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

CHAPTER 5
INSTITUTIONAL ISSUES AND ORGANIZATIONAL STRUCTURE
Key Findings and Conclusions
5.57 Imbalance in the regional matrix. At first glance it appears that one of the
two objectives of the Bank’s matrix system—enhancing client responsiveness—has
been achieved but that the sector side of the matrix did not succeed in creating
global technical practices with world-class knowledge systems, delivering quality
services. The very strength of the country units created an imbalance in the regional
matrices. The imbalanced relationship between country and sector units created
suboptimal tensions giving priority to short-term client demands over longer-term
strategic needs. This is reflected in the weaker results on realism, broader country
ownership, and implementation in country programs.
5.58 Imbalances also exist in the Bank-wide matrix. The very strength of the
regional matrices weakened the networks and consequently the Bank-wide matrix.
The design of Sector Boards appears to have been resulted in the overburdening of
regional sector managers, who have little incentive, time, or resources to perform the
multifarious corporate roles expected of them. A more realistic sharing of
responsibilities and accountabilities between the sector directors and sector
managers might have enabled a more realistic design of the sector units. Further, the
sector anchors took on additional corporate and global tasks that diverted attention
from their ability to support frontline operations in the Regions.
5.59 Subsequent changes added stress to the matrix design. The matrix system
has not been able to adapt to issues arising out of span of control or subsequent
organizational restructuring. The merger of SDN forced the Regions to adopt
second-best or, in some instances, third-best solutions that varied across the Regions.
The broadening of the sector scope of responsibility overburdened sector units
limiting their ability to ensure knowledge flows and quality services. And the checks
and balances created by the existence of a quality assurance system, independent of
line management, disappeared.
5.60 Finally, the matrix system also suffered from the absence of a shared set of
organizational objectives with clearly identified indicators to monitor progress. At
the end of FY11, management introduced a Corporate Scorecard to track results. A
complete assessment of the scorecard is beyond the scope of this evaluation. The
viability of the instrument will depend on the realism and transparency of the
indicators and the alignment between the indicators of organizational effectiveness
and modernization (Tier 4 of the Corporate Scorecard), the Bank’s development
effectiveness, and country results supported by the Bank.
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