Introduction To Results Management

An Introduction to Results Management
This guide explains the main principles of results management, the core of the managing for
development results approach. It also discusses the implications of implementing the approach
and its application in Asian Development Banks operations at the country and project levels.

About the Asian Development Bank
The Asian Development Bank (ADB)s work is aimed at improving the welfare of the people of
Asia and the Pacific, particularly of the 1.9 billion who live on less than $2 a day. Despite many
success stories, Asia and the Pacific remains home to two thirds of the worlds poor. ADB is a
multilateral development financial institution owned by 64 members, 46 from the region and 18
from other parts of the globe. ADBs vision is a region free of poverty. Its mission is to help its
developing member countries reduce poverty and improve the quality of life of their citizens.
ADBs main instruments for providing help to its developing member countries are policy
dialogues, loans, technical assistance, grants, guarantees, and equity investments. ADBs annual
lending volume is typically about $6 billion, with technical assistance usually totaling about $180
million a year.
ADBs headquarters is in Manila. It has 26 offices around the world and more than 2,000
employees from over 50 countries.
Asian Development Bank
6 ADB Avenue, Mandaluyong City
1550, Metro Manila, Philippines
Tel +63 2 632 4444
Fax +63 2 636 2444
information@adb.org
www.adb.org Printed in the Philippines
i
capacity Ior resu|ts management
!N)NTRODUCTIONTO2ESULTS-ANAGEMENT
0RI NCI PL ES ) MPL I CAT I ONS AND !PPL I CAT I ONS
ii
an introduction to resu|ts management
Asiah DevelopmehI 8ahk 2006
All righIs reserved.
1he views expressed ih Ihis book are Ihose o! Ihe
auIhors ahd do hoI hecessarily re!lecI Ihe views ahd
policies o! Ihe Asiah DevelopmehI 8ahk, o! iIs 8oard
o! Goverhors, or o! Ihe goverhmehIs Ihey represehI.
1he Asiah DevelopmehI 8ahk does hoI guarahIee
Ihe accuracy o! Ihe daIa ihcluded ih Ihis publicaIioh
ahd accepIs ho respohsibiliIy !or ahy cohsequehce
o! Iheir use.
Use o! Ihe Ierm "couhIry" does hoI imply ahy
judgmehI by Ihe auIhors or Ihe Asiah DevelopmehI
8ahk as Io Ihe legal or oIher sIaIus o! ahy IerriIorial
ehIiIy.
PublicaIioh SIock No. 011306
Published ahd prihIed by Ihe
Asiah DevelopmehI 8ahk, 2006
iii
CHAPEk 1: kE5U|5 MANAGEMEN: CONEX AND EVO|U|ON
Cvervlew ond Purpose ol lhe Gulde
Hlslorlcol Conlexl ond Evolullon
CHAPEk 2: WHA kE5U|5 MANAGEMEN |5 AND WHY |'5 |MPOkAN
Vhol Resulls Monogemenl ls Mol
Vhol Resulls Monogemenl ls
A Loglcol Approoch lo Couse ond Ellecl
Focus on Culcomes
Leodershlp
Porllclpollon
Leornlng ond lmprovemenl
lnlegrollng Slokeholder ond Cllenl Concerns
CHAPEk 3: PU|NG kE5U|5 MANAGEMEN |NO PkAC|CE
Relorms ore Requlred
Prerequlslles: Leodershlp, Cullure, ond Syslems
lhe Cycle ol Resulls Monogemenl
CHAPEk 4: |MP|EMEN|NG kE5U|5 MANAGEMEN; CHA||ENGE5 AND OPPOkUN||E5
Chollenges lo Ellecllve Resulls Monogemenl
Flve Key Success Foclors
MAEk|A|5 AND kE5OUkCE5 ON |NEkNA|ONA| EXPEk|ENCE W|H kE5U|5 MANAGEMEN
APPEND|X 1: kE5U|5 MANAGEMEN A HE COUNkY |EVE|
Counlry Cwnershlp ond Leodershlp
Allgnmenl
Hormonlzollon
lhe Aslon Developmenl Bonks Resulls BosedCounlry Slrolegy ond Progrom
APPEND|X 2: kE5U|5 MANAGEMEN A HE PkO1EC |EVE|
Slluollon Anolysls
Pro|ecl ldenllhcollon
slng lhe Deslgn ond Monllorlng Fromework
Perlormonce lorgels ond lndlcolors
nderslondlng Pro|ecl Assumpllons ond Rlsks
Verllcol Loglc ol Assumpllons ond Rlsks
#ONTENTS

1
1

Z
Z
8
8

11
12
13

1Z
18

22
22
23
23

28
33
34
3
3
3Z
iv
0REFACEAND!CKNOWLEDGEMENTS
The Aslan Development 8ank (AD8) ls lmplementlng managlng for development results based
on three plllars, (l) strengthenlng developlng member countrles' (DMC) capaclty to manage for
results, (ll) strengthenlng AD8's own results management, and (lll) strengthenlng lnternatlonal
partnershlps for managlng for development results.
Thls gulde was developed by the Pesults Management Unlt to asslst AD8 staff and DMC offlclals.
|t was wrltten by Per O. 8astoe, Prlnclpal Pesults Management Speclallst, and Clarence Henderson,
Staff Consultant, wlth valuable support from colleagues ln the Pesults Management Unlt and ln
other parts of AD8.
v
vi
1
chapter glves a brlef hlstorlcal overvlew
of results management and lts adaptatlon
ln the development communlty. Chapter
2 dlscusses the baslc prlnclples and loglc
behlnd results management, Chapter
3 sets out a step-by-step method for
applylng the approach, and Chapter 4
dlscusses challenges and success factors
for lmplementatlon. The llst of references
ldentles useful resources on results
management, whlle the two appendlxes
descrlbe how the concept ls belng applled to
pro[ect management and country strategles
ln the Aslan Development 8ank (AD8).
7raditionaI pubIic sector management.
Publlc sector organlzatlons are
preoccupled wlth rules and procedures,
wlth an emphasls on dellverlng servlces ln
compllance wlth speclc guldellnes and
buslness processes. As such, there has
been llmlted attentlon to cllents' needs
and customlzlng servlces for speclc
clrcumstances. Publlc sector organlzatlons
have ln many ways tradltlonally been more
supply than demand drlven. Slmllarly,
ln development organlzatlons, the
emphasls has typlcally been on processlng
T
he Aslan Development 8ank (AD8) has made a
commltment to enhance lts results orlentatlonlts
development enectlvenessby lmplementlng
"managlng for development results (MfDP). whlle MfDP
ls a new term prlmarlly used wlthln the development
communlty, the core concept ls well establlshed and has
been applled ln many publlc and prlvate organlzatlons
ln the last two decades. These other organlzatlons
have used terms such as "results-based management,
"performance management, and "managlng for
outcomes. The core of these dlverse concepts ls baslcally
the same and can for slmpllclty be referred to as "results
management.
l

Pesults management has lts roots ln buslness
management theorles, applled soclal research, program
evaluatlon, and expendlture management. The approach,
lnltlally applled ln prlvate sector organlzatlons, moved
qulckly to the publlc sector as part of reform enorts ln the
l980s and l990s. Over the last decade, lt has lncreaslngly
been lmplemented ln development agencles and
multllateral organlzatlons. Pesults management lmplles a
new way of dolng buslness and a fundamentally dlnerent
approach to management than has tradltlonally been
used ln publlc sector and development organlzatlons.
The purpose of thls gulde ls to explaln the maln
prlnclples of results management and the lmpllcatlons
of lmplementlng lt ln an organlzatlon. Thls lntroductory
Dverview and Purpose of the Cuide
|:a||: |aaama|. |aa|\| aa1 |.a|a||aa
7he core
concept is weII
estabIished
and has been
appIied in
many pubIic
and private
organizations
in the Iast two
decades.
l
"Pesults management refers here to approaches to manage programs, pro|ects, and organizations for results."Pesults refers to both outputs and outcomes with a
particular focus on the relationship between outputs and outcomes.
HistoricaI Context and voIution
2
and lmplementlng pro[ects accordlng to prescrlbed
procedures. |n other words, the concern ln many
organlzatlons has been to "do thlngs rlght rather than to
"do the rlght thlngs.
Thls approachthe old way of dolng buslness
began to change durlng the late l960s. Plannlng,
programmlng, and budgetlng systems were developed
to lmprove the quallty of nanclal plannlng and
cost accountlng and, more fundamentally, to ensure
accountablllty. These systems allowed management
to exerclse unprecedented control over lnputs such
as human resources and operatlng and capltal
expenses. Management by ob[ectlves (M8O) was
lntroduced ln publlc sector organlzatlons ln the
mld-l970s, wlth many managers learnlng to set
ob[ectlves and ldentlfy good performance lndlcators,
thls slgnlcantly lmproved thelr ablllty to manage
enectlvely and delegate responslblllty approprlately.
Durlng the l970s and l980s, "program management
by actlvlty methods were developed. Among the
productlvlty tools that emerged were the work
breakdown structure, Gantt charts, the crltlcal
path method, and the program evaluatlon and
revlew technlque (PLPT). These tools provlded
relatlvely strlct blueprlnts for executlng
programs and pro[ects, renectlng thelr orlglns
ln dlsclpllnes such as englneerlng and systems
management.
8y the end of the l980s, governments
ln many developed countrles (especlally
Organlsatlon for Lconomlc Co-operatlon
and Development members) had
reorlented themselves to focus more
on cllents and servlces. They learned
from varlous management trends
quallty control/quallty assurance, |SO
accredltatlon, total quallty management
(TQM)generally related to
contlnuously lmprovlng servlce quallty
and standards.
The l990s saw a serles of extenslve
publlc sector reforms ln many Luropean
and North Amerlcan countrles and ln
Australla and New Zealand ln response
to growlng economlc, soclal, and polltlcal
pressures. Governments were almost
unlformly experlenclng balloonlng scal
and budgetary declts, the competltlve
pressures of globallzatlon, growlng publlc
demands for cost-enectlve government
servlces, and calls for accountablllty. As a
consequence, they were forced to respond
to publlc dlscontent and to the need
for more transparent and accountable
governance at all levels ln the publlc sector.
7he deveIopment sector. The
l990s ln the development sector can
be descrlbed as an era of reform and
of reformulatlon. Dlsparltles between
rlch and poor were growlng, and ald
agencles were lncreaslngly concerned
about the lmpact of globallzatlon on
7he concern
in many
organizations
has been to
"do things
right" rather
than to "do
the right
things."
3
poor people ln developlng countrles. At the same tlme,
there was a reallzatlon that the concrete results of
tradltlonal development asslstance were not llvlng up to
expectatlons, l.e., that lntended or deslred results were
not belng achleved. There was also great concern that
development asslstance funds be used more equltably and
enectlvely.
The "results revolutlon came to the development
sector ln part as a result of "ald fatlgue, a generallzed
perceptlon among lnnuentlal publlcs, government
declslon makers, and donors that ald programs were
not partlcularly enectlve ln attalnlng the development
ob[ectlves they were created to achleve. At the same
tlme, agencles' budgets were decllnlng, and governments
themselves were undergolng ma[or organlzatlonal
reforms. 8y 2000, there was growlng pressure for
lnstltutlonal reform and a rethlnklng of the tradltlonal way
of dolng buslness.
The results revolutlon was also fueled by the
development of powerful tools based on systematlc
analysls of loglcal cause and enect. Loglcal frameworks
(logframes) were qulckly accepted as valuable tools for
lmprovlng plannlng and lmplementatlon. Lxperlences
from publlc sector reforms gradually trlckled lnto
development organlzatlons, and new approaches and
tools were developed.
The transltlon to results orlentatlon was lmpllclt ln the
Mlllennlum Development Goals (MDGs) adopted by l89
countrles ln 2000. The MDGs set clear targets for eradlcatlng
resu|ts management. context and evo|ution
2
Agreed at the |nternational Conference on Pinancing for Development in Monterrey, Mexico, 2002
3
Managing for Development Pesults: Second |nternational Poundtable on Pesults, Marrakech, Pebruary 2004: 1o|nt Vottolech VemotonJum.
4
Pot|s 0eclotot|on on A|J lllect|veness: Ownetsh|, lotmon|zot|on, Al|nment, kesults onJ Vutuol Accountoc|l|ty. 2 March 2005, High-Level Porum on Aid Lffectiveness.
7he "resuIts
revoIution"
came to the
deveIopment
sector in part
as a resuIt of
"aid fatigue."
poverty and other sources of human
deprlvatlon. The Monterrey Consensus
2

