Management effectiveness can be defined as strategies and mechanisms that improve the outcomes of management activities though seeking more effective measures, activities, and operations relative to the available budget. Increasing performance relative to expenses can have the same impact as increasing revenue in terms of conservation outcomes. Some examples of cost effectiveness measures include improved human resources management, technology upgrades and maintenance, improved strategic planning, etc. Enormous financial efficiency and effectiveness gains can be achieved through improved public procurement efforts. Governments outsource many activities and investments and through approaches such as green procurement and generally improved oversight of outsourcing, large costs savings and improvement in efficiency can be achieved. One example of an in-depth analysis on cost effective conservation was a cost-benefit analysis performed for soil and water conservation measures in Tanzania (Tenge et al. 2005).
Cost Effectiveness Measures
Numerous cost-effectiveness measures can save money and improve outcomes for government, civil society organizations, and private businesses. Solutions that institutionalize cost effectiveness analysis can be done through regulatory practices, organizational or national policy approaches, and changes in organizational culture or planning practices.
Cost effectiveness measures through regulatory institutionalization
The institutionalization of cost-effectiveness analysis in regulatory practices -for example guiding procurement or investment- can better guide management in pursuing cost-effective decisions.
Cost-benefit Analysis
Cost-benefit is an approach to decision making that includes documenting and evaluating quantified (if possible) economic costs and benefits of a specific policy, program, law or regulation. This analysis supports the identification of the most economically efficient approach to policy and programmes and can help identify and manage social and environmental risks. The use of cost-benefit analysis can be mandated prior to the determination of any major policy or programme. Guidance on when and how to use cost-benefit analysis can be introduced through internal organization regulations or by law.
Technology Upgrade and Maintenance
Business strategies aimed at switching to more cost-effective and environmentally friendly technologies (e.g. fuel efficient cars, energy efficient buildings, improved agricultural methods, etc.) Maintenance strategies are also included when they can expand the life of certain assets. While cost-effective, these strategies might require an initial capital expenditure. They are usually encouraged through internal company policies, regulatory measures or through providing targeted access to capital.
Financial and operational mergers
Merging two or more organizations can produce economies of scale and allow public and private organizations to substantially reduce operational and financial costs. For example, operational costs can be reduced by merging environmental trust funds and protected areas authorities with similar mandates. While not specific to biodiversity, these measures can and should be considered by conservation organizations. The resources saved can be reinvested in conservation.
Human Resources Management
Better management of human resources can improve an organization's effectiveness and efficiency and is critical to achieving cost-effectiveness. A vast literature is available on strategies to improve the management of human and social capital, including through, for example, monetary and non-monetary performance incentives and training. One example is reviewing and enhancing the human resources strategy for a protected area system. While not specific to biodiversity, these measures can and should be considered by conservation organizations. The resources saved can be reinvested in conservation.
Non-State Protected Areas
Formal protected areas governed (and in many cases owned and managed) by a non-state entity such as indigenous peoples and/or local communities; private individuals or organisations; or a combination of these with state involvement. This model allows for the state to forego costs of land purchase in order to establish a protected area, and often results in the management costs of the protected area to be shared between the state and the non-state entity, or carried entirely by the non-state entity.
Nudging
To influence individual’s behavior in a biodiversity favorable direction using psychology rather than financial incentives. The most cited example of a nudge is the etching of the image of a housefly in the men’s urinals at Amsterdam Shiphol airport. Nudging has been applied in natural parks to reduce that incident of visitors bringing home stones by simply changing the text of the signs. In Finland forest owners' landscape management preferences were nudged to improve social efficiency of PES schemes for biodiversity conservation which increased aggregate service provisioning. Can work as a complement to increase the effect of other solutions such as different forms of protected areas and eco- tourism.
Outsources Strategies
The public and private sector outsources part of their operations to more efficient or knowledgeable business partners. The process usually requires the set up of a competitive bidding process and of a quality control process to oversee external partners' performance. It is widely used in both the private and public sector to benefit from economies of scope and scale. While not specific to biodiversity, these measures can and should be considered by government and conservation organizations.
Enhance local budget execution
Local revenues, budgeting and spending impact biodiversity through managing land use, natural resource exploitation, local protected areas, and financing biodiviversity supportive programmes and projects. Guidelines for increasing effectiveness and biodiversity impact of local budgets can enhance impact and direct funds to biodiversity.
Reducing Harmful Impact of ODA
Improve safeguards, standards, policies, screens and their application to minimize potential harmful social and environmental impacts caused by ODA and related aid.
Enhance Public Budget Execution
Measures promoting quality spending of committed funds and removing related obstacles to effective spending. Effective budget execution (also termed delivery) is a percentage of annual public budget allocations that are actually spent by government agencies and can vary from as low as 40 percent to as high as 90 percent. Related obstacles are often due to delays in financial flows or capacity constraints. Incentives (e.g. staff incentives) and support (i.e. additional capacity) can be provided to increase the delivery. While not specific to biodiversity, these measures can and should be considered by conservation organizations.
Remove Barriers for public budget execution - internal
Internal barriers for timely and effective budget execution are often related to financial planning capacity gaps, weak accounting systems, systemic corruption practices, and the absence or poor design or individual performance and incentive systems. These barriers can be addressed through organizational capacity development (people and systems). While not specific to biodiversity, these measures can and should be considered by conservation organizations.
Remove barriers for public budget execution-external
External barriers for timely budget execution are often related to relationships among the treasury and the spending agencies. They may refer to the timing and amount of transfers as well to the clarification and strengthening of management responsibilities. While not specific to biodiversity, these measures can and should be considered by conservation organizations.
Result based budgeting
Planning and strategic management tool seeking to link budget allocations with anticipated results. The introduction of result based budgeting (RBB) contributes to achieving cost-savings and better defining priorities in the allocation of scarce public or private resources. While considered a best practice worldwide, only a few countries fully implement result based budgeting. It can also be referred to as performance based budgeting or outcome-based budgeting. Its introduction in conservation can help to mobilize additional public resources as well as to increase spending effectiveness. Results based budgeting is defined as a budgeting process which revolves around a set of predefined objectives and expected results, which, in turn, justify the resource requirements linked to outputs, and where actual performance is measured using objectively verifiable indicators.