regional technical assistance (reta) 6306 mainstreaming mfdr for poverty reduction in south asia

Regional Technical Assistance (RETA) 6306

Mainstreaming MfDR for Poverty Reduction in

South Asia

Agenda15:00 – 15:30 Registration

Chief Guest: Hon’ble Dr. Jagadish C. Pokharel, Vice Chairman, National Planning Commission

Chair: Mr. Vidyadhar Mallik, Secretary, Ministry of Finance

15:30 – 15:35 Welcome address by Subarna L. Shrestha, Officiating Secretary, NPCS15:35 – 15:50 Remarks by Ziba Farhadian-Lorie, Principal Economist, SARD, ADB15:50 – 15:55 Remarks by Paolo Spantigati, OIC, NRM

Agenda (continued)

15:55 – 16:15 MfDR change process and role of leaders, Liam McMillan/Bernard Woods

16:15 – 16:45 Presentations of Readiness Assessment and broad areas of

intervention, Dr. Champak Pokharel/ Arun Rana, Consultants, ADB16:45 – 17:30 Facilitated discussion and agreements on

broad areas of intervention, Facilitated by Liam

McMillan/ Bernard Woods17:30 – 17:40 Operationalization of MfDR, Dr. David

Husband, Consultant, ADB 17:40 – 17:50 Key note address by, NPC Dr. Jagadish C.

Pokhrel, 17:50 – 18:00 Closing Remarks by Vidyadhar Mallik,

Chairperson

Regional Technical Assistance (RETA) 6306

Mainstreaming MfDR for Poverty Reduction in

South Asia

RETA 6306:

Organization-Organization-Level Level Results Results ManagementManagement

More than a new system of measurementA long term change process involving reorientation of thinking and

planning change at the institutional level change at the management

level

Results as an Organization Change Process

Drivers of Change

External forceLeadership and vision Positive Negative

Two key stages: Stage 1: Introduction of a results-focus into

country planning creation of logframes and indicators at the

sectoral level sectoral and project accountability public disclosure of evaluation and results to

encourage demand for information Stage 2: Cascading the philosophy and

practices down to the organizations of Government responsible for delivering the planned sectoral results.

Implementing a Results Focus

Stage 1 Stage 2

•Development Economist•Governance of the State•Relatively small critical mass•Small and knowledgeable team•Central control, centrally driven

•Leadership and management of organizations•Involves employees of state organizations•Critical mass is immeasurably larger•Diffuse control•Requires communication andfeedback•Complex results agenda•Requires organizational and behavioral change which is likely to run counter to existing culture

Few countries have made the jump

Existing Results Focus

Important to note ALL organizations are already results-focused.

Organizations evolve cultures and behaviors in order to deliver a set of results These results may now be thought obsolete in

the light of the rigorous analysis of Stage One. Stage Two is not the introduction of a results

focus to an organization devoid of results, it is the realignment of an entire way of working towards a new set of results: a much more difficult task.

The ‘Alignment’ Task

Align the internal structures, systems and behaviors of Nepalese government organizations

with the

external outputs and outcomes required by the sectoral logframes. civil service organizations are often misaligned, making it almost impossible for high level outcomes to be achieved.realigning requires an organizational, change, managerial and behavioral focus, not merely a technical focus

Managing for Results: Behavioral Principles

What gets measured gets doneYou don’t get what you don’t measurePeople always make decisions to act for the ‘right’ reasonsPeople will align behavior with rewards

International Lessons Learned

International Experience

With the implementation of MfDR now a growing body of evidence on success factorsPhilippines, Nepal, Malaysia, Canada, China, Australia, Viet Nam etcThe international experience is broadly supportive of the steps Nepal has taken and the future direction

Nepali & International Convergence

Leadership at central level is criticalWell formulated, results based strategic plan is requiredFrameworks with results and indicatorsConsistent budget allocation in line with the priorities of the plan is necessaryPlan must be moved beyond just being on paper

Convergence Continued

MfDR adapted to the country contextCountry level coalitions of government and donors to support MfDRRequirements for reporting and accountability

Issues for Consideration at Organization Level

An effective M&E system is required with decision-making processes that extensively use information from the system (demand not supply driven)User ledInvolvement of elected representatives in results accountability processesUniversal incentives supporting MfDR behavior at the agency/department levelStatutory requirements for reporting and accountability