(2002) stressed the need to moblllze
nanclal resources more emclently and
emphaslzed development enectlveness as
a core operatlonal prlnclple. Subsequently,
the 1olnt Marrakech Memorandum
3

slgnaled a renewed emphasls on ald
enectlveness, wlth partlcular emphasls
on the harmonlzatlon and allgnment
of programmlng, monltorlng, and
evaluatlon actlvltles. More recently,
the Parls Declaratlon
4
ldentled the
ve prlnclples of country ownershlp,
allgnment, harmonlzatlon, managlng for
results, and mutual accountablllty as the
core of the global development agenda.
|n other words, the push towards results
management has galned momentum and
there ls now a broad consensus regardlng
the lmportance of achlevlng measurable
results.
4
5
P
esults management, properly lmplemented,
lmproves emclency and enectlveness. Pesults
management goes beyond focuslng solely on
formal systems and measurement to emphaslze shared
values and leadershlp as key success factors. Thls lmplles a
multlfaceted approach to deal enectlvely wlth complexlty
and an ablllty to adapt to change whlle malntalnlng core
values and publlc condence. Pesults management should
have embedded wlthln lt a commltment to organlzatlonal
learnlng and lmprovement ln support of results-based
declslon maklng related to achlevlng the organlzatlon's
strateglc goals.
Por most organlzatlons, results management
represents a new and dlnerent way of dolng buslness. |n
order to more clearly understand what thls lmplles, lt may
rst be useful to also clarlfy what results management ls
not.
ResuIts management is not the same as MD. M8O,
orlglnally descrlbed by Peter Drucker over half a century
ago, ls based on allgnlng goals and subordlnate ob[ectlves
throughout an organlzatlon. |n theory, the organlzatlon-
wlde allgnment of goals and ob[ectlves maxlmlzes
enectlveness and leads to achlevlng ob[ectlves. |ndeed,
there are many posltlve lessons to be learned from M8O,
lncludlng the need for a systematlc, strateglc plannlng
process and a managerlal focus on ob[ectlves rather than
on actlvltles. However, M8O works only lf ob[ectlves are
clearly understood, few ln number, and speclc. |t works
best wlth centrallzed organlzatlons and assumes full
What ResuIts Management Is Not
W|a| |:a||: |aaama| |: |a1 W| ||: |m,a||aa|
ResuIts
management
goes beyond
focusing soIeIy
on formaI
systems and
measurement.
organlzatlonal control over outcomes and
xed relatlonshlps between lnputs and
outputs. |n contrast, results management
works best ln decentrallzed organlzatlons
operatlng ln nuld and changlng
envlronments.
ResuIts management is not the
same as program evaIuation. Tradltlonal
evaluatlons are generally completed only
after a pro[ect or program ls completed. |n
most evaluatlons, ndlngs are not fed back
lnto the organlzatlon as part of an lteratlve,
responslve, declslon-maklng process.
Pro[ect managers seldom recelve real-tlme
feedback, lnstead, feedback comes only
wlth the ndlngs of the formal evaluatlon
by whlch tlme lt ls no longer posslble to
make correctlons. Peal-tlme (or nearly
real-tlme) feedback loops are lntegral to
results management and play a key role
ln supportlng results-orlented declslon
maklng. The two approaches complement
each other and are lmportant components
of a comprehenslve results management
approach.
ResuIts management is not just a
design tooI. The logframe was orlglnally
developed for use by the Unlted States
Agency for |nternatlonal Development
(USA|D) ln the early l970s. Slnce then,
the logframe has become a key plannlng
6
and management tool for many development agencles
8rltaln's DP|D, Canada's C|DA, Australla's AusA|D, and
Germany's GTZ to name [ust a few. Typlcal uses of the
logframe have been to support partlclpatory pro[ect
plannlng, to serve as an analytlc tool to document pro[ect
results, and to provlde a sound monltorlng and evaluatlon
framework. The logframe has clearly proven lts value
as a management and plannlng tool and ls now rmly
establlshed as an essentlal tool ln development work.
|ndeed, the logframe ls the prlmary tool through whlch
development agencles conceptuallze pro[ect ob[ectlves
and determlne approprlate strategles and tactlcs to
attaln those ob[ectlves. However, as orlglnally formulated,
the logframe's prlmary appllcatlon has been as an
analytlcal tool for pro[ect deslgn. |n the context of results
management, modlcatlons to the orlglnal logframe are
requlred, partlcularly as stakeholder understandlng of
the causal relatlonshlps between expected results and
underlylng assumptlons and rlsks are elaborated. Thls
dynamlc element ls generally absent ln the tradltlonal
logframe approach.
Pesults management ls slmultaneously (l) a management
approach and (ll) a set of tools for strateglc plannlng,
monltorlng and evaluatlng performance, reportlng,
and organlzatlonal lmprovement and learnlng. Pesults
management lmproves organlzatlonal performance by
applylng tradltlonal tools such as strateglc plannlng,
results frameworks, monltorlng, and
program evaluatlon ln the modern context
of decentrallzatlon, networklng, nexlblllty,
partlclpatory processes, and accountablllty.
At the core of "results thlnklng ls the concept
of the results chaln, a schematlc lllustratlon
of the lntended causal relatlonshlps among
varlous elements over tlme (see 8ox l).
5
The
results chaln clearly shows the plauslble,
causal relatlonshlps among lts elements,
whlle also clarlfylng the varlous cycllcal
processes and feedback loops planners
need to be aware of. The baslc ratlonale
ls to plan from rlght to left by lnltlally
focuslng on lmpacts and lntended
outcomes and then ldentlfylng the
outputs, actlvltles, and lnputs requlred to
achleve them. Tracklng performance then
goes from left to rlght, feedlng lnformatlon
back to lnputs and actlvltles to make
necessary ad[ustments and lmprovements
thus leadlng to better results.
The core of results management ls lts
focus on deslred outcomes. Outcomes
What ResuIts Management Is
A LogicaI Approach to
Cause and ect
Focus on Dutcomes
5
See also "Glossary of Key Terms in Lvaluation and Pesults 8ased Management published by OLCD-DAC and available the following website: http://
www.oecd.org/dataoecd/29/2l/2754804.pdf
For most
organizations,
resuIts
management
represents
a new and
different
way of doing
business.
7
behavlor and attltude to support the
results orlentatlon.
8uy-ln and support can only be
achleved by actlvely lnvolvlng stan and
stakeholders. People are lncllned to
reslst any approach that ls percelved as
belng lmposed from above. However,
when stan are actlvely lnvolved ln
developlng and lmplementlng a results
approach, they become owners of
the process. Thus, partlclpatlon plays
a key role ln ensurlng relevance and
responslveness, denlng reallstlc
expected results, accurately assesslng
rlsks and assumptlons, monltorlng
progress towards expected results,
reportlng on performance, and assesslng
lessons learned and provldlng lnput lnto
management declslons.
are the lntended, lntermedlate enects of an lnterventlon's
outputs. At the sectoral or country level, they are shaped by
many factors, wlth any partlcular pro[ect or program maklng
only a marglnal contrlbutlon. whlle lt ls lmportant to have
a vlslon of deslred lmpact, actually managlng for lmpact ls
unreallstlc and ln fact lmposslble. Peallstlcally, managers
of speclc pro[ects or programs alm to manage progress
towards outcomes. Glven that achlevlng outcomes depends
ln part on factors beyond the dlrect control of a pro[ect
or program, a dlnerent approach to attrlbutlon than that
tradltlonally used for lnputs or outputs ls needed. Such an
outcome orlentatlon represents a fundamentally dlnerent
way of thlnklng about stakeholder and cllent relatlonshlps
that requlres managlng for results across all layers of the
organlzatlon, wlth a conslstent focus on partnershlp and
collaboratlon.
The role of leadershlp ls essentlal not only to set the dlrectlon
for and constantly contrlbute to clarlfylng the core functlons
and ob[ectlves of the organlzatlon but also to model the
vhat resu|ts management is and vhy its important
Leadership
Participation
uy-in and
support
can onIy be
achieved
by activeIy
invoIving
staff and
stakehoIders.
8
Unless results management ls percelved as useful and
appllcable, lt ls llkely to be vlewed negatlvely as lnvolvlng
addltlonal requlrements and placlng extra burdens on
stan. Successful lmplementatlon requlres creatlng and
nurturlng an organlzatlonal culture ln whlch outcomes are
valued because they are understood by all stakeholders
to be lmportant. Thls lmplles a shlft from tradltlonal,
procedure-orlented bureaucratlc thlnklng to nexlble,
results-focused thlnklng that ls responslve to cllent
demands. Thls requlres that managers and stan see the
value of adoptlng an outcome orlentatlon and uslng
performance lnformatlon to achleve relevant outcomes.
|mproved knowledge ls a prerequlslte for maklng
better declslons. Systematlc feedback loops help to
ldentlfy those factors that predlct good performance (l.e.,
achlevlng results). |mprovlng the now of lnformatlon about
results supports maklng more approprlate and tlmely
strateglc declslons about lmplementatlon and quallty
lmprovements.
All publlc sector and development organlzatlons have
stakeholders that are "partners and "cllents. The nature
of partners and cllents dlners from organlzatlon to
organlzatlon. |n a government agency, cllents mlght
be the reclplents of servlces, ln a development agency,
cllents mlght be governments of developlng countrles.
Slmllarly, the term "partner ln government mlght refer
to other publlc sector agencles, whlle ln a development
Learning and Improvement UnIess resuIts
management
is perceived
as usefuI and
appIicabIe,
it is IikeIy to
be perceived
negativeIy.
agency lt mlght refer to other donors or
lnternatlonal organlzatlons.
Organlzatlons are accountable to thelr
stakeholders, and stakeholders should be
lnvolved ln maklng the transltlon to results
management. Thus, ln both publlc and
prlvate sector organlzatlons, successful
results management requlres bulldlng and
sustalnlng transparent and accountable
strateglc partnershlps.
Integrating StakehoIder
and CIient Concerns
9
capacity Ior resu|ts management vhat resu|ts management is and vhy its important
10
11
capacity Ior resu|ts management |a|||a |:a||: |aaama| |a|a ||a:||:
M
aklng the transformatlon to
a true results orlentatlon ls
challenglng ln vlrtually all well-
establlshed organlzatlons. Technology and
management lnformatlon systems may
need to be slgnlcantly upgraded, and
stan must greatly lmprove thelr knowledge
of results management. The process of
becomlng results focused requlres the
understandlng and commltment of top
management, a supportlve organlzatlonal
culture, and stan lncentlves that prlorltlze
achlevlng results rather than conformlng
to partlcular buslness processes. |n short,
results management has ma[or lmpllcatlons
for the organlzatlon. 8ox 2 presents some
of the lmpllcatlons of results management
for organlzatlonal reform and change.
Reforms are Required
Box 2: ReIorm Aspects oI Results Management
Acceuntab|||ty. Ccmmlttlng tc results management requlres that
management and staff be held aoocuntable fcr apprcprlate levels cf
results.
C||ent fecus. ^ohlevlng results ls llnked tc understandlng stakehclders`
perspeotlves and needs; thus, there ls a slgnlfloant emphasls cn
partlolpatcry prcoesses and ensurlng that the crganlzatlcn ls
respcnslve tc the needs cf beneflolarles.
