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
Category 4 Variables:
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
Category 2 Variables:
Adequacy of Resources
Category 3 Variables:Strategy/
Policy Structure;Systems &Processes
Category 4 Variables:
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
6. Overarching Government MfDR Approach and Structure
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
6. Overarching Government MfDR Approach and Structure
FinanceBudgeting for Results
2. Adequacy of Resources (human, financial, physical, technical)• Realistic relationship between resources and outputs• Resources available as planned and required
6. Overarching Government MfDR Approach and Structure
Public ServiceIncentives &
Rewards
1. Clarity of Results• Results framework with indicators• Standards and targets for outputs• Outputs cascaded within organisation• Outputs incentives, rewards and censure
5. Monitoring Progress in MfDR• Data collection plan• Use of data in all facets of management
6. Overarching Government MfDR Approach and Structure
StatisticsData on Results
5. Monitoring Progress in MfDR• Data collection plan• Use of data in all facets of management
6. Overarching Government MfDR Approach and Structure
AuditPerformance
Accountability
1. Clarity of Results• Results framework with indicators• Standards and targets for outputs• Outputs cascaded within organisation• Outputs incentives, rewards and censure
2. Adequacy of Resources (human, financial, physical, technical)• Realistic relationship between resources and outputs• Resources available as planned and required
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
5. Monitoring Progress in MfDR• Data collection plan• Use of data in all facets of management
6. Overarching Government MfDR Approach and Structure
1. Clarity of Results• Results framework with indicators• Standards and targets for outputs• Outputs cascaded within organisation• Outputs incentives, rewards and censure
2. Adequacy of Resources (human, financial, physical, technical)• Realistic relationship between resources and outputs• Resources available as planned and required
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
5. Monitoring Progress in MfDR• Data collection plan• Use of data in all facets of management
6. Overarching Government MfDR Approach and Structure
OversightExecutive Branch
Supervision
6. Clients / Stakeholders• Demand• Results Setting and Review
1. Clarity of Results• Results framework with indicators• Standards and targets for outputs• Outputs cascaded within organisation• Outputs incentives, rewards and censure
5. Monitoring Progress in MfDR• Data collection plan• Use of data in all facets of management
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
Societal Level Goals
Sectoral Level Goals
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
Societal Level Goals
Sectoral Level Goals
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"
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