Other Considerations

“MfDR implementation is a marathon, not a 100 yard dash”Ultimately MfDR success is not based on the technical aspectsChallenges for MfDR leaders occur where the system does not deliver or if main elements of MfDR are missing

RETA 6306 Planning and Process

RETA 6306

Readiness AssessmentPlanning and pilot developmentImplementationDonor coordination

RA Objectives

To provide a descriptive and analytical assessment of the level of readiness of a particular organization to improve it results management orientationTo provide the information necessary to develop a capacity building plan to strengthen its results management approach

Technical Assessment: What elements of results management are in

place, what needs to be strengthened?Change Management Assessment: How ready is the organisation to make the

changes required?Discussion of Assessment Report with partner organisationAt each stage of the process the ‘readiness’ of the particular aspect of the organization is evaluated and capacity gaps are identified.

Clarity of ResultsAdequacy of ResourcesManagement Infrastructure: Strategy and policy Structure Systems and processes

Values, culture, vision and leadershipMonitoring systems

Plus the context – the External Environment

Readiness Assessment Categories

Desired results

Outputs & Outcomes

Actual Results

Performance Gap

Diagnostic Analysis

Category 1 Variables:Clarity of Results

Category 2 Variables:

Adequacy of Resources

Category 3 Variables:Strategy/

Policy Structure;Systems &Processes


Values/Culture;Vision/

Leadership

Confirmed Priority Causes

Capacity Building Program

Category 5:Monitoring Progress in

Managing for Results

Capacity for MFDR

Category 6:External Environment;Results context for the

organization

RA Analysis

The RA enables the ‘mapping’ of readiness against the six categories of the readiness toolThis enables identification and comparison of key areas of capacity weaknessRA details provide information required to develop interventions to strengthen capacity in the six categories

Analysis of Assessments.

RA Findings and Implementation Plans

Elements of the Readiness Assessment

Desired results

Outputs & Outcomes

Actual Results

Performance Gap

Diagnostic Analysis

Category 1 Variables:Clarity of Results


Adequacy of Resources

Category 3 Variables:Strategy/

Policy Structure;Systems &Processes


Values/Culture;Vision/

Leadership

Confirmed Priority Causes

Capacity Building Program

Category 5:Monitoring Progress in

Managing for Results

Capacity for MFDR

Category 6:External Environment;Results context for the

organization

Four Readiness Reports

Ministry of Education and Sports (Ministry Level) Ministry of Physical Planning and Works (Ministry Level) Department of Water Supply and Sewerage (Department Level) District Development Committee Dhanusha

Major Findings and Issues: External Environment to the Organizations

Good at National Level. System driven from nineties and intensified in PRSP M&E system establishment; APP;

LSGA in 1990s

2000 onwards: PRSP with log-frame by all sectors; indicators

for monitoring; project prioritization framework, MTEF and project prioritization in all budget;

business plan, Sector-wide approach for donor harmonization, Continued drive to M&E, DPMAS

Devolution; PIF policy approved; also in LSGA More donor support in RB the areas at central

and district level etc from 2001 New political environment for big change and 3

yr-Interim Plan Nepal receives prizes in MfDR!

External Environment

Key Issues Significant influence of traditional culture

in bureaucracy Political instability and slow devolution National planning and implementation

framework under new political change not yet clear

Low salary and morale of civil service System initiated at the national level but

weak transfer to organizational level (with some exceptions)

Effort is resource intensive and a long term process

Major Issues- Diagnostic Variable 1: Clarity of Results

Broad organizational Mandate of Ministries Government of Nepal (Work Division)

Regulation 2006 Sectoral results framework of PRSP has multiple contributors but lacks clear linkagesNo organizational results chain lack of clarity in addressing the outcomes of

the organization itself Lack of clarity in the approach to influencing

the outcomes to be delivered through others.Overlapping mandates even within government

Issue- Diagnostic 2 Variable : Adequacy of Resources

Insufficient budget to achieve national targets Need for focused human resource development planHuman resource capacity building in organizational management generally overlooked Modern IT systems and equipment weak at MOPPW, DDC no official internet connection -

personally arranged)

Issue- Diagnostic 3 Variable:

Management Infrastructure

Two levels of policy mismatch LSGA and Organizations between organizations

Parallel systems being developed in water supply and sanitationWeak monitoring structure and lack of resources at ministry level lack resources blocks demand driven system

Resources at department level are higher

Donor harmonization generally weak (better in education due to SWAp)Less understanding of working regulatory management frame work at medium and lower level PWD; decentralization; Autonomous

Institution Act etc leading to pileup of files, undue intervention

or slow decisions at higher level

Management Infrastructure continued

Management Infrastructure continued

Divisions, sections structures require updating Not aligned to new requirements

No performance standards in job descriptions MOES has initiated in region and district level

High Level monitoring meetings: NDAC, MDAC not occurring or irregular Erosion of demand for monitoring at lower

levels

Issue- Diagnostic 4 Variable : Values/Culture and Vision/

Leadership

Low morale of the civil service and low understanding of MfDRTraditional working patterns like Tippani remain some change has started within

organizations

Issue- Diagnostic 5 : Monitoring

and Evaluation

No M&E Policy for ministry and Lower Levels Weak M&E structure at ministry level leading to low demand for results from lower levelsNo MIS at MOPPW and DDCNo formal periodic publication showing performance gap based on M&E information at most levelsInformation on NGO and private sectors weak despite their increasing presence.

Major Suggestions and RETA Intervention

Encourage planning which incorporates a organization management and leadership perspectivestrengthen search committee systems to improve leadership in organizationsRectify policy mismatches Extend performance based evaluation system with incentives/punishmentEncourage participation in international professional forums in MfDR develop organizational results chains (RETA potential support area) Strengthen ministry level and DDC M&E structures (RETA potential support area)

Enhance MfDR Understanding through National level training on MfDR and

international exposure (RETA potential support area)

Support periodic succinct publications in Performance Gap and Assessment e.g. Quarterly 10 page document with tables

and bullet issues (RETA potential support area)

Develop training manual on MFDR

initiate regular professional managerial dialogue system in organizations (RETA potential support area) Develop MfDR DVD (RETA potential support area) Assist establish/strengthen change management unit at ministry level (RETA potential support area) Further work to assist institutional reorganization at ministry and DDC level

Discussion of the Key Issues

Presentation:TA 4765

Keynote Address

Dr. Jagadish C. Pokhrel, Vice Chair Planning

Commission

Closing Remarks

Vidyadhar Mallik,Secretary, Ministry of Finance

MfDR Infrastructure

1. Clarity of Results

2. Adequacy of Resources (human, financial, physical, technical

3. Management Infrastructure

4. Values (Culture) and Vision (Leadership)

5. Monitoring Progress in MfDR

PolicyMandate for

MfDR

PlanningSetting Dev. Objectives

FinanceBudgeting for Results

Public ServiceIncentives &

Rewards

StatisticsData on Results

AuditPerformance

Accountability

OversightExecutive Branch

Supervision

6. Overarching Government MfDR Approach and Structure

6. Clients / Stakeholders• Demand• Results Setting and Review

PolicyMandate for

MfDR

3. Management Infrastructure• Direction, performance orientation, client focus• Delegation, coordination, cascading outputs• Target setting, coordination, client interaction

4. Values (Culture) and Vision (Leadership)• Results orientation, client focus, professionalism, value for money• Vision of results, commitment, communication, self-reflection• Attitudes to change, change readiness


PlanningSetting Dev. Objectives

1. Clarity of Results• Results framework with indicators• Standards and targets for outputs• Outputs cascaded within organisation• Outputs incentives, rewards and censure


FinanceBudgeting for Results

2. Adequacy of Resources (human, financial, physical, technical)• Realistic relationship between resources and outputs• Resources available as planned and required


Public ServiceIncentives &

Rewards


5. Monitoring Progress in MfDR• Data collection plan• Use of data in all facets of management


StatisticsData on Results



AuditPerformance

Accountability













OversightExecutive Branch

Supervision

6. Clients / Stakeholders• Demand• Results Setting and Review



Clarity of Purpose

Stage 1

The basis for real advances in strategic clarity is client need, not history or mandate: identify one typical user group of the

services of the organization. A real user, not an imaginary one!

use user need / perceived value to identify the group. having gone through the process for one user

group, you can repeat it for other groups

Stage 2

Identify the Dimensions of Service Quality for the group you have chosen. identify not the features of the

products/services offered by your organization, but the benefits and services sought by the user group. what total needs are they trying to satisfy? -

not what services are they currently using, nor the delivery role you have traditionally played in delivering those services.

