Learning Curves

OED
January2008

ManagingforDevelopment ResultsinADB

Developmentresultsaresustainedimprovementsinthelivesofpeopleindeveloping countries.Managingfordevelopmentresultsistheprocessofchangethatanorganization adoptstoalignitsvalues,culture,policies,strategies,andpracticesbehindsetsofwell designedanddefinedresultsthatdescribeperformance.Itleansontoolsthatimprove decisionmakingforstrategicplanning,riskmanagement,progressreporting,andoutcome evaluation. In2004,ADBcommittedtomanagefordevelopmentresults.DoADBstaffthinkthatADBs internalenablingenvironmentisconsistentwiththeknownrequirementsforsuccessfully managingfordevelopmentresults?Ifnot,howcantheenvironmentbestrengthened?IsADB makingsatisfactoryprogress?
Background In2004,theAsianDevelopmentBank(ADB) adoptedareformagendatoraiseitsperformanceasa partnerofitsdevelopingmembercountriesandasa multilateraldevelopmentbank.Themovewas influencedbytheenhancedPovertyReduction StrategyofADB,finalizedthatyear;ADBsLongTerm StrategicFramework,20012015;andtheagreement reachedin2002attheInternationalRoundtableon BetterMeasuring,Monitoring,andManagingfor DevelopmentResultsthatmultilateraldevelopment banksmustprogressivelyintroduceresultsorientated initiativestoimprovetheirdevelopmenteffectiveness. Inlinewiththeapproachtakenbymanyother developmentorganizations,ADBhassetthe foundationsofmanagingfordevelopmentresults (MfDR)onthreepillars:(i)countrycapacity,(ii)ADBs resultsorientation,and(iii)effectivepartnerships. In2007,theOperationsEvaluationDepartmentof ADBconductedaSpecialEvaluationStudyon ManagingforDevelopmentResultsintheAsian DevelopmentBank:APreliminaryAssessment. 1 The study,whichfocusedonADBsresultsorientation, aimedtoevaluateADBsgeneralprogressin2007, beforegoingontoassessADBsoperational implementationofMfDRandrelatedoutcomesin2009.
Operations Evaluation Department Asian Development Bank

Itaimedalsotocomplementtheprogressreports preparedbytheResultsManagementUnitinthe StrategyandPolicyDepartmentbytakingabig pictureviewoftheinitiativeandbyprovidingtimely guidancetoADBsManagementandtheDevelopment EffectivenessCommitteeoftheBoardofDirectors. Thestudysmethodologyincludedsurveyresponses from958staff(41%responserate),11focusgroupswith about150participants,oneononeinterviewswith some50staffincludingvicepresidentsanddirectors general,consultationswithsixdevelopment organizations,andareviewofvariousdocuments. SummaryofFindings ADBsCompliancewiththeKnownRequirements forMfDR.Investigationsfocusedon(i)senior leadershipsupport,(ii)staffskillsandtraining,(iii) organizationalculture,(iv)managementpracticesand incentives,(v)capacityandresources,(vi)managing thechange,and(vii)businesssystemsandprocesses.A salientfindingwasthatstaffviewtheroleofsenior managementasakeyenabler.Atthesametime,they believedthatseniormanagementssupporthasnot alwaysbeentranslatedintopractice,visiblysustained, ormayhavebecomedilutedduringtheimplementation process.Elsewhere,staffopinedthatADBsculturestill emphasizesachievingloanapprovals,disbursements,

6 ADB Avenue, Mandaluyong City, 1550 Metro Manila, Philippines Tel +63 2 632 4444; Fax +63 2 636 2444; evaluation@adb.org; www.adb.org/evaluation/

