P. 1. http://www.ivycohen.com/MarketingCoach/CauseBranding.pdf King, M. (2009). Understanding the social dimension of sustainability. New York: Routledge. Pp. 166-176. Mearns, R., & Norton, A. (2010). Social dimensions of climate change: equity and vulnerability in a warming world. Washington, DC: World Bank. Pp. 1-20. Rempel, R.S., Andison, D.W., & Hannon, S.J. (2004). Guiding principles for developing an indicator and monitoring framework. The Forestry Chronicle, 80(1), 82-90. http://www.cnfer.on.ca/SEP/papers/ForChron2004.pdf Semroc, B., Baer, E., Sonenshine, J., & Weikel, M.C. (2012). Assessment of the Starbucks Coffee and Farmer Equity (C.A.F.E.) Practices Program FY08 - FY10. Pp. 1-158. http://www.conservation.org/global/celb/Documents/2012.04_CAFE_Practices_Assessment_FY0 8-FY10_Final.pdf Starbucks (2004). Striking a Balance Corporate Social Responsibility. Fiscal 2004 Annual Report . Pp.1- 76. http://assets.starbucks.com/assets/f602155dd53b4770859d7724bc04a41a.pdf Starbucks Coffee Company (2012). Starbucks Investor Relations. Financial Release. Pp. Retrieved on September 20, 2012 from http://investor.starbucks.com/phoenix.zhtml?c=99518&p=irol- newsArticle&ID=689068&highlight TIPS (2004). Recent Practices in Monitoring and Evaluation. Monitoring the Policy Reform Process. Pp. 3-18. http://pdf.usaid.gov/pdf_docs/PNACA949.pdf University of Regina (2005). Social dimensions of the impact of climate change on water supply and use in the City of Regina: research report. Regina: Canadian Plains Research Center, University of Regina. Pp. 1-20. Appendices Appendix 1 Figure 1: Features of good monitoring system Feature Description Accurate Low error margins in measurement Neutral Balanced performance account Comparable Consistency; hence facilitating comparisons Clear Easy to comprehend Timely Done on a plan appropriate for management tasks Appendix 2 Figure 3: Starbucks environmental indicators Category Indicator Definition Measurement Challenges Greenhouse gas emission Metric CO2 tons equivalents This refers to the number of CO2 tons emitted by the firm processes Assess the number of tons emitted CO2 Changing demands Changing climatic conditions Paper % of post-consumer fibre and unbleached fibre This entails the percentage of post-consumer fibre and unbleached fibre in the company’s yearly paper purchases Measured by the percentage of fibre in the paper purchased by the firm Changing demands Economic recession Changing market conditions Water Gallons per retail space’s square foot This involves the amount of water used in the firm as per the square foot The total volume of water used by the firm Changing demand Climatic changes Economic recession Electricity Kilowatt hours of per retail space’s square foot This entails the amount of electricity consumed by the company The amount of electricity used (Kilowatts) Changing demand Climatic changes Economic recession Read More