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CHAPTER 6 CONCLUSIONS AND RECOMMENDATIONS underlying incentives, operational processes, or structural constraints that have impeded the matrix system. 6.10 The general IEG recommendation is to make substantial interrelated changes in the matrix system to realize its potential and reduce its downside. The objectives of the system cannot be achieved by further tinkering at the margins or cosmetic relabeling, but instead requires major adjustments to remove unnecessary constraints to its implementation and the establishment of the clear rules and incentives required by its logic. The Bank-wide matrix—between the network anchors and the Regions—has become increasingly weak and needs substantial strengthening, with some rebalancing needed within the Regions. In order to do so, the responsibilities and accountabilities of sector directors and managers also need to be adjusted to ensure a balance between corporate sector responsibilities and regional needs. And the unfinished task of designing incentives and operational processes that support operational needs must be addressed urgently. 6.11 The overarching theme of the adjustments recommended by IEG is to restore the creative tensions among the Regions and networks and revitalize the corporate citizenship of its staff, while allowing operational flexibility and remaining responsive to external demands for Bank global leadership and support to the development challenges faced by its external clients. The main adjustments are described below. Recommendations 6.12 The findings of this evaluation point to separate actions on incentives, processes, and structures. These are described generally below; specific recommendations are identified in the Management Action Record on page xxxiii of this report. INCENTIVES 6.13 Institutional incentives: Under guidance of the Knowledge and Learning Council, the Bank should strengthen the incentive system for effective sharing and use of internal and external knowledge across the Bank, ensuring resources to enable documentation and sharing of key lessons from country experience; financing of thematic groups and communities of practice for capture and sharing of knowledge; providing opportunities and incentives for field-based staff to access knowledge, including through sector weeks, webinars, training, short secondments, and cross-country work; developing and implementing monitoring systems to track 107
CHAPTER 6 CONCLUSIONS AND RECOMMENDATIONS use of knowledge from relevant operations and AAA from other regions, and from DEC; and assessing AAA effectiveness and monitoring its use by clients. 6.14 Staff incentives: Management should revamp the system of formal incentives for individuals to ensure that middle and senior management and staff are assessed on performance, including (a) on sharing of knowledge and collaboration across sectors, and (b) the quality and results of operations for which they are responsible; and reward performance that goes beyond Board approval for lending operations, while being more transparent and better linking career advancement decisions to quality and achievement of development objectives. PROCESSES 6.15 Redefine the purpose and frequency of SSPs as a more modest five-yearly report on the “state-of-the-sector” and provide independent funding for strategic ESW and business development. Sector reports should communicate emerging good practice and operational experience in different country contexts to staff and external partners. To ensure that country strategies are responsive to medium-term sector priorities, funding for strategic ESW and business development by regional sector units should be independent of CMU budgets and WPAs (either from a more substantial pool with the chief economist, or at the sector department level). 6.16 Quality: Strengthen mechanisms for review of quality and establish a quality assurance system independent of line management. The focus on quality should be enhanced by (a) strengthening the peer review process and QERs for technical quality, (b) ensuring dual accountability of country and sector directors for quality, and (c) establishing a quality assurance mechanism for feedback on quality independent of line management. 6.17 Budget: To remove constraints on cross sector and cross Region collaboration, management should eliminate cross support penalties and introduce flexibility in budgetary rules to allow sharing of tasks and budgets across organizational units. STRUCTURE 6.18 Bank-wide matrix: To enhance matrix effectiveness, strengthen the links among the Regions and between the Regions and anchors, and restructure Sector Boards making sector directors accountable for Bank-wide linkages and sector governance. This would need to address: fragmentation of sectors by reconfiguring Sector Boards to regroup those with related or overlapping mandates under the same networks; the range of responsibilities, particularly in SDN, by adjusting 108
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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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CHAPTER 3 THE PROMISE OF A KNOWLEDG
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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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