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Focusing on Development Outcomes in Projects

Focusing on Development Outcomes in Projects. SARAR M&E Workshop 20-21 June 2006 New Delhi, India. Outline. Management for results as an emerging practice Processes to manage quality Methodology to manage for results – outcome focused design and supervision.

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Focusing on Development Outcomes in Projects

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  1. Focusing on Development Outcomesin Projects SARAR M&E Workshop 20-21 June 2006 New Delhi, India

  2. Outline • Management for results as an emerging practice • Processes to manage quality • Methodology to manage for results – outcome focused design and supervision

  3. 1 - Management for Results is an emerging practice within the development community • Compared to Financial Management and Procurement, Management for Results is an emerging practice (within the last 10 years), now rooted in a broader agenda of the development community (Paris Declaration) • Management for Results has been practiced in recent years under several titles (M&E, management by objectives, balanced scorecard, budget rationalization) • The emphasis on Management for Results grows out of a need to improve development effectiveness. It will help the Bank and it’s development partners to tell their results story in a more convincing way

  4. 2 - Quality Processes • Processes to manage quality • Country level • Portfolio level • Project level

  5. The Bank’s view of what needs to be monitored now includes the entire results hierarchy • Impacts • Outcomes • Outputs • Activities • Inputs Results Hierarchy Longer-term benefits Effectiveness Results Deliverables Efficiency Procurement & Disbursements

  6. Key Events in the Bank related to Results Management • Jan ‘96 - Performance indicators become mandatory in all new projects; • Feb ‘97 - Strategic Compact commits the Bank to 100% quality-at-entry by FY2001; • June ‘97 - Revised supervision reporting system introduced, including indicators monitoring; • Aug. ‘97 - Revised project documentation introduced for new operations (including the Logical Framework); • 2002 - Results Secretariat unit formed within the Bank • 2003 - Logical Framework ‘simplified’ to the Results Framework • 2004 - Task Force on Organizational Effectiveness created • 2005 – Paris Declaration on Aide effectiveness

  7. Magnitude of the Results Management Task Bank-wide • 6 Bank regions (AFR, EAP, ECA, LAC, MNA, SAR) • 1282 new projects under preparation; • 2372 existing projects under supervision; • US$ 20-25 billion in new lending per year; the Bank also manages US$ 9 billion in trust funds

  8. Country level Results Cycle National Development Strategy Poverty Reduction Strategy

  9. SAR Portfolio level quality standard • Defines portfolio management as a management function that seeks to maximize the overall quality of the portfolio by (i) carefully screening new projects prior to entry, and (ii) identifying projects that are performing poorly for early closure or restructuring.

  10. Project level standards for SAR work • a. Standard for Quality-at-Entry (Design) • Project Concept Note (PCN) • Project Appraisal Document (PAD) • b. Standard for Project Supervision • Project status report (PSR) • Project completion report (PCR)

  11. a. Quality-at-Entry Standard A fully satisfactory project contains a well conceived intervention model (i.e., storyline) which… • is designed to bring about specific, worthwhile and economic outcomes; • embodies a focused and realistic strategy; • can be expected to document and achieve results (outputs and outcomes) within the time frame and resources allocated to the project.

  12. Typical Problems, Quality-at-Entry: • Bringing about specific, worthwhile, and economic outcomes: Many projects have difficulty bringing about identifiable outcomes because they are focused on other things: (i) the PDO is too high (i.e., CAS-level, long-term, sweeping, non-specific, non-attributable, unattainable), or (ii) the PDO is too low (i.e., output level, supply-driven, internally controlled by the project, or trivial). • Embodying a focused and realistic strategy: Many projects lack sufficient focus, realism and clarity with respect to strategy; • Documenting and achieving results within the time and resources available: Many projects do not document results adequately, and then have difficulty convincing observers that the intended results were achieved.

  13. b. Quality in Supervision Standard For existing projects in the portfolio, high quality supervision is characterized by… • proactive management of emerging problems, and • consistent, honest reporting focused on documenting and achieving the expected development outcomes. High quality supervision is accomplished without extension of the time frame or expansion of the funding available to the project. Quality supervision also meets or exceeds the requirements of the Bank’s current guidelines and procedures for projects under supervision.

  14. Typical problems in Supervision: • Supervision plans often lack a strategic vision and a necessary focus on outcomes; • Many projects fail to use key performance indicators as a management tool during supervision; • Too many projects lack a focus on outcomes in supervision reporting (ISR, MTR, ICR)

  15. 3 – Focus and methodology • It is important to focus on ‘outcomes’ • What is a focus on outcomes?

  16. Terminology: “Results” “Impacts” “Outcomes” “Outputs”

  17. It is important to focus on ‘outcomes’

  18. What is a focus on outcomes? • Provides a convincing storyline (outcome level); • Provides a clear and meaningful vision of success (objective statement); • Answers the question: What visible changes in behavior can be expected among end users as a result of the project, thus validating the causal chain?

  19. Outcomes appear on the demand side of the project, validating the causal chain Project implementation environment Impacts Longer-term goals (External) + -- ICR Project Objective Outcomes Demand Effectiveness Project Deliverables Outputs Supply (Internal) Efficiency Project Components Activities Project Funding ($) Inputs Implementing Agency

  20. The previous Logical Framework has been ‘simplified’ to the Result Framework Key Performance Indicators (KPIs) Hierarchy of Objectives Level Means of Verification Critical Assumptions Impact [IM] Result Framework PDO Outcome [OC] External Internal Output [OP] Input [IP]

  21. Outcome-focused projects utilize participatory design Output focus Outcome Focus

  22. Using a storyline to structure a design concept: Crossing the River of Uncertainties Results Future Vision of Success Present Unsatisfactory Situation

  23. The parts of a storyline (PDO) Problem Strategy Vision of Success Baseline KPIs End-of-project KPIs Present unsatisfactory situation Future vision of success

  24. A dysfunctional storyline fails to provide a consistent approach for the delivery of results Results Present Unsatisfactory Situation Future Satisfactory Situation River of Uncertainties

  25. A good storyline bridges key areas of uncertainty with a outcome-level approach Specify indicators to verify success Determine Strategy Specify Vision of Success [OC] Identify Problem Results Process Environment Reporting Environment Sector Context Country Context Present Unsatisfactory Situation Future Satisfactory Situation Project Storyline of PCN/PAD ‘Crossing the River of Uncertainty’

  26. Appendix:Project examples • Rural water • Rural health • Transport sector

  27. Increase in rural productivity and decrease in incidents of poor health caused by water-related diseases Significant increase in the adoption and use of improved water supply, sanitation and hygiene practices by participating households (objective achieved) Participating households gain access to completed water supply and sanitation facilities (output delivered) Target population selects among available options for water supply and sanitation services to meet their needs at affordable prices Awareness raising activities to promote new integrated approach Integrated water supply, sanitation and hygiene services are made available at the county level Capacity building for integrated delivery of water supply, sanitation and hygiene services at the county level Rural water example (causal chain) Demand Supply Problem: Poor water supply, sanitation and hygiene practices limit the productivity of rural households and often adversely affect health

  28. Rural water example storyline

  29. Rural health example storyline

  30. Transport sector example storyline

  31. The End ‘Focusing on Development Outcomes in Projects’ presented by Charles G. Chandler Assumption Analysis, Inc. www.AssumptionAnalysis.com

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