andlendingtargetsasopposedtofocusingmore activelyondevelopmentresults.Also,staffidentified managementpracticesandincentivesasanareain whichimprovementscontinuetobeneeded.In addition,theystressedtheneedtocontinuerefining ADBsbusinesssystemsandprocessesandensurethat outdatedoroutmodedprocessesareremovedasthey aresuperseded.Thestudyrevealedthatmanystaffare uncertainaboutthenatureofADBswiderresults agendaandhowMfDRinterfaceswiththeirworkatthe operationallevel:theysoughtgreaterguidanceasto whatMfDRis,andhowitrelatestotheirduties.Onthe positiveside,thestudysuggestedthatmoststaff believetheyhaveaclearunderstandingoftheresults theyneedtoachieve,andthattheyhavetheknowledge andskillstoberesultsoriented. AssessmentofADBsProgressinAdoptingMfDR. Investigationsresearched(i)staffperceptionsof progress,(ii)selfassessmentsbyADB,(iii)the independentassessmentbyUniversaliain2005,(iv)the qualityatentryofprojects,(v)thefivestagesof managingforresults,and(vi)theexperienceofsix otherdevelopmentorganizations.Thestudyjudged thatADBsprogressandchallengeshavebeengenerally comparabletothoseofothermultilateraldevelopment banks:thisisconfirmedbytheperformancedata presentedinthe2005and2006COMPASreports, documentsonMfDRobtainedfrommultilateral developmentbanks,andconsultationswiththesix developmentorganizations.(Thestudyalsoassessed theexperiencesoftheseinMfDR.)ADBisintheearly stagesoftransitionalongthecontinuumofawareness, exploration,transition,fullimplementation,and continuouslearning,andhasnotyetreachedthatoffull implementation.ADBhasmodifiedpoliciesand introducedtoolstosupportMfDR,developednew trainingcourses,andundertakenpreliminaryworkto supportthedevelopmentofanewcorporate managementinformationsystem.However,giventhat managerialdecisionswithinADBarenotroutinely informedbyrelevantoutcomedata,ithasnotyet achievedthefullimplementationofMfDR.ADBs progressreportstotheDevelopmentEffectiveness CommitteeshowthatADBisundertakinganumberof actionstostrengthenitscapacitytomanagefor developmentresultsthrough(i)resultsbasedcountry partnershipstrategies;(ii)resultsbasedapproachesat theprojectlevel;(iii)improvementofresults monitoringandreportinginoperations;and(iv) learninganddevelopmentprograms,practicenotes,
Learning Curves available @ www.adb.org/evaluation/

guidelines,aswellasotherpublicationsonMfDR.Since 2000,therehasbeenmuchimprovementinthequality ofdesignandmonitoringframeworkspreparedfor projectandprogramloansandforadvisoryand regionaltechnicalassistance(evenifthequalityofthe frameworksfortheformerisconsiderablybetterthan thosepreparedforthelatter).Butstaffaredividedin theirassessmentofADBsprogressandthestateof affairshasnotimprovedsincethesurveyby Universalia:thisraisesquestionsaboutthelevelofstaff awarenessandownershipoftheagenda,andtherefore howstaffcanengagemoreeffectively. Recommendations ThestudyofferedtoADBsManagementandthe DevelopmentEffectivenessCommitteethreescenarios andarecommendationforadvancingMfDR.Thefirst scenario,MaintainCurrentLevelofEffort,wouldbe appropriateifitwereconsideredthatADBs implementationofMfDRisprogressingsatisfactorily andthatitcanmovefromthetransitionstagetothefull implementationstagewithoutincrementaleffort.The second,ModestIncreaseinEffort,wouldbean appropriatechoiceifADBsManagementwasofthe viewthatADBsRevisedActionPlanforMfDR,dated 2006,isbasicallysoundbutthatadditionaleffortis requiredtofacilitatethefullimplementationofMfDR. Thethird,SignificantIncreaseinEffort,wouldbean appropriateresponseifADBsManagementconsidered thatADBsimplementationofMfDRrequired considerablymoreemphasisonchangingestablished practiceinordertoachievefullimplementationina shortertime.Thestudyrecommendedthat: ADBshouldpursueacourseofactionsimilartothat describedunderScenario3,SignificantlyIncreased Effort. Feedback WhentheseLearningCurveswereprepared,ADB ManagementsResponseandtheChairsSummaryof theDevelopmentEffectivenessCommittee Discussionswerenotavailablefordisclosuretothe public.ThestudywascompletedinDecember2007. 1 ADB.2007.SpecialEvaluationStudyonManagingfor DevelopmentResultsintheAsianDevelopmentBank:A PreliminaryAssessment.Manila.Available: http://www.adb.org/Documents/SES/REG/SSTREG 200732/SSTREG200732.pdf

Team Leader: J. Scott Bayley; Tel +63 2 632 5753; sbayley@adb.org