5tream||ned bus|ness recesses. ln crder tc aohleve results, tradltlcnal
crganlzatlcns must make lmpcrtant ohanges tc thelr cperatlcnal
pclloles and prcoedures tc lnorease efflolenoy, lmprcve the allcoatlcn cf
rescuroes, and enhanoe transparenoy.
ecentra||zat|en. Respcnslveness lmplles delegatlng authcrlty tc
aoocuntable staff and then empcwerlng them tc dc thelr jcbs.
Werk|ng |n strateg|c artnersh|s. lnvclvlng partners and stakehclders
ln results management ls essentlal. ln the ocntext cf develcpment wcrk
at the ocuntry level, develcpment partners must harmcnlze thelr
aotlvltles amcng themselves and ensure that the oclleotlve results cf
thelr effcrts are allgned wlth ocuntrycwned develcpment cbjeotlves.
5taff |ncent|ves and tra|n|ng. Managlng fcr results represents a
fundamentally dlfferent way cf dclng buslness. Tradltlcnal lnoentlve
systems reward aotlvltles and prcoesses rather than aohlevements and
results. Results management requlres that staff be rewarded cn the
basls cf measured results and that they be suppcrted wlth sclld
tralnlng prcgrams, perfcrmanoe lnfcrmatlcn databases, tcclklts,
mentcrlng, and cther rescuroes.
0rgan|zat|ena| change. ^ny crganlzatlcn has lts cwn oulture
oharaoterlzed by lmpllolt and expllolt values, behavlcral expeotatlcns,
oustcms and rltuals, and termlnclcgy. lmplementlng results
management requlres that the crganlzatlcnal oulture be transfcrmed tc
suppcrt results crlentatlcn. 0rganlzatlcns that make a suooessful
transltlcn tc results management are cften thcse that are able tc
manage thls ohallenglng transfcrmatlcn effeotlvely.
ResuIts
management
has major
impIications
for the
organization.
12
Maklng the transltlon to results management requlres a
long-term organlzatlonal commltment, wlth management
taklng on a strong leadershlp role. |t lnvolves lmportant
changes ln organlzatlonal culturechanges that must
be proactlvely managed (see 8ox 3)
7
. |t also requlres
an approprlate enabllng envlronment, ln partlcular
management and lnformatlon systems that allow results
management to blossom.
Leadership. Management's role ls to set out a
clear, easlly understood vlslon of the
organlzatlon's results. wlthout the full
support of senlor management and wlthout
a clear artlculatlon of that commltment
to stan, there ls llttle chance that the
necessary organlzatlonal changes can be
made. Management must actlvely support
and vlslbly partlclpate ln all phases of
lmplementlng results management.
DrganizationaI cuIture. Merely
artlculatlng a commltment to results
management ls not enough. Success
depends substantlally on developlng a
results-orlented organlzatlonal culture.
The publlc sector's tradltlonal emphasls
on admlnlstratlve procedures and
lnputs ls deeply lngralned. Movlng to
results management requlres nurturlng
a mlndset that focuses on actlvely
managlng lnputs and outputs to achleve
outcomes.
Supporting systems. |mplementlng
results management requlres rellable
systems to ensure collectlon, encodlng,
analysls, and reportlng of performance
data. weaknesses ln many organlzatlons
are especlally evldent ln reportlng
Prerequisites: Leadership,
CuIture, and System
6
Box 3: 0haracteristics oI a Results Management 0ulture
readlness tc thlnk and aot aorcss bcundarles
effeotlve teamwcrk
crganlzatlcnal flexlblllty
cpenness tc lnncvatlcn and oreatlvlty
ablllty tc oapltallze cn wlndcws cf cppcrtunlty, tc tclerate mlstakes
and tc manage rlsk
oapaolty tc bulld strateglo alllanoes, ocllabcratlcn, and trust and tc
negctlate tc aohleve jclnt cutocmes
adaptablllty tc ohanglng olroumstanoes
perslstenoe
enocuragement cf dlverse vlews and awareness cf and appreolatlcn
cf dlfferent oultures
oapaolty tc balanoe the tenslcn between shcrtterm and lcngterm
gcals
effeotlve kncwledge management
6
Lxperiences from a number of countries and organizations implementing results management all point to these elements as keys to success. See for example
lmlement|n kesults-8oseJ Vonoement: lessons ltom the l|tetotute. Ofce of the Auditor General of Canada. March 2000 and Perrin,
8urt "Governments That Deliver: Moving from Outputs to Outcomes Paper based upon a Poundtable Discussion l5-l6 December 2004 sponsored by |8M and the
world 8ank.
7
Prom a presentation by Lynelle 8riggs, Public Service Commissioner, Australia, May 2005.
Moving
to resuIts
management
requires
nurturing
a mindset
that focuses
on activeIy
managing
inputs and
outputs
to achieve
outcomes.
13
performance lnformatlon and uslng lt for declslon
maklng and learnlng. One of the prlmary beneflts of
results management ls the ablllty to generate real-
tlme feedback to lmprove the quallty of declslon
maklng. An lntegrated approach to knowledge
management and sharlng lnformatlon ls essentlal to
achleve thls.
Managlng for results requlres ln-depth analysls, careful
plannlng, and clear focus. Thls process can be vlsuallzed
as an ongolng cycle lnvolvlng elght phases (see gure
at rlght) that proceed ln a loglcal sequence, though
there may also be some movement back and forth and a
need to revlslt varlous phases as work proceeds. Pesults
management requlres nexlblllty, but nexlblllty wlthln the
context of a sound strateglc plannlng cycle.
Phase 1: Strategic pIanning and resource
aIIocation.The orlgln of the term strategy lles ln the
Greek word sttoteos, used to descrlbe the broad sweep
of conductlng mllltary campalgns and forelgn pollcy
among clty-states. Over the lntervenlng centurles, the
term "strategy retalned lts assoclatlon wlth the battleeld
and mllltary operatlons. 8y the late 20
th
century, however,
the term had been wldely adapted ln management
llterature, and "strateglc plannlng came lnto lts own as
a corporate tool. As part of the contlnulng evolutlon ln
publlc sector management, progresslve government
agencles and development organlzatlons are now fully
commltted to strateglc plannlng.
|nltlally, lt ls lmportant to carry out a
comprehenslve scan of the organlzatlon
to understand the lnternal (organlzatlonal)
and external envlronments as fully as
posslble. varlous acronyms have been used
to descrlbe thls analysls, lncludlng "PLST
(polltlcal, economlc, soclal, and technlcal
envlronments) and "SwOT (strength,
weaknesses, opportunltles, and threats).
7he CycIe of ResuIts Management
1he Eight Phases oI
Managing Ior Results
5eIecIion of
indicaIors
and IargeIs
5IraIigic
pIanning and
resource
aIIocaIion
AnaIyzing
performance
and resuIIs
informaIion
Using
performance
and resuIIs
informaIion
E
s
I
a
b
I
i
s
h
i
n
g
r
e
s
p
o
n
s
i
b
i
I
i
I
y
a
n
d
a
c
c
o
u
n
I
a
b
i
I
i
I
y
R
e
p
o
r
I
i
n
g
p
e
r
f
o
r
m
a
n
c
e
a
n
d
r
e
s
u
I
I
s
i
n
f
o
r
m
a
I
i
o
n
I
o
s
I
a
k
e
h
o
I
d
e
r
s
M
e
a
s
u
r
i
n
g
p
e
r
f
o
r
m
a
n
c
e
a
n
d
r
e
s
u
I
I
s
G
e
I
I
i
n
g
f
e
e
d
b
a
c
k
a
n
d
i
n
p
u
I
s
f
r
o
m
s
I
a
k
e
h
o
I
d
e
r
s
putting resu|ts management into practice
Managing
for resuIts
requires in-
depth anaIysis,
carefuI
pIanning, and
cIear focus.
14
whatever method ls employed, good strateglc analysls
addresses key questlons such as the followlng.
- where have we been, and where are we now!
- where wlll we be ln the future lf we contlnue on our
present course!
- where do we want to be ln 3 years! |n 5 years!
- How do we get from polnt A (now) to polnt 8 (the
3- or 5-year end polnt)!
- How wlll we know when we have arrlved!
The preclse form taken by strateglc plannlng wlll
vary dependlng on the organlzatlon's culture, leadershlp,
complexlty, slze, and mlsslon. Strateglc plannlng, whlch
usually refers to a 3-5 year tlmeframe, normally lmproves
an organlzatlon's capaclty to achleve results. Strateglc
plannlng for results requlres partlcular attentlon to
llnkages between strateglc ob[ectlves and the bottom-
llne budget. what nanclal resources are requlred to
lmplement the plan! How wlll the money be spent and
how wlll the expended nanclal resources contrlbute to
deslred results!
Phase 2: SeIecting indicators and targets. The rst
step ln operatlonallzlng the strategy ls to develop sound
lndlcators and targets as these are the keys to knowlng
when you are maklng measurable progress toward deslred
results. Thls process ls grounded ln the results framework
whlch provldes an overvlew and qulck summary of
cause-and-enect relatlonshlps and allows dlnerentlatlon
of lnputs, outputs, outcomes, and ultlmately lmpacts. 8y
understandlng these relatlonshlps, lt becomes posslble
to "work backwards to develop approprlate and rellable
performance lndlcators. |ndlcators measure progress on
a quantltatlve scale. Lxamples lnclude
llteracy rates, agrlcultural productlvlty/crop
ylelds, and chlld mortallty ratlos. |n each
case, the lndlcator measures progress
towards the outcome renectlng the deslred
result.
Once lndlcators have been ldentled,
basellne values need to be collected for
each lndlcator before pro[ect actlvltles
begln. A solld basellne ls essentlal for
measurlng and monltorlng of subsequent
progress to be enectlve. Havlng good
basellne data ls also essentlal for settlng
expllclt targets, l.e. partlcular values for an
lndlcator to be achleved wlthln a clearly
dened tlmeframe.
Perhaps most lmportant ls that
lndlcators are based on valld and rellable
data and that they are lntultlvely useful
to managers. |ndlcators should, to the
extent posslble, conform to the "SMAPT
paradlgm, speclc, measurable, attalnable,
reallstlc, tlme-bound. when these crlterla
are met, well-lnformed management
declslons can be made.
Phase 3: stabIishing responsibiIity
and accountabiIity. An lmportant
prerequlslte before lmplementlng
the strategy ls to reach consensus on
responslblllty and accountablllty at all
levels. The enectlve delegatlon of authorlty
Strategic
pIanning
normaIIy
improves an
organization's
capacity
to achieve
resuIts.
15
ls essentlal. |f stan are to be held accountable for the
results they achleve, they must be clearly empowered
and glven the authorlty they need to get the [ob done.
Such empowerment ls generally achleved by progresslve
human resource management that allows for nexlblllty ln
determlnlng how stan do thelr [obs, whlle slmultaneously
glvlng prlorlty to measurlng, monltorlng, and managlng
results.
Performance lmproves when the stan members who
actually do the work have authorlty and responslblllty
delegated dlrectly to them. Thls type of delegatlon goes
beyond the tradltlonal ratlonale based on enectlveness or
em clency and requlres a ma[or rethlnklng of management
systems and practlces.
Phase 4: Measuring performance and resuIts.
Lnectlvely lmplementlng results management requlres that
performance be measured at all levels of the organlzatlon.
|n general, monltorlng systems should be deslgned uslng
avallable data sources whlle avoldlng dupllcatlng other
management systems. |t ls also lmportant at the outset to
determlne the frequency of monltorlng.
Phase 5: AnaIyzing performance and resuIts
information. Analyzlng performance and results data ls
essentlal for enectlvely monltorlng and managlng programs
and pro[ects. Measurlng and monltorlng data lnvolves
an lteratlve process of assessment, comparlson, and
lnterpretatlon. After the data are analyzed, results must be
lnterpreted wlth speclc reference to whether deslred results
are belng achleved.
Phase 6: Using performance and resuIts information.
|nformatlon on performance and results serves many
purposes, lncludlng management declslon
maklng, lmprovlng buslness processes,
documentlng progress toward results, and
reportlng on organlzatlonal enectlveness to
stakeholders.