Stage 3

Rate the Dimensions of Perceived Service Quality you may have developed a long list of

benefits during Stage 2 not all will be equally important in delivering

perceived quality identify the most important of the services

required and arrange them according to rank allocate 100 points across the top five or six

dimensions of perceived quality that you identify.

Dimensions of Service Quality

Stage 4Assess the relative performance of your organization on the Critical Dimensions of Perceived Service QualityIdeally this should be an external task.

internally you have to guard against being too optimistic or pessimistic.

a good way of checking is to compare the ratings with recent successes or failures in the services you offer to the public.

Good ratings on the critical dimensions should be reflected in success.

If successes do not reflect the ratings either the dimensions or the ratings are wrong. Or there may be a time lag in operation.

You can map your performance against other organizations within the Government, or against the equivalent organizations in other countries.

Comparing Dimensions

Stage 5

Having completed the analysis for one user group, the analysis can be extended across all user groups – looking for common features. Key questions. Which dimensions of service quality: do you need to be as good as the benchmark? do you need to be better than the benchmark? can you cut costs by delivering value at a lessor

rate than the benchmark? are becoming irrelevant to the users and can be

cut out?

Accor: Analysis of Service Quality

Are they ‘innovators’? new shapes of service quality curves parts of an organization that are pioneers contribute to

overall reform in the organization Are they, at a less innovative level, “migrators”, offering

better service quality without changing the shape of the curve?

Are they “settlers”, focusing upon just performing to the minimum government standards, conforming, at best, to benchmark curve shapes and levels.

Service quality curves that conform in shape to the standard

parts of the organization that are settlers don’t contribute to real reform

Real improvements in results requires all three in the right areas and right proportions.

Summary: Creating Service Quality

identify and discuss the prevailing thinking - then challenge it investigate assumptions the strategic focus the approaches to customers, people and assets

ask the key questions: what can we eliminate? what should be reduced below the current

standard? what should be raised? what new factors are needed?

Management Meeting

Define the internal clarityDefine the inputs and activities to the delivery of the internal qualityAssess your performance on the inputs and activitiesAssess the level of delivery required in each of the inputs and activitiesDiscuss the shape of the service value curve

MOPPW

Policy, Legislative, and Plan

Formulation & Updating

Donor Coordination

Communication

Framework

Department empowered to

execute projects and

programs effectively Timely and

Rational Decisions

Activities

Outputs

Org. Outcome

??

DWSS

Development of

guidelines / Norms

MonitoringDisseminatio

nReporting

Training

Project Outputs

Timely strategic decision-

making by MoPPW

Trained persons

Activities

Outputs

Org. Out-come

Guidelines / Norms

Information / Analysis

Division Offices fulfilling

mandate as per direction

Project Imple

MoES

?Policy

Formulation ?

Policies

Enhanced Assessment and

Evaluation System

?

Activities

Outputs

Org. Out-come

?

D DDC

Delivery of Services

Policy formulation

Planning

Coordination

?

?

?

Activities

Outputs

Org. Out-come

??

?

Monitoring

Defining Your Results

Alignment of Organisational and Sector Results

Requires National Development Plan and Sector plan that are results basedThe Sector plan result statements provide the linkage between each organization contributing to the sectorWhile the Sector results statements are common, the contribution can be different

The Organization

Highest level statement, usually from national development plan, societal benefits from sector improvements

Societal Level Goals

Sectoral Level Goals

Organizational Level Outcomes

Organizational Level Outputs

Organizational Level Activities

Sector contribution at the country level, in national and/or sector plan, longer term benefits

Medium term results in the sector, directly influenced by the organisation by its outputs

Products, services, goods produced and delivered by the organisation, mostly to external clients and stakeholder

Activities and processes undertaken internally by the organisation, to produce the outputs

Defining Results – Rules of ThumbOrg Outputs Org Outcomes Higher Level

Produce Directly Influence Contribute to

99.9% Control Partners Control No Control

Accountable for Manage towards Correct logic

100% Attribution 60% Attribution 20% Attribution

Readily changed Unanimity Change=new program

Groups / Individuals Organizations Region/country

Annual By end of program Post-program

How and Why

Inputs

Activities

Outputs

Outcomes

Sectoral Goals

Why?

