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Selected Publications
NEW Evaluation as an Effective Management Tool -
Donor organizations and other stakeholders are interested in learning more about the performance of business development services (BDS) that have been established to help meet the diverse needs of small and medium-sized enterprises (SMEs) in different countries. To this end, the Committee of Donor Agencies for Small Enterprise Development has developed a preliminary Performance Measurement Framework (PMF) to guide research on BDS performance. The PMF presents a set of measures to assess the performance of BDS programs with the eventual aim of establishing performance standards for programs around the world.
This paper provides a critique of the PMF within a broader discussion of the role of evaluation, particularly in terms of its use as a tool that managers can use to improve the performance of their own BDS organizations. It suggests that the PMF can be useful in helping program managers and other stakeholders assess performance on various dimensions. However, it also urges the donor committee to exercise considerable caution in establishing common performance standards given substantial differences among programs as well as trade-offs inherent in program designs. It recommends that greater emphasis be placed on in-depth program evaluations grounded in explicit theories of particular initiatives.
Program evaluation of Pennsylvania's Industrial Resource Centers -
The state of Pennsylvania commissioned Nexus Associates, Inc. to conduct an evaluation of the economic impact of the program, determine the likely future of manufacturing particularly with respect to small and medium-sized manufacturers (SMMs), and assess the implications for the IRC program in the decade ahead.
The analysis is based on panel data for individual manufacturing plants - the Longitudinal Research Dataset (LRD) - maintained by the Center for Economic Studies at the U.S. Bureau of the Census. A technique known as a quasi-experimental design was employed to isolate program impacts from other factors affecting company performance including firm size, geographical location, industry trends and general economic conditions. This comparative analysis provided a solid foundation for estimating the statewide impact of the program in terms of gross state product (GSP), employment and tax revenues between 1988 and 1997 through the use of REMITM, a regional economic model.
The study also included an in-depth analysis of the manufacturing sector in Pennsylvania and a Delphi exercise on future trends. The Delphi panel consisted of 23 people, including representatives from manufacturing companies, management consulting firms, industry associations, labor unions, and academia.
Impact assessment of the Ben Franklin Partnership -
Created to promote technological innovation in order to spur economic growth in Pennsylvania, the Ben Franklin Partnership retained Nexus Associates, Inc. to conduct an independent evaluation of the economic impact of the program.
Direct program impacts were estimated using a quasi-experimental design that compared 842 Ben Franklin clients to a statistically similar, individually matched, control group of 2819 companies. Differences between the two groups (client impacts) were then used to model the program's overall economic impact on the state's employment, gross state product (GSP) and tax revenues.
Data for the comparison group were drawn from the ES202 database, a collection of employment and wage data from employers participating in government unemployment insurance (UI) programs. The assessment also included eight in-depth case studies, describing the specific role of the BFP program in the success of clients and regional initiatives.
Evaluation of the Experience of the Centros De Desarrollo Empresarial - Lessons learned from CDE Rafaela-Esperanza in Argentina -
The Multilateral Investment Fund (MIF) was established in 1993 as a special fund administered by the Inter-American Development Bank (IDB) to accelerate private sector development and help improve the climate for private investment in Latin America and the Caribbean. One of the objectives of the MIF is to broaden the participation of smaller enterprises in the regional economy and improve their competitiveness in order to meet the challenges of increased globalization.
Over the past few years, IDB/MIF has provided financial support to various private, not-for-profit business development organizations in Argentina, Colombia, Costa Rica and El Salvador to help meet the diverse needs of small and medium-sized enterprises (SMEs). While differences among these organizations exist, all are intended to improve the performance of participating companies as well as develop a thriving market for business consulting services.
The IDB/MIF is interested in learning more about the performance of these programs. This concern stems from both pressure to ensure that monies are well spent and a desire to strengthen programs to better meet the needs of SMEs in the future. To this end, IDB/MIF asked Nexus Associates, Inc. - an economics and management consulting firm that specializes in performance measurement and program evaluation - to conduct an evaluation of one center - the Enterprise Development Center (Centro de Desarrollo Empresarial) in Rafaela, Argentina. This report presents the results of that evaluation.