Phase 7: Reporting performance and
resuIts information to stakehoIders. |t ls
lmportant to speclfy who wlll use results
lnformatlon and for what
purposes. Other
lmportant lssues
lnclude determlnlng
when exactly the
lnformatlon wlll be requlred
and what declslon-maklng
processes need to be supported.
Phase 8: Cetting feedback
and inputs from stakehoIders.
Dlalogue wlth and feedback
from stakeholders are
essentlal to understand the
relevance and usefulness
of performance
lnformatlon, feedback
mechanlsms, and
reports. Thls then
forms the basls for the
next round of plannlng
and lmplementatlon.
putting resu|ts management into practice
SMAR7 :
specic,
measurabIe,
attainabIe,
reaIistic, time-
bound.
16
17
capacity Ior resu|ts management |m,|ma||a |:a||: |aaama|, ||a||a: aa1 ,,a||aa|||:
T
he rst three chapters have presented an overvlew
of results management maklng every enort to
slmpllfy complex concepts and communlcate key
polnts clearly. However, the presentatlon has necessarlly
been somewhat theoretlcal glven the complex concepts
lnvolved ln results management. The challenge for
practltloners ls to translate these theoretlcal concepts lnto
enectlve management tools. To support thls enort, thls
chapter examlnes some of the challenges to lmplementlng
results management and some key success factors that
can help overcome those challenges. (The two appendlxes
provlde more concrete detall on results management at
the pro[ect and country levels respectlvely).
DrganizationaI cuIture. Maklng the transltlon to results
management requlres more than slmply adoptlng new
systems or processes. Pesults management requlres the
organlzatlon to create and sustaln an organlzatlonal
culture focused on results. Thls can be challenglng ln
organlzatlons that have tradltlonally emphaslzed lnputs
and processes rather than outputs and outcomes.
Resistance to change. The dlmcult but absolutely
necessary transltlon from managlng for outputs to
managlng for outcomes (results) ls llkely to encounter
reslstance. Many deslred development results are llkely
to be lncremental and dlmcult to measure. As a result,
managers and stan may tend to shlft thelr workloads to
tasks that are easler to measure or achleve rather than
staylng focused on what ls lmportant from a development
perspectlve.
ChaIIenges to ective ResuIts Management
Making the
transition
to resuIts
management
requires more
than simpIy
adopting new
systems or
processes.
7endency to make things
compIicated. One common mlstake
ls to deslgn overly compllcated results
frameworks wlth large numbers of
lndlcators and targets. Lven lf these are
clearly dlnerentlated from one another,
the prollferatlon of lndlcators makes
monltorlng dlmcult and unfocused and
the practlcal use of the lnformatlon more
dlmcult.
Inadequate sta incentives. |n most
tradltlonal publlc sector organlzatlons,
stan lncentlves revolve around
lmplementlng buslness processes and
ensurlng that the organlzatlon transforms
certaln lnputs lnto deslred outputs. |n
lnternatlonal nanclal lnstltutlons, stan
lncentlves are tradltlonally orlented
around processlng pro[ects and ensurlng
that country "plpellnes are full. However,
these lncentlves are not llkely to motlvate
stan to make the transltlon to results
management, a transltlon that requlres a
fundamentally dlnerent way of thlnklng.
Insumcient training and
organizationaI support. |n many
cases, organlzatlons develop elaborate
results management systems wlthout
paylng sumclent attentlon to the human
dlmenslon. The concepts of results
management are often new to stan,
18
they represent an altogether unfamlllar way of dolng
buslness. |f they are not fully supported wlth sustalnable
capaclty development programs and reference materlals,
lmplementatlon wlll be [eopardlzed.
Strong, focused Ieadership. Senlor management
must take the lead ln clearly communlcatlng the
maln purpose and functlon of the organlzatlon. Thls
deflnes the results the organlzatlon alms to achleve
and should focus all stakeholders' attentlon on the task
at hand. Strong leadershlp ls essentlal for maklng the
ma[or changes ln values, attltudes, and organlzatlonal
behavlor requlred to create a culture focused on
achlevlng development results.
Customizing to the specific context. Lven though
the core elements of any applled results management
approach are baslcally the same ln any organlzatlon,
program, or pro[ect, the speclflc blend of elements
needs to be customlzed. Por lnstance, lmplementatlon
of results management ln Asla must take lnto account
Aslan values and Aslan ways of communlcatlng. Slmply
repllcatlng what works ln one context ln another (often
qulte dlfferent) context ls unllkely to be
successful. At the same tlme,
however, learnlng from
the experlences and
best practlces of
other organlzatlons ls
often qulte valuable.
keeping things
Five key Succes Factors
simpIe. |t ls lmportant not to try to do
too much at one tlme or to develop
overly compllcated and comprehenslve
systems ln the short term. Pesults
management requlres the formulatlon
of reallstlc expectatlons and the use
of credlble lnformatlon. |t ls lmportant
to start small and llmlt the number of
deslred outcomes and lndlcators. Only
then can you begln to bulld practlcal
systems that support organlzatlonal
lmprovement and a conslstent results
focus. |f results management ls to be
sustalnable, early enorts must be percelved
as useful and as havlng organlzatlonal
legltlmacy. Thls suggests that a gradual
and systematlc approach lnvolvlng phased
lmplementatlon ls essentlal ln most
organlzatlons.
uiIding ownership through
participation. |mplementlng results
management ls best done uslng a blend
of top-down and bottom-up approaches.
whlle lt ls certalnly lmportant to determlne
the lnformatlon parameters of systems
to support strateglc management of the
organlzatlon, lt ls also essentlal to take
lnto account the preferences and needs
of stan, partners, and other stakeholders.
Partlclpatory processes should be
an lntegral part of deslgnlng results
Strong
Ieadership is
essentiaI.
19
capacity Ior resu|ts management imp|ementing resu|ts management; cha||enges and opportunities
SimpIy
repIicating
what works in
one context
in another
context is
unIikeIy to be
successfuI.
management approaches, both ln order to ldentlfy baslc
constralnts and to ensure that the volces of those who wlll
use the systems are heard. Deslgnlng a system from the
top down and lmposlng lt on the organlzatlon ls much less
enectlve.
Making conscious organizationaI changes.
Organlzatlons constantly change. As the phllosopher
Herlclltes polnted out 2000 years ago, you can never
dlp your toe lnto the same rlver twlce slnce the water
ls always nowlng. Organlzatlons exlst ln a slmllar state
of nux. Concentrated enorts are requlred to remaln
relevant and to contlnue achlevlng results ln a constantly
changlng envlronment. Pesults management, when
properly lmplemented, represents a vlable and powerful
strategy for enectlvely meetlng thls challenge. Most
organlzatlons underestlmate the scope and lmpact
of the organlzatlonal changes that accompany results
management. Pesults management wlll not work ln an
organlzatlonal culture wedded to strlct hlerarchles, tlght
management control, and rlgld compllance wlth rules and
procedures. Organlzatlonal change anects every aspect
of operatlons, lncludlng strateglc plannlng, resource
allocatlon and management, assessment and lncentlve
systems, monltorlng, and reportlng. Thls suggests that
organlzatlons should be ready to launch a well-planned
and adequately nanced process of change management.
20
|a|||a|: aa1 |:aa|:: aa |a||aa||aaa| |\,||a: w||| |:a||: |aaama|
There ls a vast body of documentatlon and materlals on the experlence of natlonal governments and
lnternatlonal agencles. A startlng polnt for further famlllarlzatlon wlth lnternatlonal experlence may
lnclude the followlng resources.
- Aslan Development 8ank. Pesults Management Unlt. Avallable: http://www.adb.org/ mfdr/default.asp
- Aslan Development 8ank |nstltute. 2005. Development Management for Senlor Lxecutlves. Tokyo, 1apan.
4-8 Aprll 2005. Avallable: http://www.adbl.org/event/ 282.development.management.workshop/
- Comotot|ve lol|cy lvoluot|on 5et|es.Transactlon Publlshers. Avallable:http://www.transactlonpub.
com/cgl-bln/transactlonpubllshers.storefront/ 439e57f40039f3l69c4ec0a80a7306eb/Cartrldge/
ssl257027b/AdvSearch/Pun/ MASK989
- 1olnt Multllateral Development 8anks. Managlng for Development Pesults. Avallable:
http://www.mfdr.org/
- 1olnt Multllateral Development 8anks. 2005.Vono|n lot 0eveloment kesults lt|nc|les |n Act|on:
5outceoool on lmet|n CooJ ltoct|ce. Avallable: http://www.mfdr.org/sourcebook.html
- Kusek, 1.Z and P.C. Plst. 2004. 7en 5tes to o kesults-ooseJ Von|tot|n onJ lvoluot|on 5ystem. world
8ank. Avallable: http://www.worldbanklnfoshop.org/ecommerce/catalog/product!ltem_ld3688663
- New Zealand State Servlces Commlsslon. Managlng for Outcomes / Pesults. Avallable: http://www.ssc.
govt.nz/dlsplay/document.asp!Nav|D208
- Omce of Management and 8udget. l993. u5 Covetnment letlotmonce onJ kesults Act. Avallable: http://
www.whltehouse.gov/OM8/mgmt-gpra/gplaw2m.html
- Organlsatlon for Lconomlc Co-operatlon. 2004. Covetn|n lot letlotmonce. Avallable: http://www.oecd.
org/dataoecd/52/44/3387334l.pdf
- Organlsatlon for Lconomlc Co-operatlon and Development/Development Asslstance Commlttee.
2002. Clossoty ol ley 7etms |n lvoluot|on onJ kesults 8oseJ Vonoement. Avallable: http://www.oecd.
org/dataoecd/29/2l/2754804.pdf
- Podrlguez-Garcla, P. and L.M. whlte. 2005. 5ell-Assessment |n Vono|n lot kesults: ConJuct|n 5ell-
Assessment lot 0eveloment ltoct|t|onets. world 8ank. world 8ank worklng Paper No. 4l. Avallable:
http://publlcatlons.worldbank.org/ecommerce/catalog/product!ltem_ld46003l2
21
Development results are achleved at the country level
and must be measured, monltored, and managed at
the country level. Achlevlng country development
outcomes helps lmprove the quallty of llfe of poor people.
Pesults management ln thls context requlres a clear
understandlng of exactly what development results are
deslred and how those results wlll be assessed. Among
the key elements of enectlve results management at the
country level are the followlng:
- enhanced country dlagnostlcs, especlally wlth
regard to poverty assessment,
- allgnment wlth and use of country systems,
- harmonlzatlon among development agencles/
donors,
- development of selectlve and focused programs,
- careful attentlon to tracklng and actlvely
managlng a partlcular agency's contrlbutlon to key
development outcomes.
Pesults management at the country level should be
understood ln terms of the complex nature of natlonal
development outcomes. |t ls essentlal to
recognlze that the asslstance provlded
by any partlcular development agency ls
hlghly unllkely to lead dlrectly to country-
level development results, lnstead, they
are the aggregate lmpact of lnvestments
and lnputs from many sourcesthe
developlng country's government, the
prlvate sector, and multllateral and
bllateral development agencles. The key
for any partlcular agency ls to understand
the lmpact of lts own lnputs/lnvestments
and the contrlbutlons they are maklng to
the deslred development results.
8
|n order to lllustrate how results
management can be lmplemented at the
country level, thls appendlx descrlbes
how the Aslan Development 8ank (AD8)
deslgns and lmplements lts results-based
country strategles and programs (P8-CSPs).
9