Why?

Why?

Why?

Societal GoalsWhy?

How and Why

Inputs

Activities

Outputs

Outcomes

Sectoral Goals

Why?

Why?

Why?

Why?

Societal GoalsWhy?

How?

How?

How?

How?

How?

Sustained Economic Growth and Alleviation of Poverty

Improvement in the quality and adequacy of strategic infrastructure facilities

Improved national road network for access & mobility

of people, goods & services

Functional major flood control system mitigating

flooding damages & preventing loss of lives

and properties

Quality & vital infrastructure

facilities responsive to needs of non-infra agencies

Properly maintained

national roads

Well-constructed / improved / rehabilitated

national roads

Properly maintained major flood

control structures/

facilities

Well-constructed/ improved /

rehabilitated major flood

control structures /

facilities

Quality engineering & other services

for construction,

improvement & rehabilitation of

other infrastructure



Org Level Outcomes

Org Level

Outputs

Org Level Activities

Poverty Reduction and Sustainable Development

Policies developed, coordinated and

compliance monitored

Institutional capacity building programs and

other interventions conducted, facilitated

and implemented

Improved policy environment promoting the implementation of decentralization and devolution

(under the local government code)

LGUs delivering more Efficient, Effective and

Responsive Basic Services

Responsive and Accountable Local Government Units

Peaceful, Self-Reliant and Progressive Communities



Org Level Outcomes

Org Level

Outputs

Org Level Activities

Within the Organization

The results framework has to become the way the organization tells the story of what it does and why it existsThe outputs have to be cascaded down within the organizationResponsibility for output (internal and external) production is divided upBudget is assigned to outputs

Example of Organizational Outputs

Org Output - Properly maintained national roadsAnnual Output – 500 km of Priority 1 Roads maintained to StandardBudget $1 million

Cascading

Sub-Outputs and indicators to measure them are assigned to units within the organizationUnit heads are responsible and accountable for sub-output production and unit performanceExternalities / risks are identified and documented

ExampleAnnual Output – 500 km of

Priority 1 Roads maintained to Standard

Sub Output 1 – Identification of 500 km of

Priority 1 Roads

Sub Output 2 – Maintenance

Supplies Procured and Distributed

Sub Output 3 – 500 km

of Road Maintained

Sub Output 4 – Quality control /

monitoring of 500 km undertaken

Policy and Planning Unit

Finance UnitStores Unit

Maintenance Unit

Monitoring UnitInformation

Systems Unit

Link to Performance

Management at each level demands information on output and sub-output achievement to measure progressM&E systems capture and package the performance information for managementPerformance is assessed and rewarded at the individual, unit, and organizational levelExternalities are taken into account in assessment

Role of Senior Management

Promote a culture of results and performanceManage with performance informationDemand information on performance while facilitating its collection and analysisUse whatever incentives / sanction that are available, to manage behavior

RETA 6306Action Planning

Discussion of Issues

Discussion of RETA Priorities

Assigning Priorities to Issues and Solutions

Please discuss and identify Interventions for each issue.Assign each intervention a timeframe S=Short, M=MediumIn ‘Potential RETA Support’ Assign P1 for Priority level 1, P2 for Priority level 2 and P3 for Priority level 3

S P1

Post Seminar Discussions

Stakeholder / Client Analysis

Organization

Direct Contact Stakeholders / Clients

Indirect Contact Stakeholders/ Clients

Stakeholder / Client Analysis Exercise

Brainstorm a list of all the external stakeholders, clients, customers, beneficiaries that you haveSeparate them into two lists: Ones you have direct contact with Ones you are indirectly linked to

For Direct ones, list what behavioural changes you would like to / should influence with themThis will help to develop your "clarity of purpose"

Next Steps from Retreats

regional technical assistance (reta) 6306 mainstreaming mfdr for poverty reduction in south asia

Documents

jumpexisting results

planned sectoral results

new set of results

organization devoid

results focustwo key

mfdr change process

organization change

behavioral change