Understanding CIDA's Results-Based Management Approach

2. An orientation to CIDA’s approaches to programming with its development partners

3. Sustainable Human development Many inputs – but what are the results? Why do we talk about RBM?

4. Brief History of RBM • Genesis of the Logical Framework (LFA, Zopp) – 1968 • RBM - formally introduced in USAID and DFID 1990 • CIDA introduces RBM in1994 • Focus on Results – Millennium Development Goals • Global focus on RBM at a string of meetings starting in 2002 (Monterrey, Rome, Marrakech etc.) • Paris Declaration 2005 – strengthening aid effectiveness: • Harmonizing practices • Alignment • Changing “ownership” of aid activities • Mutual accountability • Accra 2008 – reinforces the focus on development results • 2009 - new UNDP focus on “managing for development results”

5. Integrating Performance To achieve results

6. Integrating Programme / Project Performance RBM

7. Overall Objectives • To provide partners with an opportunity to deepen their own and CIDA’s understanding of respective project proposals which it will be partnering organizations on and • To provide CIDA with an opportunity to orientate partners on the approaches which CIDA takes to its development programming with its partners. • To work with partners to generate the documentation required to process contribution agreements.

8. CIDA’s 2008 RBM Policy Update RBM policy update needed to make performance management more (a) rigorous, (b) modern and (c) pragmatic in order to: • Standardize and provide better coherence in RBM terms, definitions and methodology used in across the agency, • Align RBM at CIDA with Canadian Government approach, and • Harmonize RBM at CIDA with the International Donor Community

9. RBM@CIDA WHY is Results Based Management a preferred development planning, implementation and reporting approach? It focuses on the impact of interventions in the short, medium and long term

10. “Results” in Day to Day Life Outcome Result Immediate (short-term), Satisfied (after having eaten this sauce, main dish or meal) Inputs Water Salt, condiments Cooking oil Vegetables Meat, fish Firewood Working time Outcome Result Medium- term effect, improved physical well-being (if I can make sure I have a balanced diet over time) Activities Preparing the ingredients, cooking the meal, serving the meal Outcome Result Long-term effect, ‘quality of life’ (if I can ensure I have a balanced diet for more than 5 years) Outputs The sauce, the main dish, the meal

11. Typically, governments, development agencies and CSOs have focused their attention on: • inputs (what they spend), • activities (what they do), and • outputs (what they produce).

12. What is Missing? The destination►When we simply focus on inputs (spend), activities (do), and outputs (goods and services produced) we are blind - we don`t know our destination so we can’t see when and where we have gone off course

13. Modern development management requires planners, programmers, financial officers and M&E specialists to look beyond activities and outputs to focus on: actual results

14. TBS and CIDA (2008) CIDA (1996-2008) OECD DFID USAID NORAD VariousTerminology UsedAroundthe World Impact Ultimate Outcome Goal Impact Goal (Impact) Strategic Objective Outcomes Intermediate Outcomes Intermediate Result Purpose Outcomes (short and Medium term) Purpose (Outcome) Immediate Outcomes Project level Intermediate Result Outputs Outputs Ouputs Outputs Outputs Activities Activities Activities Activities Activities Activities (Process)

15. Results-Based Management RESULTS PERFORMANCE

16. What is a Result? • A result is a describable or measurable change in state that is derived from a cause and effect relationship. • Source : RBM in CIDA - Policy Statement (2008)

17. Two Major Elements in “Results” CAUSALITY CHANGE • Measurable transformation • In a group • In an organization • In a society • In a country • Cause and effect relationship between an action and the results achieved – this can be described as the“If-then” logic.

18. Results-Based Management • Defining realistic expected results, based on appropriate analyses; • Clearly identifying program beneficiaries and designing programs to meet their needs; • Monitoring progress towards results and resources consumed, with the use of appropriate indicators; • Identifying and managing risks, while bearing in mind expected results and the necessary resources; • Increasing knowledge by learning lessons and integrating them into decisions; and • Reporting on results achieved and the resources involved Risk Management

20. Immediate outcome Inter-mediate outcome Ultimate outcome Development results

21. The Importance of Analysis The results chain should be informed by analysis (gender, environment, social, political etc…) Ensure that gender equality results are identified at outcome levels as required by policy Ensure that there is a logical connection through activities, outputs and outcomes to support the integration of cross-cutting themes (I.e., don`t just stick them in the results)

22. Problem Tree Analysis

23. The Result Statement • A result statement outlines what a policy, program or investment is expected to achieve. At CIDA, result statement = Outcome. • A result statement or Outcome describes the change stemming from CIDA’s contribution to a development activity in cooperation with others. • Different types of change (and each type has its own place in the LM): • Change in system, state • Change in circumstances • Change in behaviour or practices • Change in functioning or performance • Change in knowledge or awareness • Change in skills or abilities

24. Language of Change Results are about change ► for the better • Change is signified by words such as: • Improved (health conditions) • Increased (income of local farmers) • Strengthened (capacity of local NGOs) • Reduced (vulnerability) • Enhanced (ability to apply RBM) • Promoted (engagement with stakeholders)

25. LM Example

26. Using the Logic Chain • Ultimate Outcome: Change in State for target population • Intermediate Outcomes: Change in practice and/or behaviour of target population • Immediate Outcomes: Change in knowledge, awareness or access (etc) • Outputs: Complete activities (good and services) • Activities: What CIDA/partners do to mobilize inputs and create outputs. ? ? ? ? ?