8
|n most developing countries, the inputs provided by a development nance institutions such as the Asian Development 8ank represent only a tiny fraction of total
investment in the country.
9
AD8 has taken a number of signicant steps for implementing country leadership and ownership policies. The Pesident Mission Policy recognizes the importance
of local knowledge and capacities and calls for stronger client and partnership orientation. New business processes emphasize the primacy of the country strategy and
program (CSP) in guiding AD8 operations. The recent practice note on results-based CSPs focuses on the CSP outcomes that are expected to be achieved during the
CSP period and the need to develop mechanisms and indicators for monitoring progress toward achievement of those outcomes. A results-based CSP is developed
and implemented based on detailed discussions with the government and other development partners. Compared with the traditional methodology, the results-
based CSP further emphasizes (i) alignment with the country-owned development strategy, (ii) a realistic and selective development approach rather than an ideal and
comprehensive approach, (iii) achievement of development impact on the ground rather than preparation of the strategy document itself, (iv) outcome monitoring
rather than input control, and (v) coordinated assistance among development partners rather than an isolated individual intervention.
|,,a1|\ I. |:a||: |aaama| a| || |aaa|| |.|
appendix 1. resu|ts management at the country |eve|
22
The prlnclples presented now naturally out of the early
dlscusslon on results frameworks and monltorlng and
evaluatlon systems.
|deally, governments wlll take the lead ln craftlng thelr
own natlonal development strategles. There are a growlng
number of poverty reductlon strategy papers (PPSPs) ln
the reglon, for example, the Natlonal Poverty Peductlon
Strategy of Cambodla, the Poverty Peductlon Strategy
Paper of Nepal, the Poverty Peductlon Strategy Paper of
Paklstan, and the Comprehenslve Poverty Peductlon and
Growth Strategy of vlet Nam. |n each case, governments
and thelr development partners are refocuslng thelr enorts
on results management, lncludlng developlng sector and
thematlc road maps, pro[ect-level results frameworks, and
capaclty-development results frameworks.
AD8's P8-CSPs are grounded ln country-owned
prlorltles and rely on extenslve stakeholder consultatlons.
These prlnclples were evldent ln developlng the rst
P8-CSP ln Nepal, a process that lnvolved extenslve
consultatlons to ldentlfy expected results and
comprehenslve analysls of how to achleve those results.
|n 8angladesh, AD8 developed an P8-CSP based on
unprecedented stakeholder consultatlons and donor
coordlnatlon (among AD8, 1apan, Unlted Klngdom,
and the world 8ank). Slmllarly, the development of vlet
Nam's P8-CSP ls taklng place wlthln the context of close
allgnment among ve banks (world 8ank, 1apan 8ank
for |nternatlonal Cooperatlon, AD8, Agence Pranals de
Developpement, and Kfw 8ankengruppe).
Country Dwnership and Leadership
P8-CSPs must be allgned wlth the
development ob[ectlves dened by the
developlng member country (DMC)
government ln lts natlonal poverty
reductlon strategy (NPPS). |n many
DMCs, these take the form of PPSPs, ln
countrles that do not have a PPSP, those
development ob[ectlves are usually stated
ln a natlonal development plan. |n thls
context, the P8-CSP must clearly show how
AD8's asslstance wlll enectlvely contrlbute
to achlevlng the country's development
and poverty reductlon goals as well as the
Mlllennlum Development Goals (MDGs).
Dlnerent strategles are requlred to
achleve allgnment ln dlnerent DMCs
dependlng on such factors as the quallty
of development plannlng and clarlty
of the NPPS. |f natlonal development
prlorltles are already clearly artlculated,
the P8-CSP process can concentrate on
such lssues as how to leverage AD8's
comparatlve advantages, how best to
support government prlorltles, and how to
ensure harmonlzatlon wlth the programs of
development partners.
when the government's development
strategles are not sumclently prlorltlzed,
the P8-CSP process may need to begln by
engaglng the government and stakeholders
AIignment ResuIts
management
in this context
requires
a cIear
understanding
of exactIy what
deveIopment
resuIts are
desired.
23
ln dlalogue about the tradeons lnvolved ln prlorltlzlng
certaln ob[ectlves over others. The results of macroeconomlc
and poverty assessments need to be carefully studled and,
as necessary, clearly communlcated to stakeholder groups.
|n other words, consensus must be bullt regardlng the
most enectlve uses of AD8 lnvestments to achleve agreed
development ob[ectlves.
AD8 ls fully commltted to harmonlzatlon, one of the key
prlnclples of the Parls Declaratlon. AD8 collaborates closely
wlth other development partners ln the development
of lts P8-CSPs. Lxamples lnclude regular consultatlons
wlth the world 8ank, the |nternatlonal Monetary Pund,
the Unlted Natlons Development Programme, and the
Luropean Unlon. |n certaln sectors, AD8 works wlth
speclallzed agencles of the Unlted Natlons and wlth
bllateral development agencles. AD8 often takes on a
leadlng role ln donor coordlnatlon ln DMCs where lt has a
comparatlve advantage and/or when requested to do so
by the government.
The process of collaboratlng on country programmlng
also helps scale up government capaclty. The rst step
ls often a [olnt strateglc plannlng retreat, wlth the
government taklng the lead and ma[or development
partners partlclpatlng. Development partners work
together to reach consensus on deslred development
results, responslbllltles for dlagnostlc work, and
the respectlve outputs to be produced by varlous
development partners.
A key step ls to develop a [olnt results framework
supported by the government and agreed
to by stakeholders and development
partners. Developlng the framework
requlres comprehenslve strateglc analysls,
some of the tools often used are strengths,
weaknesses, opportunltles and threats
(SwOT), problem trees, mlnd maps, and
logframes. Once the framework ls ln
place, each development agency can
allgn lts strategy and program wlth lt ln a
manner renectlng respectlve comparatlve
advantages and resource avallablllty.
AD8 ls also developlng and
lmplementlng lts measurement and
monltorlng systems ln close collaboratlon
wlth strateglc partners. |n sectors and
thematlc areas where donors and other
development partners have common
lnterests, sector and thematlc results are
monltored and evaluated [olntly whenever
posslble. Thls commltment to harmonlzatlon
helps lower transactlon costs for DMCs and
facllltates comparatlve analysls.
|n general, the P8-CSP does the followlng:
- clearly ldentles deslred
development results, lntermedlate
Harmonization
AD's R-CSPs
are grounded
in country-
owned
priorities
and reIy on
extensive
stakehoIder
consuItations.
7he Asian DeveIopment ank's
ResuIts ased-Country Strategy
and Program
24
outcomes, and outputs to be produced,
- descrlbes a credlble plan for achlevlng those
outputs and outcomes,
- speclfles tlme-bound lndlcators and targets.
The P8-CSP deflnes the expected changes ln the
llves of beneflclarles (especlally the poor), lncludlng
measurable lndlcators and llnks between the actlvltles/
pro[ects descrlbed ln the CSP and deslred results. The
P8-CSP acknowledges the development constralnts
under whlch AD8 must operate and speclfles the
country-level outcomes that AD8's asslstance wlll help
to achleve durlng the CSP perlod.
ResuIts framework. At the core of the P8-
CSP ls a results framework laylng out the loglcal
relatlonshlps between AD8's lnterventlons and the
DMC's development goals. As descrlbed ln chapters l
and 2, the framework ls a crltlcally lmportant plannlng
and management tool that clearly ldentlfles llnks
between strateglc development goals, the outcomes
that are dlrectly lnfluenced by AD8's CSP, and the key
results requlred for those outcomes to be attalned.
Developlng the framework ls ln ltself an lmportant
learnlng and capaclty development lnterventlon as lt
forces partlclpants to crltlcally examlne the strategy,
partlcularly wlth regard to selectlvlty and focus. A
sound results framework lmproves the deslgn of the
CSP and the quallty of management declslons and
leads to better results.
Monitoring and evaIuation. |t ls essentlal that
a rellable monltorlng and evaluatlon system be
embedded ln the results framework, wlth clearly
speclfled lndlcators and reportlng
mechanlsms. wherever posslble,
lndlcators from government systems
are used, although ln all cases the
lndlcators selected should be conslstent
wlth those used by the government. |n
developlng approprlate lndlcators, AD8
consults closely wlth the government
(especlally the executlng agency
but often wlth other agencles as
well) and development partners to
develop a short llst of key lndlcators.
These are often derlved from NPPS
monltorlng lndlcators, the |nternatlonal
Development Assoclatlon's l4 country-
level lndlcators and the MDG lndlcators,
but also take lnto account other
lndlcators to assess the achlevement of
results.
Monltorlng and evaluatlon systems
should also be harmonlzed wlth those
of other donors. |n thls context, AD8 and
lts development partners work closely
wlth the government to determlne
rellable basellnes, to assess overall
data quallty, and to develop ob[ectlve
assessments of the government's
capaclty. |t ls also essentlal that donor
monltorlng and evaluatlon requlrements
are harmonlzed ln order to lower the
burden on country capaclty.
A key step is
to deveIop a
joint resuIts
framework.
25
Capacity deveIopment.
l0
One of the ma[or
challenges faced by development agencles ls that
desplte lnternatlonal commltments, actually uslng
country systems ls often constralned by lack of government
capaclty. Capaclty ls generally understood as the ablllty of
people, organlzatlons and soclety as a whole to manage thelr
analrs successfully. Capaclty development can be dened
as "the process whereby people, organlzatlons, and soclety
as a whole unleash, strengthen, create, adapt, and malntaln
capaclty over tlme.
ll
Capaclty development ls crltlcal not
only to the publlc sector but also to the prlvate sector and
to non government /clvll soclety organlzatlons. 8ased on an
understandlng that organlzatlonal enectlveness ls anected by
external lnnuences and relatlonshlps, approaches to capaclty
development need to be multl-dlmenslonal and lnclude (l)
lnstltutlonal development, (ll) organlzatlonal development,
and (lll) cllent relatlons, network, and partnershlp
development.
Capaclty development ls a prerequlslte for movlng
toward true country ownershlp of partner-funded
development pro[ects. The needs are many and range
from helplng governments to develop modern and
rellable lnformatlon systems to strengthenlng nanclal
management systems at the provlnclal and dlstrlct levels
to bulldlng technlcal capacltles at all levels of government.
Any capaclty development enort should bulld on a
systematlc assessment of the exlstlng
capaclty. Dlnerent guldes and tools have
been developed to provlde asslstance for
dolng thls.
l2
Capacity deveIopment and
knowIedge sharing. Achlevlng
development enectlveness requlres
sustalnable country capacltles ln such
areas as strateglc plannlng, publlc nanclal
management, monltorlng and evaluatlon,
and statlstlcal reportlng. Conslstent wlth
the ldentlcatlon of capaclty development
as a new thematlc prlorlty ln lts enhanced
Poverty Peductlon Strategy, AD8 provldes
technlcal asslstance to strengthen the
results orlentatlon of publlc sector
management and to develop statlstlcal
capaclty at the country level. AD8 works
closely wlth the world 8ank to lmprove
statlstlcal capaclty under the umbrella of
the Marrakech Actlon Plan for Statlstlcs
(MAPS). Knowledge sharlng at the reglonal
level ls supported through the Communlty
of Practlce ln Managlng for Development
Pesults ln the Asla and Paclc Peglon.
l3

