A Results-based Approach to Capacity Development

1. A Results-based Approach to Capacity Development Workshop Washington 3-4 March 2008

2. Session 1 Introductions and Learning Objectives

3. Learning Objectives • Recognise key elements of the CD challenge • Be able to assist partners adopting a results-based operational approach to CD • Know options for and limits to own role in support to CD • Develop options for possible future joint learning events and processes

4. Session 2 The Capacity Development Challenge - Overview

5. The point of departure “The new consensus, articulated strongly in the 2005 Paris Declaration, sees capacity development as a necessarily endogenous process, strongly led from within a country, with donors playing a supporting role” DAC Good Practice Paper

6. The point of departure - 2 Further elements of this consensus are: • a systematic approach to a flexible, best-fit way that considers individuals and organisations • importance of an enabling environment; • the importance of a good understanding of the broader international and country contexts; • identifying and supporting sources and factors of country-owned change; • making the development of capacity more sustainable by delivering co-ordinated, demand-driven support • working through national systems; and a focus on learning from experience

7. The definitions ... Capacity: The ability of people, organisations and society as a whole to manage their affairs successfully. Capacity development: The process by which people and organisations create and strengthen their capacity.... Support to capacity development: Inputs to capacity development processes delivered by external actors....

8. Four key elements of the approach • Focus on change • Holistic approach • Results focus • Serious about ownership and about donors playing second fiddle – jointly…

9. 1. The Change Function? Dissatis- faction Process of change Vision Cost of change Enhanced capacity

10. Incomplete functions • D x P x V = Change! • D x P = Fast road to confusion • D x V = Anxiety and frustration • P x V = Bottom of inbox

11. Tools for Change Dissatisfaction 1. Setting the stage: Delimiting the sector 2. Political economy and institutional analysis 3. Organisational assessment 4. Sector governance assessment 5. Stakeholder analysis Vision and design 9. Sequencing/ scoping 10. Logical design Change process 6. Self-assessment of change capacity 7. Change management 8. Donor roles

12. Session 3 Assessing capacity: Holistic, outputs, power issues – what to look for?

13. Organisations as open systems Capacity of Organisations Analyticalframework - 1 Contextual factors beyond influence Governance Inputs Outputs Outcome Impact Contextual factors within influence

14. What assessments often find... • Lack of resources • Lack of planning • Poor management • Poor motivation • No monitoring • No focus on results • No….

15. Understanding…nothing?? Measuring the difference…? Desired reality Current reality ..or understanding reality…?

16. Capacity diagnosis, step by step.. “Outside-in”: • Why assess, who, what is the vantage point? • Watch the context • Focus on results • Inputs • Go inside the box: other boxes...and • What lies beneath?

17. 1. The vantage point or basic question Which organisations to assess? Where to consider support to capacity development? Start from wider programme objectives Work backwards: identify the organisations which produce outputs which are significant for achieving outcomes and objectives

18. Example • You are discussing how to improve access to and quality of primary health care • Organisations to consider could include: • Front line service provider units – public and non-public • Secondary health care level • Units delivering vertical programmes • Health training/education institutions • Ministry of Health • Health professional societies/unions

19. 3. Outputs first – outcomes next! • Outputs are all aspects of products and services • Past output levels point to likely future • Outputs are good proxies for capacity • Capacity changes causes outputs to change • Dialogue about outputs diverts attention from inputs, vague plans, TA, training… • But: It is not that simple!

20. Managing by Results Meet the targets “Hard” Outputs “Objective” assessment or verification Outwards accountability Rigorous methods and high quality data Sanctions and rewards Encourages conservative behaviour Managing for Results Continuous improvement Also “soft” outputs, outcomes and impacts Self-assessment and participation In- and outwards accountability Rapid, low cost methods Motivation, learning Encourages risk-taking, experimenting Tensions in results-orientation

21. Strategy Are goals and strategies clear? Do they fit inputs and contexts? Structures How is work divided? Internal Relationships Between boss-staff, peers, and units? Constructive conflict resolution approaches? Leadership Do someone keep the boxes in balance; adapt to the context? Rewards (motivation) Are there incentives for doing key functions? Helpful mechanisms (systems & processes) Are coordinating and control instruments adequate (planning, budgeting, auditing, monitoring) Context (actors and factors) (what constraints and demands does it impose?) 5. Capacity: The six-box model

22. The 6 boxes unpacked • Strategy: Are goals and strategies clear? Do the inputs and contexts fit? • Structures: How is work divided? • Leadership: Does someone keep the boxes in balance; adapt to the context?

