Managing For Development Results ( MfDR )

2. Managing For Development Results (MfDR) Krishna Prasad Dhakal Program Director National Planning Commission Secretariat

3. Managing for Development results • MfDR is a management strategy that focuses on usingperformance information to improve decision making. • MfDRmobilizes all human, financial, technological and natural resources – domestic and external – to achieve desired development results.

4. Managing for Development Results It shifts the focus from inputs (“how much money will I get, how much money can I spend?”) to measurable results (“what can I achieve with the money?”) at all phases of the developmentprocess.

5. Managing for Development results At the same time, MfDRfocuses on providing sound information to improve decision-making. This entails tracking progress and managing business based on solid evidence and in a way that will maximise the achievement of results.

6. Managing for Development results • MfDR implies that goals are clear, measurable, limited in number and concrete, with time-bound targets. • At the same time, they must be expressed in human terms (i.e. as development outcomes). • For this reason, MfDR is more than a methodology: it is a way of thinking and acting, built on a practical toolbox for improved public management. Source- www.oecd.org/dac/effectiveness/results

7. Why MfDR? • Linking resources to results • Improving the effectiveness of public management • Optimum utilization of scarce resources • Demonstrating results and value for money • Aid-effectiveness

8. Why MfDR? • Enhances government performance and accountability through- • setting clear objectives and goals, • Evidence-based decision-making, • Transparencyand • continuous adaptation and improvements • Developing performance and result culture

9. What is result culture?

10. Why result culture is? • If you do not measure results, you cannot tell success from failure • If you cannot see success, you cannot reward it • If you cannot reward success, you are probably rewarding failure • If you cannot see success, you cannotlearn fromit • If you cannot recognize failure, you cannot correct it • If you can demonstrate results, you can win public support Soucrce- world bank

11. Evolution of MfDR • MfDR concept emerged as a tool for linking outcome and output with inputs and activities thereby improving the effectiveness of resources spent. • From the realization of the need for concepts that ensure aid effectiveness (Monterrey conference on Finance and development in Mexico, 2002) to evolution of the concept, principles and practices (WB and Marrakech, Morocco Round Tables, 2004) and to sharing of country practices on MfDRin Vietnam(2007), it has attracted attention of both donors and recipients as well as the development experts around the world.

12. Evolution of MfDR • At the Paris High-Level Forum on Aid Effectiveness (2005), donor agencies and partner countries committed to specific action for country ownership, harmonization, and mutual accountability for the use of aid.

13. Five Principles of MfDR

14. Five Principles of MfDR 1. Focusing the dialogue on results at all phases of the development process - Ensuring outcome and output at all phases of development process. 2. Aligning programming, monitoring, and evaluation with result - Implementation strategies design to support outcome and output.

15. Five Principles of MfDR 3. Keeping measurement and reporting simple - Designing simple indicators to measure outcome, enhance data base and practice simple formats for regular reporting. 4. Managing for, not by, results - Expected outcome and output determining activities and inputs – reversing the conventional trend of determining outcome based on inputs. 5. Using results information for learning and decision making

16. MfDR cycle • settinggoals and agreeing on targets and strategies; • allocating the available resources to activities that will contribute to the achievementof the desired results; • monitoring and evaluating whether the resources allocated are making the intended difference; • reporting on performance to the public; • feeding back information into decision-making.

17. World bank (2004)

18. Major Components of MfDR • Measureable Indicators • Result matrix • Business plan • Result-based budgeting • Result-based M&E

19. Concept of Business Plan • A business plan is a formal statement of a set of business goals, the reasons they are believed attainable, and the plan for reaching those goals. It may also contain background information about the organization or team attempting to reach those goals.

20. Business Plan • The concept of business plan was come from private sector • Business plan is a backbone of MfDR. • Business plan is normally prepared for 3 years in rolling basis. • Business plan is to update every years because of its rolling feature.

21. MfDR as a link Between Macro and Micro planning • MfDR links macro and micro plan. • It establishes relationships between central\periodic plans and sectoral\ministerial plan and activities.