Also supportlng capaclty development
l0
Pefer to AD8.2006. lntetot|n Cooc|ty 0eveloment |nto Countty Ptotoms onJ Oetot|ons. PtooseJ VeJ|um-7etm ltomewotl onJ Act|on Plon 2006-2010, to be
published.
ll
OLCD-Development Assistance Committee (DAC). 2005. k|s|n to the Chollene ol Cooc|ty 0eveloment: lessons leotnt onJ Vov|n lotwotJ. 0tolt CooJ Ptoct|ce
Poet on Cooc|ty 0eveloment. Draft version ll for the DAC Governance Network.
l2
Pefer to for instance AD8.2006 Cooc|ty lot kesults Vonoement. A Cu|Je lot ConJuct|n o ko|J Assessment ol the Cooc|ty ol 0evelo|n Vemcet Countt|es to
Vonoe lot kesults.
l3
The community is a virtual learning network that provides an interactive forum for dialogue about Managing for Development Pesults among DMCs and
between AD8 and its DMCs.
Capacity
deveIopment
can be dened
as "the process
whereby
peopIe,
organizations,
and society
as a whoIe
unIeash,
strengthen,
create, adapt,
and maintain
capacity over
time."
26
ls the Managlng for Development Pesults Cooperatlon
Pund that supports pllot DMC lnltlatlves promotlng
results-based approaches and technlques ln publlc sector
management.
|mplementlng results-orlented CSPs requlres ma[or
changes ln knowledge, attltudes, practlces, organlzatlonal
culture, tools, technlques, and lncentlves. Thls process
takes tlme and can only succeed when supported by
steady lmprovements ln lnstltutlonal capacltles, pollcles,
and procedures. Pollow-up measures wlll be requlred
to bulld thls capaclty and to ensure that pollcles and
procedures encourage good P8-CSP practlces.
27
7he design and monitoring framework. Pundamentally,
managlng for results beglns at the pro[ect level. Achlevlng
results at thls level requlres a systematlc approach to
deslgn, lmplementatlon, and evaluatlon. The most
common approach ls to use a deslgn and monltorlng
framework (loglcal framework) to structure pro[ect
plannlng. That framework should communlcate essentlal
lnformatlon about the pro[ect to stakeholders ln an
emclent, easy-to-read format. More speclcally, the
framework should make the followlng lmmedlately clear:
- how the pro[ect wlll achleve results by convertlng
lnputs lnto a dened set of outputs that are expected
to achleve a deslred development result or outcome,
- whlch tlme-bound and quantlable lndlcators and
targets wlll be used to monltor and evaluate the
pro[ect,
- what rlsks may adversely anect achlevlng results,
and what approprlate measures are there to mltlgate
those rlsks,
- the speclc assumptlons that must remaln valld lf the
pro[ect ls to succeed.
Thls appendlx presents a general pro[ect-plannlng
framework based on the Aslan Development 8ank's
(AD8) deslgn and monltorlng framework,
l4
however, the
prlnclples are generally appllcable to pro[ect deslgn and
management ln any organlzatlonal settlng.
|,,a1|\ Z. |:a||: |aaama| a| || ||aj:| |.|
7empIate: 7he design and
monitoring framework (DMF). As shown
ln Plgure A2.l, the DMP ls a l4-box matrlx
that answers a number of key questlons.
- why do we want to do thls pro[ect
ln the rst place (impact)!
- what ls the pro[ect golng to
accompllsh (outcome)!
- what ls the scope of the pro[ect
(outputs) and what key actlvltles
need to be carrled out (activities)!
- what resources (inputs) are
requlred!
- what are the potentlal problems
(risks) that may anect the success
of the pro[ect!
- what are the fundamental
assumptlons that the pro[ect
deslgn ls based on!
- How do we measure
(performance indicators) and
verlfy (data sources) that have
been successful!
l4
AD8.2006. Cu|Jel|nes lot Pteot|n o 0es|n onJ Von|tot|n ltomewotl, Von|lo.
appendix 2. resu|ts management at the project |eve|
Managing for
resuIts begins
at the project
IeveI.
28
key roIe of participation. The partlclpatlon of
stakeholders ls essentlal from the earllest phases of
pro[ect deslgn. Groups generally make better declslons
than lndlvlduals, and broad partlclpatlon allows dlverse
perspectlves to be taken lnto account. At the same
tlme, the act of partlclpatlng, contrlbutlng, and seelng
lnputs translated lnto elements of pro[ect deslgn bullds
commltment to and ownershlp of the pro[ect. Partlclpatory
processes ln pro[ect plannlng are part of, both the
situation anaIysis and project identication phases.
Pro[ects are generally lntended to address a speclc
development problem, often related to
allevlatlng constralnts ln access to publlc
servlces. Larly on, lt ls essentlal to reach
a consensus that the current sltuatlon ls
unsatlsfactory and that changes need to be
made. After that general consensus wlth
stakeholders ls reached, a full sltuatlon
analysls needs to be conducted. The two
maln components of thls are stakehoIder
anaIysis and probIem anaIysis.
StakehoIder anaIysis. Key stakeholders
should be carefully analyzed uslng a format
llke that ln Plgure A2.2. |nltlally, lt ls essentlal
Figure A2.1: 0esign and Monitoring Framework Approach
287&20(
,03$&7
Des|gn 5ummary
Perfcrmance
Targets/Inu|catcrs
Assumt|ens/R|sk
Data 5curces
Repcrt|ng
Mechan|sm
es|gn
A|ternat|ve
Ana|ys|s
0bject|ve
Ana|ys|s
0esign and Monitoring Framework Reference Vers|en
2873876
,13876
Preb|em
Ana|ys|s
5takehe|der
Ana|ys|s
$&7,9,7,(6
Situation AnaIysis
7he
participation
of
stakehoIders is
essentiaI from
the earIiest
phases of
project design.
29
to clarlfy whlch people and organlzatlons are lnvolved ln
and/or anected by the development problem. whlch groups
are supportlve and whlch groups are opposed! Pegardless
of whether a group supports the pro[ect or not, lt should be
lnvolved ln ldentlfylng and understandlng the development
problem. |n most cases, thls partlclpatlon takes place ln a
workshop settlng wlth the dlalogue facllltated by a consultant,
a member of the pro[ect team, or one of the partlclpants (see
8ox A2.l).
ProbIem anaIysis. After conductlng
the stakeholder analysls, the focus shlfts
to a comprehenslve analysls of the
development problem. The prlmary tool ls
the problem tree (see 8ox A2.2) that does
the followlng.
- analyzes the context and sltuatlon
of the problem,
- ldentles varlous problems
assoclated wlth the developed
problem,
- provldes a vlsual dlagram of
cause-and-enect relatlonshlps
(see Plgure A2.3).
Figure A2.2: Stakeholder Analysis
*URXS
6WDNHKROGHUV
LQWHUHVW
3HUFHSWLRQ
RI SUREOHP
5HVRXUFHV 0DQGDWH
Box A2.1: 1ips Ior EIIective Stakeholder Analysis
Use a serles cf fcous grcup meetlngs and faollltated wcrkshcps tc
deepen understandlng cf the develcpment prcblem and mcre olearly
ldentlfy the way fcrward.
Deflne grcup oategcrles flexlbly. The deflnltlcn may be narrcw cr
brcad, dependlng cn the sltuatlcn.
Lnsure that ycu have all fundamental lnfcrmatlcn cn key
stakehclders.
Ccnduot an lndepth analysls cf key stakehclders.
Update stakehclder analysls durlng prcjeot lmplementatlcn.
30
|n most cases, there ls already an lnltlal/general
understandlng of the nature of the problem, whether
from sector or thematlc assessments, monltorlng of
development outcomes, or ldentlcatlon of speclc
performance problems. Nevertheless, the problem tree
analysls adds slgnlcant value ln that lts partlclpatory
development bullds on the lnltlal dlagnosls
and clarles the true nature of the
problem.
Figure A2.3: 0ause and EIIect Relationships
Lffeots
Causes
Develcpment lrcblem
7he probIem
tree anaIysis
adds
signicant
vaIue.
31
Another useful tool for bralnstormlng ls the mlnd map.
8egln your mlnd map by wrltlng down a central ldea.
Then thlnk freelynon-llnearyand wrlte down new
and related ldeas radlatlng out from the center of the
map. Pocus on key ldeas, then seek out the branches and
connectlons between ldeas. The mlnd map helps you
"tease out hldden connectlons and ldentlfy prevlously
unknown cause-and-enect relatlonshlps (see Plgure A2.4).
Summary of probIem anaIysis. The