23. The 6 box unpacked (2) • Internal Relationships: Between boss-staff, peers, and units? Constructive conflict resolution approaches? • Helpful mechanisms (systems & processes): Are coordinating and control instruments adequate (planning, budgeting, auditing, monitoring) • Rewards (motivation): Are there incentives for doing key functions?

24. 6. What lies beneath? • Look for both the “functional” and the “political” dimensions of organisations • Look for both formal and informal aspects • All organisations have informal aspects and a political dimension • Functional, political, formal, informal - all can strengthen or weaken capacity and change prospects Question: Who needs to know what, and when, about these aspects?

25. “Functional” and “political” dimension of capacity

26. Tool: Diagnosis of formal/informal fit

27. Session 4 The nettle of Stakeholder Analysis

28. Embedded in the context = Agents/actors inside and outside organisations Institutional factors Structural factors

29. Stakeholders and actors.. • Individuals and collectives pursuing particular interests... • Political & economic elite, civil servants, the military, civil society, donors... • Always strategizing, always dynamic... • ..and embedded in structural and institutional drivers of and constraints to change • How can actors help to deal with factor constraints and exploit drivers?

30. Actors & Stakeholders Political System/Government Context Citizens, voters, consumers, economic agents, elites etc. Checks and balances organisations Core public agencies Public and private frontline agencies Donors Governance, demand Accountability, supply

31. Tool 1: Stakeholder and actor analysis • Read the tool • Select a case of one of you: identify interests, power and salience related to 3-4 key stakeholders • Discuss implications, compare other experiences in the group • Time for the task: 45 minutes

32. Summary: Diagnostic dimensions

33. Session 5 Change Management and Ownership – how to make it operational?

34. Four options for interventions

35. Change interventions a la carte

36. Characteristics of change processes • Rarely linear • Normally contested and resisted • Most often incremental • Goals and plans have ritual functions as much as managerial • Losses materialise quicker than wins • Change creates angst

37. Key factors for successful CD - process • External pressure for change • Leadership, creating sense of urgency, purpose and feasibility • Credible coalition for change, with enough power to deal with resistance • Carefully crafted change strategy and cunning change management • Flexible change process

38. Elements of change processes Agenda setting -> Formulation/Design -> Approval -> Implementation -> Pausing/phasing out ->

39. Tool 2: Change Management Design • Read the tool • Discuss applicability and relevance • Time for the task: 45 minutes

40. Session 6 Donor support to CD – roles, means – and joint approaches

41. A Challenge from Paris “Capacity development is the responsibility of partner countries with donors playing a support role” Paris Declaration 2006 - What does that mean???

42. Focus on the sector/organisations • Don’t ask what donors can do for the organisation/sector… • ..ask what the sector/organisation might want to do to strengthen its capacity – • - and whether donors might be helpful or not to that process – • Question: What could that entail?

43. Tool 3: Development partners’ roles • Read the tool • Select a recent case: identify the roles actually played • Add experiences from other countries • Discuss if there is a trend between what was done and what maybe should have been done • Time for the task: 45 minutes

44. Discussion – donor roles in CD support? • Capacity development is a domestic affair • So, how proactive should donors be? • If it depends on the context, which context factors are then important?

45. Donor roles in developing support • Support development of broad directions for change and of change strategy • Focus on feasible CD targets in terms of changes in organisational outputs • Understand drivers and constraints to become a trusted partner • Play a catalytic role, do not design or implement • Ensure that CD inputs can adapt to the process rather than vice versa

46. Joint CD support in sector programmes • The SWAp is all about strengthened sector capacity, capacity often the difficult missing link • CD is a core part of the sector programme, not an add on – get it on the agenda • Same principles apply for CD as for other SP areas: • Alignment to framework and joint plans before joint funding modalities • Share diagnostics, reviews, dialogue • Exploit comparative advantages – and disadvantages…

47. Own efforts Behave! Get a grip on the context for CD Deepen dialogue Stop topping-up, poaching of staff etc. Don’t go alone Seek and share knowledge Financed/acquired Peer mechanisms Piloting new ways Staff exchanges Knowledge acquisition TA Training How donors can support CD processes

48. TA - Triangular Affairs- Uneasy Balances? Customer? Client? Beneficiary? Partner? Stakeholder? Employer? LOCAL INSTITUTION(S) Doer? Middleman? Mediator? Facilitator? Controller? Spy? DONORS TA Employer? Stakeholder? Customer? Partner? Benefactor?

49. Session 7 Bringing the ingredients of the CD cocktail together

50. Repetition: The Change Function? Dissatis- faction Process of change Vision Cost of change Enhanced capacity