Training Package in Performance Management

Including supported MSc fee bursaries

The Performance Management Training package consists of four modules available individually as training courses or as integral part of a masters level qualification. The Training Package offers entry at 'ground level' on the quantitative methods of performance measurement such as Data Envelopment Analysis (DEA) and Stochastic Frontier Methods (SFA). It explains how they work and what their advantages, drawbacks and limitations are with a view to using them in real life contexts. Each module is delivered in four full days over a period of a few weeks to facilitate those with work or other commitments to take them as training courses.

Who Would Find the Modules of the Package Useful

In the broadest sense performance management is concerned with the need to use resources effectively. The package will provide a solid understanding of the latest methods for measuring the comparative efficiency of organisational units. The concept of organisational unit covers any entity transforming resources to useful outcomes. The units may for example be bank branches, police forces, utilities or lower level functional units of utilities, schools or sales outlets. The package will enable participants to employ objective methodologies such as DEA and SFA to derive performance-relevant information which includes:

• Identification of the best operating practices which can be disseminated to improve performance across all operating units;
• Identification of benchmark role-model units which can be emulated by others;
• Identification of the most productive scale size for each unit;
• Identification of the changes in productivity over time, including unit costs, and of the underlying causes.

Demand for the skills of the package is readily identifiable in a variety of contexts. For example:

• Regulators and regulated utilities interested in estimating through comparative assessment the scope for efficiency savings at firm level to be integrated in the regulation processes;
• Agencies overseeing the provision of public services (e.g. education, health or justice) interested in ascertaining through comparative assessment that value for money is achieved;
• Commercial organisations (e.g. bank branches, supermarkets, pharmacies) interested in improving through identifying and disseminating good practices the performance of their operating units.

Since the late 1970s there have been very major developments in the theory and an increasing use of methods of comparative efficiency assessments. Research has covered a multitude of technical issues such as:

• models for assessing comparative efficiency;
• models for estimating the scope for economies of scale and/or scope;
• models for estimating performance targets;
• models for estimating productivity change over time.

This research has gone hand in hand with an increasing use of the methods involved in a variety of sectors. E.g. Berger and Humphrey alone (European Journal of Operational Research Vol.98, pp. 175-212, 1997) list some 130 uses of the methods contained in this package in financial institutions. However, while there are hundreds of papers directed at those researching in the area, there is little by way of training starting at 'ground level' and directed at those who wish to understand how the quantitative methods of performance measurement work and what their advantages, drawbacks and limitations are with a view to using them in real life contexts rather than researching them. This package is aimed at filling this gap in training provision.

The Modules of the Package

The training package consists of the following modules, running on an annual cycle:
Module Code Module Name Approximate Timing.

The four modules have been carefully designed to complement each other in affording the student depth and breadth in performance management. The modules work together as follows. Firstly module M1 introduces the student to linear programming and statistics if s/he has not covered these topics before or relatively recently. Then modules M3 and M4 offer in-depth training drawn from the latest research developments in DEA and econometric methods, as applied to comparative efficiency assessment and more generally to performance management. Module M5 looks at the broader organisational context and the issues arising in implementing the technical methods covered in modules M3 and M4. In sum, taking the five modules together we have a package which is cutting-edge, it deepens students' understanding of technical developments in the field of quantitative methods of performance measurement and broadens their understanding of the context in which such methods can be used.

The normal qualification for enrolling on the modules is a university degree. Additional pre-requisites by module are as follows:

Module: Pre-requisites

Delivery Mode

Each module involves four full days contact each day normally being scheduled on a Friday or Saturday. The M3 and M4 days are normally scheduled one to follow the other so that a student can normally take a two-day block if registered on both M3 and M4. The days of a module are typically separated by a 2 week period to allow time for self-study and consolidation by students. Each day of a module is self-contained covering particular topics on performance measurement so that those already familiar with the field can take additional topics in the area that interests them. This affords maximum flexibility to those with time constraints by reason of employment, family commitments or indeed full-time education so that they may sculpt out of the package a sub-set of modules and topics and a pace to suit their own circumstances.

Staff Teaching on The Package

Teachers delivering most of the content of the training package at present are Dr David Saal, Prof. E. Thanassoulis and Prof. Tom Weyman-Jones. (Teachers on the package can change without prior notice)

David Saal is Lecturer in Economics at Aston Business School. He has extensive familiarity with econometric methods for performance measurement. He has published in the academic literature in the area and has acted as consultant on efficiency measurement to regulators in the UK and Australia, including Office of the Director General of Water Services (OFWAT), the regulator of English and Welsh water companies.

Emmanuel Thanassoulis is Professor in Management Sciences at Aston Business School. He has published over 70 refereed and working papers in the theory and application of DEA including its use in banking, school and retail outlet assessments. He is author of Introduction to the Theory and Application of Data Envelopment Analysis: A foundation text with integrated software (Kluwer academic publishers, 2001). He has acted as consultant to a number of organisations on the use of DEA including HM Treasury, the Department for Education ad Skills, Office of the Director General of Water Services (OFWAT), the Audit Commission and the Home Office. Professor Thanassoulis founded and manages the Training Package in Performance Management.

Tom Weyman-Jones, Professor of Industrial Economics at Loughborough University, has acted as consultant in several European benchmarking regulation cases. He has published papers on the application of stochastic frontier analysis and DEA to industries such as electricity, gas and banking as well as international studies of aggregate productivity.

The Tradition of Delivering Residential Video-Supported Training at Aston Business School

Aston Business School is situated at the heart of the UK's second city and has an established record of academic excellence (RAE 5 in 2001), a thriving research culture and strong demand from well-qualified students for its range of undergraduate, Masters and post-experience courses (QAA teaching quality 24 out of 24). It has approximately 80 teaching and research staff and an extensive portfolio of taught postgraduate and Continuing Professional Development (CPD) provision. It offers an MBA and over 10 taught MSc programmes recruiting collectively of the order of 300 FT-equivalent students annually. It is accredited by EQUIS (the European Quality Improvement System). To gain this accreditation the School demonstrated excellent standards of quality across teaching, research and consultancy. The School has traditionally offered extensive CPD training. The courses are residential, mainly held in the Management Development Centre. The Management Development Centre offers high quality en-suite rooms.
Delegates needing accommodation to take modules of the Training Package in Performance Management will be able to use the Management Development Centre, subject to availability. The modules of the Package will normally be taught in the School's Postgraduate Suite. The suite includes a 150-seater stepped lecture theatre, 70-seater lecture theatre, syndicate rooms, computer laboratories and social space. It also makes frequent use of the University's TV and multimedia studios.

Aston Business School is one of only a few UK Business Schools with extensive facilities and experience in supporting distance learning study by video. The part-time distance learning version of the Aston MBA has been supported by video for well over ten years. The video support for this package will be provided by the same in-house Aston Media which has been fulfilling this role in respect of the Aston MBA.

Funding and Fees

The fees per residential module in 2005/6 were 800 pounds for those in full time education and 1500 for others. Fees for taking part of a module only are available on request. Full-fee bursaries are available for suitably qualified EPSRC-eligible candidates for the full-time MSc degree in Operational Research and Performance Management. Fee levels may change without prior notice.

Expressing an Interest