problem tree represents an evolvlng
stakeholder consensus and ls llkely to
be revlsed and rened even durlng
pro[ect lmplementatlon. |t ls lmportant to
remember the followlng.
- Problem statements may need
verlcatlon (l.e. do the problem
statements stlll renect what ls
actually happenlng now).
- Cause-enect llnks may need
ongolng verlcatlon.
- A second or thlrd development
problem may need to be fully
analyzed before a comprehenslve
plcture emerges.
- Other stakeholders may need to
be consulted as new lssues are
uncovered durlng the analysls.
Box A2.2: 1he Seven Steps in the Problem 1ree Analysis
5te 1: Dlsouss the sltuatlcn and underlylng prcblems and ldentlfy
the develcpment prcblem wlth stakehclders. Clearly state the
develcpment prcblem as a negatlve sltuatlcn and pln lt ln the oenter
cf the bcard.
5te 2: wrlte the prcblems that are the direct causes cf the
develcpment prcblem cn oards and plaoe them ln a hcrlzcntal llne
under the develcpment prcblem.
5te 3: Repeat step 2 by determlnlng the direct causes fcr eaoh cf
these prcblems and plaolng them cn oards ln a hcrlzcntal llne under
eaoh prcblem oard. Brcaden the prcblem tree as ycu wcrk
dcwnwards untll ycu reaoh very speolflo rcct causes.
5te 4: ldentlfy the direct effects cf the develcpment prcblem. wrlte
them cn oards and plaoe them ln a hcrlzcntal llne abcve the ocre
prcblem.
5te 6: Ccntlnue tc wcrk upward by plaolng the peroelved effeots cf
the level belcw cn a hcrlzcntal llne abcve.
5te 6: Revlew the prcblem tree and analyze the lnterrelatlcnshlp cf
prcblems at dlfferent levels. Mcve the oards arcund tc refleot the
evclvlng ocnsensus.
5te ?: Draw llnes wlth arrcws pclntlng frcm eaoh prcblem that ls a
oause tc the prcblem that represents an effeot.
ProbIem trees
are not static.
7hey need
to be revised
and rened
as additionaI
information is
avaiIabIe.
32
C8 ocmmltments fcr maklng mcre
mcney avallable, nct met
Rules allcw fcr cnly scverelgn lendlng
Nc prcvlslcn fcr ocsteffeotlve
small lcans
lrcoesses tcc ocmplex fcr small
bcrrcwers
Nct prcvldlng flnanolal kncwledge tc
cther stakehclders
lrcjeot fallures deny fundlng tc
gccd prcjeots
Laok cf a seotcrwlde occperatlve
apprcaoh
Ccvt unoapltallzes lts cwned
prcvlders
0ther prlcrltles squeeze water
lnvestment cut
Ccvt ocntlnues tc cwn all prcvlders
Ccvt glves prlcrlty tc urban water
needs
Nc seotcrwlde flnanolng plan
Nct prepared tc aooept fcrelgn
exohange rlsks
Laok kncwledge cf gccd praotloes
Nct enocuraglng deoentrallzed
demandled water lnvestments
Ccmmunltles laok flnanolal expertlse
Refuse tc pay fcr pccr servloes
NC0s laok ocndltlcns tc make them
gccd bcrrcwers
Hlgh ocnneotlcn oharges bar them frcm
partlolpatlng
Laok kncwledge cf gccd praotloes
Lack oI Finance Ior
Water Services
26/02/2004 v3
lnadequate dcncr funds lrcvlders under flnanoed
Ccmmunlty funds
nct mcblllzed
Ccvernment has
llmlted rescuroes
Tarlffs are unocmmerolal
Ccvt unoapltallzed lts prcvlders
Nc aooess tc a dcmestlo flnanoe
market
Can cnly get flnanoe cn unaffcrdable
terms
Laok cf flnanolal plannlng skllls
Cannct aooess dcncr funds dlreotly
Nc lloenses tc underpln bcrrcwlng
lnefflolenoles abscrb avallable funds
Figure A2.4: Mind Map
7he mind
map heIps
you "tease
out" hidden
connections
and identify
previousIy
unknown
cause-
and-effect
reIationships.
33
Figure A2.6: 1he 0bjective 1ree
Lnd
Means
Develcpment 0bejeotlve
After you have a clear understandlng of the development problem
and the underlylng causes, you need to speclfy the deslred future
sltuatlon. Thls may be referred to as the pro[ect ldentlflcatlon phase
and lnvolves anaIyzing objectives and aIternatives.
AnaIyzing objectives. The problems ldentlfled ln the
problem tree must now be transformed lnto
ob[ectlves, l.e., future solutlons of the problems.
The analysls of ob[ectlves descrlbes the deslred
sltuatlon after the problems have been resolved,
the key analytlc tool ls the ob[ectlve tree (see
Plgure A2.5 and 8ox A2.3).
Project Identication
34
AnaIyzing aIternatives. Thls analysls (see 8ox A2.4) ls
used to do the followlng:
- ldentlfy alternatlve means of achlevlng the
development ob[ectlve,
- assess the feaslblllty of each alternatlve,
- reach consensus on the pro[ect strategy.
The deslgn and monltorlng framework (DMP) ls a slmple
but powerful deslgn and management tool. |t helps bulld
consensus wlth stakeholders and creates
ownershlp of the proposed pro[ect. |t
organlzes thlnklng and relates actlvltles to
expected results. |t provldes a structure for
monltorlng and evaluatlon where planned
and actual results can be compared.
The DMP matrlx, slmllar to the loglcal
frameworks employed by multllateral and
bllateral ald agencles, ls made up of l4
frames wlth 4 ma[or headlngs/columns.
The design summary outllnes the maln
elements of the pro[ect and shows the
verticaI Iogic of the DMPthe means-
ends relatlonshlp or the results chaln. The
vertlcal loglc tests the soundness of the
results chaln by checklng lf the lnputs are
sumclent to carry out the actlvltles that wlll
produce the outputs. |n turn, outputs are
expected to achleve the deslred outcome
at the completlon of the pro[ect. Thls wlll
contrlbute towards achlevlng deslred
lmpact. The results chaln ls derlved from
the ob[ectlve tree and the analysls of
alternatlves (see Plgure A2.6).
Box A2.3: Analyzing 0bjectives
5te 1: Refcrmulate the develcpment prcblem at the hlghest level cf
the prcblem tree lntc a deslred ocndltlcn, l.e., lntc an cbjeotlve.
0bjeotlves shculd be reallstlo and aohlevable.
5te 2: wrlte the pctentlally dlreot means fcr aohlevlng the
develcpment cbjeotlve as statements cn oards and plaoe them ln a
hcrlzcntal llne under the ocre cbjeotlve.
5te 3: Revlse the statements as requlred and add new statements
as relevant and neoessary tc aohleve the stated cbjeotlve.
5te 4: Repeat step 2 by determlnlng the means fcr aohlevlng eaoh
cf the cbjeotlves and plaoe them cn oards ln a hcrlzcntal llne under
eaoh statement oard. Ycu may have mcre cbjeotlves than ycu have
prcblems ln the prcblem tree.
5te 6: The spaoe abcve the develcpment cbjeotlve ls fcr dlreot
cbjeotlves. Lxamlne eaoh statement and ocnvert lt lntc a pcsltlve,
deslrable cbjeotlve.
5te 6: Repeat step 5 by determlnlng the dlreot cbjeotlve fcr the
statements llsted belcw.
5te ?: Revlew the cbjeotlves, oheoklng that all meansends
relatlcnshlps are valld and that ncne are mlsslng. Ccmplete the tree
by ocnneotlng the oards wlth llnes.
Using the Design and Monitoring Framework
7he design
and
monitoring
framework
is a simpIe
but powerfuI
design and
management
tooI. It
heIps buiId
consensus
with
stakehoIders
and creates
ownership of
the project.
35
Performance lndlcators, whlch may be elther qualltatlve or
quantltatlve, measure pro[ect results. The two maln polnts
to bear ln mlnd when determlnlng lndlcators are the
followlng.
- |f we can measure lt, we can manage lt.
- All lndlcators have to be measurable ln terms of
quallty, quantlty, and tlme (target).
Performance measures allow you to recognlze the
successful accompllshment of ob[ectlves. Llsted ln the
second column of the DMP, they preclsely speclfy each
result at the output, outcome, and lmpact levels (see
8ox A2.5).
Pro[ects are not lsolated from external
events and are lnnuenced by factors
outslde the dlrect control of pro[ect
management. These lnclude polltlcal,
soclal, nanclal, envlronmental,
lnstltutlonal, and cllmatlc factors.
Termed "assumptlons and "rlsks, these
are hlghllghted ln the fourth column
of the DMP. Assumptions are positive
statements of condltlons, events, or
actlons that are necessary to achleve
results at each level of the DMP. Risks
are negative statements of condltlons,
events, or actlons that wlll adversely
anect or make lt lmposslble to achleve the
