The Matrix System at Work - Independent Evaluation Group - World ...

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CHAPTER 5 INSTITUTIONAL ISSUES AND ORGANIZATIONAL STRUCTURE The anchor can only facilitate participation in network activities if the parties are free and interested in contributing. Time, more than incentives, is the main constraint.” The current model of one sector manager per sector or group of sectors in each region is unsustainable. 5.20 Span of control issues are most acute in Africa and SDN. Among the Regions, the span of control challenge is most acute in Africa at 54 staff per sector manager, compared to the Middle East and North Africa, which has the smallest span at 23 staff per manager, even this being much higher than any of the comparator organizations. Among the networks, SDN has an average of 42 while the remaining networks range from 30-35 staff per regional sector manager; including the network anchor, SDN has 47 staff per sector manager. These network averages mask significant variations with 15 sector units having more than 50 technical staff as direct reports, the highest being 90. To cope with this, many units are functioning with shadow managers who have been delegated tasks but are not always paid 66 or officially acknowledged as managers. Other units are relying on alternative models that have moved away from the notion of one sector manager per Region for each sector. In Africa, PREM has three geographic sector managers covering several sectors and one for public sector governance region-wide. In East Asia and the Pacific, SDN has decentralized sector managers to country offices, but they cover all the SDN sectors for individual country groupings. In both cases the regional structure meets specific regional and network needs but assumes minimal contribution by operational sector managers to their Sector Boards. The two headquarters-based sector managers who represent the Region on all eight of the Sector Boards in East Asia and the Pacific have no operational role. The reliance on shadow managers and country sector leaders or coordinators, particularly in Africa and SDN, puts additional stress on its ability to deliver quality services. SPAN OF CONTROL OF SECTOR DIRECTORS 5.21 Span of control is also an issue for sector directors, especially in SDN. SDN directors have the heaviest burden in terms of staff per sector director. The average number of regional staff under sector directors ranges from 41 in FPD to 258 for SDN, with PREM and HDN having slightly more than 100. Even adjusting for the fact that FPD has moved to a model of dual directors, each overseeing one Region and one Practice Group, the total number of staff per FPD director is 93, while the average for SDN, including anchor directors and staff, is 210. The excessive burden on SDN sector directors is a consequence of the merger of two vice presidencies with eight Sector Boards between them. The merger did not just increase the number of staff under each sector director, it also vastly increased the substantive scope of work to eight sectors. Since sector directors cannot have technical competence in 89
CHAPTER 5 INSTITUTIONAL ISSUES AND ORGANIZATIONAL STRUCTURE every one of their sectors, and sector managers who have the specific technical competence are too overburdened, there is neither an adequate mechanism for technical oversight nor accountability for quality (also see chapter four). These findings suggest that at least for the sectors currently under SDN, the span of control of sector directors is also an issue. The Effects of the SDN Merger on the Matrix System 5.22 Subsequent changes added stress to the matrix design. The rigidity in Sector Board structures proved to be an impediment to the flexibility needed to address issues arising out of emerging operational priorities and subsequent organizational restructuring adding to the stress arising from inadequate knowledge flows and accountability for quality. In 2006, the two smallest sectors—Financial Sector and Private Sector Development networks—were merged into the FPD network, and the two largest—ESSD and Infrastructure networks were merged into the SDN network 5.23 The FPD network recognized the constraints on knowledge flows and quality and was restructured at the end of FY 11 (Box 5.1). The two Sector Boards have been replaced by 6 Global Technical Practices designed to address these issues. While it is too soon to evaluate the effects of the reorganization, or to assess its replicability across networks, FPD’s efforts to recognize and confront these issues are to be commended. 5.24 BANK-WIDE LEVEL 5.25 The creation of SDN has considerably exacerbated the organizational challenges facing the Bank under the matrix system. At the Bank-wide level, the benefits of the merger are mixed. Infrastructure lending has increased, but accountability for quality has not. Regardless of the significant increase in infrastructure lending—which started after the Infrastructure Action Plan in 2003, even before the SDN merger—from the perspective of organizational effectiveness and quality assurance in country operations, the SDN merger has been suboptimal. 5.26 The decision to merge the ESSD and INF networks was motivated in part to integrate environmental concerns within infrastructure sectors, which generate the highest environmental impacts. There is some evidence from the work on climate change that this has had positive effects although it is still too soon to evaluate outcomes on the ground. However, this rationale for merging environment does not extend to the agriculture sector. Nor was there clarity initially on the benefits of 90
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The Matrix System at Work An Evalua
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©2012 Independent Evaluation Group
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Costs of Country and Sector Strateg
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Table 3.6. Total Cross-Support Sold
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Abbreviations AAA AFR ARDE ARPP BET
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Glossary Term Anchor sector directo
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GLOSSARY Practice managers (PM) Reg
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Overview The Matrix System at Work
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OVERVIEW rather than on the 1997 ma
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OVERVIEW satisfactory or better in
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OVERVIEW toward capacity building a
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OVERVIEW Innovation in the field is
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OVERVIEW Figure D. Outcomes of Bank
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OVERVIEW modernization in the corpo
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OVERVIEW management structure but t
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OVERVIEW Structure Bank-wide matrix
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MANAGEMENT RESPONSE interest and ow
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MANAGEMENT RESPONSE Management cons
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MANAGEMENT RESPONSE that reach far
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CHAPTER 1 INTRODUCTION AND CONTEXT
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2. The Strategic Alignment of Secto
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CHAPTER 2 THE STRATEGIC ALIGNMENT O
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APPENDIX D EXPERIENCE IN THE TRENCH
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Appendix E Key Findings from Sector
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APPENDIX E KEY FINDINGS FROM SECTOR
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Table E.1. Country Directors and Ma
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# Other Questions Q # 7 APPENDIX E
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APPENDIX F FOCUS GROUP DISCUSSIONS:
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APPENDIX F FOCUS GROUP DISCUSSIONS:
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Appendix G Comparison of the Six Re
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APPENDIX G PROFILES OF THE BANK’S
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Appendix H Working across Organizat
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APPENDIX H WORKING ACROSS ORGANIZAT
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Appendix I Budgetary Incentives 65.
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APPENDIX I BUDGETARY INCENTIVES Bud
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APPENDIX I BUDGETARY INCENTIVES 72.
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APPENDIX I BUDGETARY INCENTIVES com
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APPENDIX I BUDGETARY INCENTIVES Fig
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APPENDIX I BUDGETARY INCENTIVES mea
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APPENDIX J WORKING ACROSS SECTORS A
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Appendix K World Bank Sector Strate
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APPENDIX K WORLD BANK SECTOR STRATE
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APPENDIX K WORLD BANK SECTOR STRATE
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Appendix L International Finance Co
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APPENDIX L IFC 2013 CHANGE INITIATI
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APPENDIX M STAFFING DATA Note: Head
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APPENDIX M STAFFING DATA Table M.7.
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Appendix N Managers Interviewed Nam
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References Barnett, Michael N. and
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REFERENCES Sy, Thomas and Laura Sue
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Endnotes 1 See Wapenhans 1992, 1994
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ENDNOTES appropriately assessed by
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ENDNOTES 46 The respondents to this
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ENDNOTES 71 See Safeguards and Sust
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