22. Business plan provides - • Key outcomes (i.e. strategic objectives) • Performance measures and targets • Time frames and responsibleagencies • Expenditure/Budget estimates • Monitoring and Evaluation mechanisms • Critical factors for successful implementation (key success factors)

23. A Snapshot of the Business Plan A business plan will- • Clarify thematic priority areas of interventions; • Specify Budget allocation required for achieving outcomes by driving the budgetary system toward a performance base; • Serve as a basis for negotiation between the budgetary authority and the related organization;

24. A Snapshot of the Business Plan A business plan will- • Work as a basis for developing key performance indicators; • Work as a basis for performance contract with the pilot organizations; • Work as a basis for performance measures of the implementation plans; • Help in prioritizing outcomes; and • Help in aid harmonization and aid effectiveness.

25. Indicative Table of Contents for the Business Plan • Development Context and Background • Vision and mission, goals, mandates, objectives and priorities • Major problems, challenges and opportunities (performance gaps and readiness analysis)

26. Indicative Table of Contents for the Business Plan • Key objectives and Expected outcomes – linked to TYP • Quantitative Targets – linked to TYP but disaggregated for each of three year • Strategies and Policies - linked to TYP • Core programs to achieve the objectives and quantitative targets (review of ongoing programs and prioritization)

27. Indicative Table of Contents for the Business Plan • Budget Allocation (Investment plan linked to MTEF) • Institutional development – address sources of gap identified through Readiness Assessment Analysis • Monitoring and Evaluation • Critical factors for successful implementation- Risk/Assumption

28. Indicative Table of Contents for the Business Plan APPENDICES • Appendix I: Results Matrix ( with all the essential components ) • Appendix II: Results Based Monitoring Framework • Any other Appendices

29. Result Framework

30. RBB/MfDR in Nepal Nepal as Leader • The Government of Nepal is regarded as a leader in the implementation of managing for development results (MfDR) in the South Asia region. • It has taken concrete steps in developing some core elements of results-based management. • It has established an MfDR framework and put in place mechanisms that link planning, budgeting, project and/or program implementation, and monitoring to development results (outputs and outcomes).

31. RBB/MfDR in Nepal • MfDR was started in 2007 with a technical assistance of ADB. • The first project(Fiscal year 2007-2009) initiated MfDR in 3 Ministries(Education, Local Development and Physical Planning) and 3 districts(Dang, Jumla and Jhapa). • The second project funded by ADB (from July 2009- July 2011) introduced MfDR in 2 more ministries (Agriculture and Energy) and6 departments.

32. RBB/MfDR in Nepal • Now 5 Ministries and 8 Departments have prepared business plans and they are in the process of implementation. • Result-based budgeting (RBB) is already in implemented in 2 Government institutions(Department of Transport Management and Katmandu Valley Traffic Police Division.)

33. RBB/MfDR in Nepal • Government of Nepal is planning to continue MfDR in above-mentioned 13 government ministries and departments. • GoN will introduceMfDR in other 13 (4 ministriesnamely Health and Population, Forest and Soil Conservation, Irrigation and Peace and Reconstruction and 9 more departments) government institutions. • GoN will mobilize its own resources to bring in action above-mentions activities.

34. RBB/MfDR in Nepal Major steps taken in this regard are- • Preparation of Periodic Plans (PRSP & TYIP), and Long Term Vision Documents • Linking Budget Allocation to Development Priorities through MTEF and Business Plans • Establishment & Strengthening of M&E Systems (PMAS, PPIS) • Start of Results Based Monitoring (Result-based M&E guidelines 2011 is prepared by NPC for donor-funded p1 projects.)

35. RBB/MfDR in Nepal Major steps taken in this regard are- • Performance-based Budget Release • Tracking of High Priority Policies • Public disclosure of the Key Information • Public Sector Reform

36. Challenges of RBB/MfDR in Nepal • To integrate, streamline, and institutionalize MfDR framework at all levels of the Government. • To enhance institutional and individual capacity in public sectors. • Political transition • To establish and strengthen effective M&E system. • To ensure quality of service performed.

37. At last but not the least……. • We are moving forward on the way of RBB/MfDR with great enthusiasm and hope. • We do believe that the global partnership and experience sharing are equally important in this endeavor.