lntended results. Assumptlons and rlsks
may fall lnto one of two categorles:
- those that lnvolve the wlder pollcy
and lnstltutlonal envlronment and
thus depend on external declslon
makers (e.g., pollcy envlronment,
lnstltutlonal capablllty, polltlcal
wlll),
- those assoclated wlth
uncontrollable events or
condltlons (l.e., polltlcal stablllty,
world prlces, lnterest rates, absence
of natural dlsasters).
Performance 7argets and Indicators
Box A2.4: Analyzing Alternatives
5te 1: Ccnflrm the deslred cbjeotlve. Thls then beocmes the cne
and cnly cutocme cf the prcpcsed prcjeot. 0nly cne cutocme shculd
be ldentlfled fcr eaoh prcjeot.
5te 2: ldentlfy sets cf cbjeotlves frcm the cbjeotlve tree that
represent alternatlve strategles tc aohleve the deslred sltuatlcn.
5te 3: lresent and dlsouss pctentlal alternatlves wlth apprcprlate
stakehclders. Make sure that eaoh grcup understands the
lmplloatlcns cf eaoh alternatlve fcr them, l.e., lf lt wlll affeot them
pcsltlvely cr negatlvely.
5te 4: Ccnflrm seleotlcn orlterla, l.e. eocncmlo, flnanolal,
scolceocncmlo, envlrcnmental, teohnloal, and lnstltutlcnal.
5te 6: Based cn the deolslcn made durlng step 4, oarry cut
neoessary assessments, analyses, and feaslblllty studles.
5te 6: Deolde cn the mcst apprcprlate strategles fcr lmplementlng
the prcpcsed prcjeot. The flnal deolslcn shculd be ocnsensual tc
ensure cwnershlp and tc maxlmlze the prcbablllty cf aohlevlng
deslred results.
Understanding Project
Assumptions and Risks
If we can mea-
sure it, we can
manage it.
36
Figure A2.6: Links between the 0bjective 1ree
and the 0esign and Monitoring Framework
Seleoted ^lternatlve DMF
lmpaot
0utocme
0utputs
^otlvltles lnputs
37
Box A2.6: Steps to 0etermining PerIormance Indicators
0utceme: The eduoatlcn
system ln scutheast
prcvlnoe prcvldes hlgher
quallty, equltable
eduoatlcn.
5te 1: Determlne
the baslo lndloatcr
(what ycu lntend tc
measure).
5te 2: Deolde cn the
quantlty
(lnorease/deorease).
5te 3: Desorlbe the
quallty (what klnd cf
ohange).
5te 4: ^dd the tlme
frame (by when).
The number cf graduates
(55 female and 45
male) passlng natlcnal
standard examlnatlcn
frcm lcwer lnocme
famllles (US55,000 per
year ln scutheast prcvlnoe
lnoreases frcm 10,000 tc
25,000 per annum
startlng ln year 4 cf
prcjeot lmplementatlcn.
Rloe ylelds cf at least
1,000 small farmers
(cwnlng 3 heotares cr
less) lnorease by 30
frcm 5 tcns tc 6.5
tcns annually startlng
ln 2007 whlle
malntalnlng the same
quallty (average welght
cf graln) as ln 2004.
(55 female and 45
male) passlng natlcnal
standard examlnatlcn
frcm lcwer lnocme
famllles (US55,000 per
year) ln scutheast
prcvlnoe lnoreases frcm
10,000 tc 25,000.
1,000 small farmers
less) lnorease by 30
frcm 5 tcns tc 6.5
tcns whlle malntalnlng
the same quallty
(average welght cf
graln) as ln 2004.
lnoreases frcm 10,000 tc
25,000.
1,000 small farmers
less) lnorease by at
least 30 frcm 5 tcns
tc 6.5 tcns.
Mcre and bettereduoated
students graduate.
Rloe ylelds cf small
farmers lnoreased.
0utceme: The rural,
agrarlan pcpulatlcn ln
prcvlnoe X has
lmprcved lts lnocme
earnlng pctentlal.
eduoatlcn.
Process Agriculture Education
Assumptlons and rlsks complete the cause-
enect loglc of the DMP (see gure A2.7 and
8ox A2.6). The completlon of the actlvltles
wlll result ln the outputs only lf certaln
assumptlons hold true and the rlsks do not
materlallze. Thls applles ln the same way
to the pro[ect outcome and the lntended
lmpact.
VerticaI Logic of
Assumptions and Risks
Assumptions
and risks
compIete the
cause-effect
Iogic of the
DMF.
38
After assumptlons and rlsks have been clearly
understood and specled, they provlde lmportant
lnslghts and gulde declslons durlng pro[ect deslgn and
management. The followlng management optlons are
avallable to deal wlth assumptlons and rlsks.
- Do nothing. Thls ls certalnly the best optlon lf
none of the assumptlons and rlsks are crltlcal
enough to endanger the achlevement of the
results. These fall lnto the low/low category.
- Change the project design. |f a rlsk ls hlgh and/or
Figure A2.?: Vertical Logic oI the 0esign and Monitoring Framework
es|gn and Men|ter|ng Framewerk Referenoe verslcn
es|gn
5ummary
IMPAC1
0U1C0M
0U1PU15
AC1IVI1I5 INPU15
an assumptlon ls crltlcal to the
success of the pro[ect, conslder
addlng an output, actlvltles, or
lnputs to address the assumptlon.
- Add a new project. |f the
posslblllty of addresslng the rlsks
and assumptlons ls beyond the
scope of the pro[ect, conslder an
addltlonal one.
- Abandon the project. |f a rlsk
39
ls hlgh and llkely to occur or an assumptlon ls
absolutely necessary and there are no outputs or
actlvltles that can reduce the rlsk or lncrease the
probablllty the assumptlon wlll hold true, you
may well conclude that the pro[ect ls too rlsky and
abandon lt.
- Monitor and mitigate assumptions and risks.
There are a number of posslble scenarlos where
close monltorlng ls approprlate. |n these cases, lt ls
essentlal to have clearly specled lndlcators. Make
provlslons for mltlgatlng measures by lncludlng
actlvltles and addlng resources.
Box A2.6: 0etermining Assumptions and Risks
5te 1: ^ssumptlcns and rlsks are best ocnsldered durlng the
cbjeotlve tree analysls. Fcr eaoh statement, ocnslder the
assumptlcns and the rlsks cf aohlevlng the level abcve, the oause
effeot relatlcnshlp.
5te 2: The analysls cf alternatlves shculd alsc evaluate
assumptlcns and rlsks. Fcrmulate assumptlcns and rlsks fcr thcse
alternatlves that are nct gclng tc be addressed by the prcjeot.
5te 3: ^ssess eaoh assumptlcn by lts neoesslty and sufflolenoy
lf/thentc the lcglo cf the prcjeot deslgn.
5te 4: Reflne the assumptlcn and rlsk statements. 0verly vague
statements oannct be mcnltcred cr mltlgated by prcjeot aotlvltles.
Fcr example, "the gcvernment remalns suppcrtlve cf the refcrm
prcgram" ls tcc general an assumptlcn and oannct be measured.
Restate lt as, "parllament apprcves the leglslatlve ohanges as per
agreed sohedule."
5te 6: Rate the lmpcrtanoe and prcbablllty cf eaoh assumptlcn and
rlsk. Fcous cn assumptlcns and rlsks that are orltloal
(pcsltlve/negatlve) tc the suooess cf the prcjeot and determlne thelr
llkellhccd.
An Introduction to Results Management
This guide explains the main principles of results management, the core of the managing for
development results approach. It also discusses the implications of implementing the approach
and its application in Asian Development Banks operations at the country and project levels.

About the Asian Development Bank
The Asian Development Bank (ADB)s work is aimed at improving the welfare of the people of
Asia and the Pacific, particularly of the 1.9 billion who live on less than $2 a day. Despite many
success stories, Asia and the Pacific remains home to two thirds of the worlds poor. ADB is a
multilateral development financial institution owned by 64 members, 46 from the region and 18
from other parts of the globe. ADBs vision is a region free of poverty. Its mission is to help its
developing member countries reduce poverty and improve the quality of life of their citizens.
ADBs main instruments for providing help to its developing member countries are policy
dialogues, loans, technical assistance, grants, guarantees, and equity investments. ADBs annual
lending volume is typically about $6 billion, with technical assistance usually totaling about $180
million a year.
ADBs headquarters is in Manila. It has 26 offices around the world and more than 2,000
employees from over 50 countries.
Asian Development Bank
6 ADB Avenue, Mandaluyong City
1550, Metro Manila, Philippines
Tel +63 2 632 4444
Fax +63 2 636 2444
information@adb.org
www.adb.org Printed in the Philippines

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