Regional Technical Assistance (RETA) 6306 Mainstreaming MfDR for Poverty Reduction in South Asia

1. Regional Technical Assistance (RETA) 6306 Mainstreaming MfDR for Poverty Reduction in South Asia

2. Agenda • 15:00 – 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, NPCS • 15:35 – 15:50 Remarks by Ziba Farhadian-Lorie, Principal Economist, SARD, ADB • 15:50 – 15:55 Remarks by Paolo Spantigati, OIC, NRM

3. 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, ADB • 16:45 – 17:30 Facilitated discussion and agreements on broad areas of intervention, Facilitated by Liam McMillan/ Bernard Woods • 17:30 – 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

4. Regional Technical Assistance (RETA) 6306 Mainstreaming MfDR for Poverty Reduction in South Asia

5. RETA 6306:Organization-Level Results Management

6. Results as an Organization Change Process • More than a new system of measurement • A long term change process involving • reorientation of thinking and planning • change at the institutional level • change at the management level

7. Drivers of Change • External force • Leadership and vision • Positive • Negative

8. Implementing a Results Focus • 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.

9. 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 and • feedback • Complex results agenda • Requires organizational and • behavioral change which is • likely to run counter to existing • culture Few countries have made the jump

10. 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.

11. The ‘Alignment’ Task • Align the internalstructures, 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

12. Managing for Results: Behavioral Principles • What gets measured gets done • You don’t get what you don’t measure • People always make decisions to act for the ‘right’ reasons • People will align behavior with rewards

13. International Lessons Learned

14. International Experience • With the implementation of MfDR now a growing body of evidence on success factors • Philippines, Nepal, Malaysia, Canada, China, Australia, Viet Nam etc • The international experience is broadly supportive of the steps Nepal has taken and the future direction

15. Nepali & International Convergence • Leadership at central level is critical • Well formulated, results based strategic plan is required • Frameworks with results and indicators • Consistent budget allocation in line with the priorities of the plan is necessary • Plan must be moved beyond just being on paper

16. Convergence Continued • MfDR adapted to the country context • Country level coalitions of government and donors to support MfDR • Requirements for reporting and accountability

17. 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 led • Involvement of elected representatives in results accountability processes • Universal incentives supporting MfDR behavior at the agency/department level • Statutory requirements for reporting and accountability

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

19. RETA 6306 Planning and Process

20. RETA 6306 • Readiness Assessment • Planning and pilot development • Implementation • Donor coordination

21. RA Objectives • To provide a descriptive and analytical assessment of the level of readiness of a particular organization to improve it results management orientation • To provide the information necessary to develop a capacity building plan to strengthen its results management approach

22. 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 organisation • At each stage of the process the ‘readiness’ of the particular aspect of the organization is evaluated and capacity gaps are identified.

23. Readiness Assessment Categories • Clarity of Results • Adequacy of Resources • Management Infrastructure: • Strategy and policy • Structure • Systems and processes • Values, culture, vision and leadership • Monitoring systems Plus the context – the External Environment

25. RA Analysis • The RA enables the ‘mapping’ of readiness against the six categories of the readiness tool • This enables identification and comparison of key areas of capacity weakness • RA details provide information required to develop interventions to strengthen capacity in the six categories

26. Analysis of Assessments.

27. RA Findings and Implementation Plans

28. Elements of the Readiness Assessment

29. 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

30. 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

31. 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!

32. 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

33. 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 linkages • No 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

34. Issue- Diagnostic 2 Variable : Adequacy of Resources • Insufficient budget to achieve national targets • Need for focused human resource development plan • Human resource capacity building in organizational management generally overlooked • Modern IT systems and equipment weak at MOPPW, DDC • no official internet connection - personally arranged)

35. Issue- Diagnostic 3 Variable: Management Infrastructure • Two levels of policy mismatch • LSGA and Organizations • between organizations • Parallel systems being developed in water supply and sanitation • Weak monitoring structure and lack of resources at ministry level • lack resources blocks demand driven system • Resources at department level are higher

36. Management Infrastructure continued • 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

37. 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

38. Issue- Diagnostic 4 Variable : Values/Culture and Vision/ Leadership • Low morale of the civil service and low understanding of MfDR • Traditional working patterns like Tippani remain • some change has started within organizations

39. 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 levels • No MIS at MOPPW and DDC • No formal periodic publication showing performance gap based on M&E information at most levels • Information on NGO and private sectors weak despite their increasing presence.

40. Major Suggestions and RETA Intervention • Encourage planning which incorporates a organization management and leadership perspective • strengthen search committee systems to improve leadership in organizations • Rectify policy mismatches • Extend performance based evaluation system with incentives/punishment • Encourage 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)

41. 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

42. 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

43. Discussion of the Key Issues

44. Presentation:TA 4765

45. Keynote Address Dr. Jagadish C. Pokhrel, Vice Chair Planning Commission

46. Closing Remarks Vidyadhar Mallik, Secretary, Ministry of Finance

47. MfDR Infrastructure

48. 6. Overarching Government MfDR Approach and Structure Policy Mandate for MfDR Planning Setting Dev. Objectives Finance Budgeting for Results Public Service Incentives & Rewards Statistics Data on Results Audit Performance Accountability Oversight Executive Branch Supervision 1. Clarity of Results 2. Adequacy of Resources (human, financial, physical, technical 3. Management Infrastructure 4. Values (Culture) and Vision (Leadership) • 6. Clients / Stakeholders • Demand • Results Setting and Review 5. Monitoring Progress in MfDR

49. 6. Overarching Government MfDR Approach and Structure Policy Mandate 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

50. 6. Overarching Government MfDR Approach and Structure Planning Setting Dev. Objectives • 1. Clarity of Results • Results framework with indicators • Standards and targets for outputs • Outputs cascaded within organisation • Outputs incentives, rewards and censure