27. Integrating Rights into RBM Gender Environment Labour Disability Children Older People Land Food Security Development Built into the Results Framework

28. Performance Measurement Framework (PMF) • Used to systemically plan the collection of relevant data to assess and demonstrate progress made in achieving expected results • Ensures performance information is collected on a regular basis • Allows for real-time, evidence-based management decision making • Developed and monitored through consultation with partners, other donors, local stakeholders and sometimes beneficiaries

29. RBM@CIDA THE PERFORMANCE MEASUREMENT FRAMEWORK

30. Performance Indicators • A performance indicator is a unit of measure-ment that specifies what is to be measured along a scale or dimension but does not indicate the direction or change. • Performance indicators are a qualitative or quantitative means of measuring an output or outcome, with the intention of gauging the performance of a program or investment. • Performance indicators are neutral & do not indicate directionality & do not embed a target.

31. Quantitative (discrete measures): number of, frequency of, ratio of, variance with, % of, etc.: Qualitative(experiential or perception): attitudes, skills, perceptions of, quality of level of (understanding), beneficiary opinion, extent of, congruence with presence of etc.: Examples of Performance Indicators

32. Gender Sensitive Indicators • Measure the gender gaps and inequalities you are seeking to address • Points to changes is the status and roles of women and men over time • Requires the collection of data disaggregated by sex, age • Women and men should be actively involved in the planning process and selection of indicators that make sense

33. Performance Indicator vs. Target vs. Result Often there is confusion between results, performance indicators, and targets • Results: are precise statements of what is to be accomplished: • Increased literacy among groups X and Y. • Performance indicators: specify exactly what is to be measured along a scale or dimension, but do not indicate the direction of change • Literacy rate, level of knowledge • Targets: specify a particular value for an indicator to be accomplished by a specific date in the future • Total literacy rate to reach 85% among groups X and Y by the year 2010

34. Results Based Budgeting RBB is an integral part of the RBM cycle REPORTING BUDGETING

35. Results-based implementation Results based monitoring, evaluation and reporting Results-based costing and budgeting Results-based planning

36. Project and Programme Results • Finance and resourcing results through RBB Operations Planning Programming and Implemen-tation Costing & Budgeting IT systems Capacity and Organisational Development Knowledge Management Performance Management Monitoring & Evaluation • Human and Organisational Results • Performance & Sustainability Results

37. Results Based Budgeting (RBB) A results-driven budgeting process in which: • Programme formulation and resources justification involve a set of predefined objectives, expected results, outputs, inputs and performance indicators which constitute a ‘logical framework’; • Expected results justify resource requirements, which are derived from — and linked to - outputs to be delivered, with a view to achieving such results; and • Actual performance in achieving results is measured by predefined performance indicators

38. Results Based Budgeting “Results-based budgeting (RBB) is about formulating budgets that are driven by a number of desired results which are articulated at the outset of the budgetary process, and against which actual performance is measured at the end of the period.”

39. Traditional Budgeting Framework Results directly linked to the budgeting approach Outcomes What we invest What we do Budgeting approach focuses on costing activities / deliverables

40. Attribution Gap Long-term Goal (Impact) Outcomes Activities Outputs Inputs Traditional Budgets Results-based budgets Costing Results PLANING FOR RESULTS Can we cost for the effects or behavior changes resulting from program outputs? Costing the products and services used to simulate the achievement of results Costing the utilization of resources to generate products and services Costing resources committed to program activities Can we cost for long-term, widespread improvement in society? Costed Results Costed Implementation

41. Results Based Budgeting Approach Old Budgeting Focus New Budgeting Focus

42. 1. Risk Identification • Environment scanning • Partner collaboration • Selecting key risk areas Feedback • 5. Evaluation • Improving the process • Organizational learning • Performance reporting Understanding Context • 2. Risk Assessment • Impact and likelihood • Risk ranking • Risk tolerance • Communications strategy • Gender considerations • Stakeholder consultation • Accountabilities • 4. Monitoring • Decision-making • Adjusting • Performance reporting • 3. Risk Response • Determining options • Mitigation options • Implementing Risk Management Process

43. Op1: Human resources • Op2: Performance mgt • Op3: Information systems Operational Risks • Fin1: Funding • Fin2: Fiduciary • Fin3: Instrument Financial Risks • Dev1: Strategic • Dev2: Socio-political • Dev3: Inst capacity • Dev4: Modality • Dev5: Disasters, Environment, disease Development Risks Reputation / Public Confidence CIDA’s Key Risk Areas

44. Typical Risk Matrix

45. Risk Register Purpose of the Risk Register: A risk register lists all the identified risks, the results of their analysis and a summary of risk response strategies. The risk register should be continuously updated and reviewed over a regular reporting schedule for the length of the project.

46. Elements of a Risk Register • Risk definition • Initial level of risk • Risk levels through the project life cycle • Risk response strategies • Risk owner

47. Example For Program level only

48. 1