Do Manufacturing Extension Programs Matter? -
Building on pioneering state programs in the 1980s, new federal initiatives call for a significant expansion in the scale and scope of manufacturing extension efforts in the United States. This paper presents an evaluation of one effort to spur industrial modernization -- the Industrial Technology Extension Service (ITES) in New York State. Based on both qualitative and quantitative analysis, the evaluation suggests that the ITES program has had a favorable impact on many companies with respect to cost reductions and increased productivity. The paper discusses some of the difficult methodological issues in evaluating these types of programs and includes a series of recommendations on strengthening future evaluations to yield more definitive results.
The Impact of the New York Manufacturing Extension Program: - A Quasi Experiment -
The New York Manufacturing Extension Partnership (New York MEP) was established to help manufacturers in New York compete more effectively and thereby generate economic benefits for the citizens of the state. This article presents an analysis of whether the program has accomplished this goal. Using a quasi-experimental design in which the performance of New York MEP clients is compared to that of similar, non-participating
companies, the study finds that clients, on average, have changed critical
business and manufacturing practices, improved their manufacturing performance,
and increased their added value (profits plus labor compensation) as a direct result of the program.
Waste Not, Want Not - How Manufacturing Extension Can Improve Business Performance - Manufacturing extension centers have helped small manufacturers to improve performance on the shop floor and thereby reduce costs. This article presents a case study of a metal working firm that was able to increase productivity and profits by instituting measures recommended by a field agent working for the Florida Manufacturing Technology Center (FMTC) . As a result of services provided, the company was able to boost manufacturing throughput and increase efficiencies. Using a simulation model, the article explores how small changes in manufacturing performance can result in significant cost reduction. It then discusses the consequences of alternative strategies designed to enhance the value of goods sold, rather than lower the costs of production. It concludes by arguing that manufacturing extension centers should help companies become more distinctive as well as more efficient.
Integrating Strategy and Evaluation in the Manufacturing Extension Partnership -
From the outset, the NIST Manufacturing Extension Partnership (MEP) has been committed to evaluation and continuous improvement. This commitment is manifest in a broad range of activities that are intended to ensure center accountability, chronicle important performance trends, and highlight operating efficiencies. However, like other public programs, the MEP is also being asked to document program effectiveness. Congress, state legislatures and other sponsors are all interested in program results, though different sponsors have different expectations. The very public nature of the MEP program makes it difficult to arrive at a clear and consistent statement of both program objectives and the basic principles under which it should operate. These differences are part of legitimate debate within the political process. This report provides specific recommendations designed to improve the MEP evaluation system in order to better satisfy these competing objectives.
Manufacturing Extension Centers and Private Consultants: Collaboration or Competition - Congress directed the National Institute of Standards and Technology (NIST) -- an agency of the U.S. Commerce Department -- to establish a program to help small manufacturers improve their performance. Beginning with three centers in 1989, the NIST Manufacturing Extension Partnership (MEP) has expanded to include centers in 42 states and Puerto Rico. The manufacturing extension centers (MECs) help companies define their needs, develop an appropriate course of action, and secure needed resources to resolve identified problems. One issue that emerged early on in the program's evolution is whether MECs compete with private consultants. This study examines this question. Based on surveys of companies and consultants, the study concludes that MECs do not compete directly with private consultants. In fact, these organizations actually expand the market for consultants. Furthermore, MECs encourage greater openness of manufacturers to change, enabling them to benefit more from outside assistance. As a result, companies working with MECs are up to six times more likely to plan important changes in their operations compared to similar manufacturers that have not participated in MEC programs.
Money on the Shop Floor -
American manufacturers are under constant pressure to reduce costs, increase quality and deliver products more rapidly. While many large corporations have taken steps to enhance their performance, most small manufacturers are still producing products in the same way they have for decades. However, manufacturing extension programs are helping to change this story. This article presents results of a comprehensive evaluation of the New York Manufacturing Extension Program conducted by Nexus Associates, Inc. Drawing on in-depth case studies, it demonstrates that small manufacturers have been able to reduce waste, lower production costs, and cut cycle times as a direct result of services provided by field engineers and other affiliated organizations.
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