A Results-oriented Approach to Capacity Development for Democratic Governance

1. A Results-oriented Approach to Capacity Development for Democratic Governance Workshop for CIDA Ottawa, 10.-11.December 2008

2. Session 1 Introductions and Learning Objectives

3. Learning Objectives • Make sense of capacity concepts • Recognise key elements of the CD challenge in the democratic governance area • 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

4. Session 2 The Capacity Development Challenge - Overview

5. Accra Agenda for Action “Donors will support efforts to increase the capacity of all development actors – parliaments, central and local governments, CSOs, research institutes, media and the private sector – to take an active role in dialogue on development policy and the role of aid..”

6. The Paris/Accra point of departure “We agreed in the Paris Declaration that capacity development is the responsibility of developing countries, with donors playing a supportive role, and that technical co-operation is one means among others to develop capacity.” Accra Agenda for Action

7. Then – what are we talking about? Capacity – synonyms: Ability, capability, aptitude, faculty, competence, facility, power, gift… So what is the capacity of this car?

8. CD – What does it mean? • “Many view capacity development in very vague terms“ • “Capacity development is not even a term that most people outside of development organizations really know much about.” • “The lack of a clear and agreed definition of what is meant by capacity development is a challenge”

9. 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....

10. Capacity is inside people, organisations and broader systems …shaped and influenced by external factors and actors

11. Capacity of people, organisations, systems Capacity – in plain figures Two non-exclusive options: “Working on the demand side” “Working on the supply-side” Supporting change Contextual factors and actors influencing capacity

12. Five key elements of the approach • Focus on change • Holistic approach • Focus on what is there • Results focus • Serious about ownership and about donors playing second fiddle – jointly…

13. The Change Function Dissatis- faction Process of change Vision Cost of change Enhanced capacity

14. 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

15. Tools for Change Dissatisfaction 1. Quick Scanning Matrix 2. Setting the stage: Mapping sector and governance actors 3. Political Economy and Stakeholder Analysis 4. Organisational assessment Vision and design 7. Sequencing/ scoping 8. Logical design Change process 5. Partners’ role in CD processes 6. Change management capacity and design

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

17. Actors, Organisations and System in Democratic Governance 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

18. Organisations as open systems Capacity of Organisations Analyticalframework - 1 Contextual factors beyond influence Development results Governance Inputs Outputs Immed. +intermed. Outcome Impact Contextual factors within influence

19. What assessments often find... • Lack of resources • Lack of planning • Lack of effective tax regime • No transparency • No effective oversight • No focus on results • No….

20. Understanding…nothing?? Measuring the difference…? Desired Reality: Democratic governance Current reality ..or understanding reality…?

21. Combining values and understanding? Measuring an “actionable” difference…? Desired reality: Progress towards democratic governance Current reality .. understanding reality… relevant benchmarks within reach .. credible change process

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

23. 1. Accra ambiguities on assessments • “Developing countries will systematically identify areas where there is a need to strengthen the capacity to perform….at all levels…and design strategies to address them” • Developing countries and donors will jointly assess the quality of country systems in a country-led process using mutually agreed diagnostic tools…. developing countries will lead in defining reform…Donors will support these reforms and provide capacity development assistance.

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

25. 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?

26. 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

27. 3. Outputs first – outcomes next! • Outputs are all aspects of products, services and regulatory functions • 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!

28. Challenge Outputs? Prepare for the House of the Commons! No, never ever! Yes, obviously!

29. 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

30. 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

31. 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?

32. 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?

33. 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?

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

35. Tool: Diagnosis of formal/informal fit

36. Summary: Diagnostic dimensions

37. Session 4 Getting CD results and processes right for democratic governance

38. Donor and partners’ input, and partner leadership Sustainable capacity and results Sustainable capacity and results is wrongly assumed leading to is leading to Breaking away from a donor-centric focus Figure 1: The traditional, limited assumption focusing on donor inputs Donor TC inputs & activities Figure 2: The extended assumption converting ownership to tangible commitments

39. Get CD results right Design logic: Start from impact, work backwards to determine if and how TC support may be relevant and feasible CD outputs: Organisation(s) with increased or enhanced capacity to perform Recurrent inputs to the organisation(s) (budget, staff) Increased or enhanced outputs (services, products) Outcomes for users of products and services Wider impact Internal resources dedicated to CD CD processes External TC support to CD

40. Get CD results right Design logic: Start from impact, work backwards to determine if and how TC support may be relevant and feasible CD outputs:Tax authority has procedures, staff and managers able to administer VAT VAT revenue up 200%, coverage 80% complete VAT revenues transparently used in budget for social services Increased literacy, improved health, stronger social contract Manager, staff, some costs Change process lead by managers with training, coaching, joint development of new processes V.A.T. experts

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

42. Challenge Which words are most positively connected with capacity to develop and change? Powerful, harmony, tension, emotional, agreement, forceful, conflict, orderly, unknown, planned, control, interested, motivated, interests, drive, reason…. Add to the list…

43. 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

44. 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

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

47. Four options for interventions

48. Change interventions a la carte

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

50. 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???