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

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OVERVIEW<br />

<strong>The</strong> rel<strong>at</strong>ionship between country and sector<br />

units also needs to be rebalanced to ensure<br />

th<strong>at</strong> the country-focused model is<br />

complemented by appropri<strong>at</strong>e <strong>at</strong>tention to<br />

regional and global priorities. And incentives<br />

for delivering quality services and results need<br />

to be strengthened.<br />

Management has recently introduced a series<br />

of steps to tackle many of these organiz<strong>at</strong>ional<br />

constraints under the <strong>M<strong>at</strong>rix</strong> Leadership Team<br />

and the Knowledge and Learning Council. A<br />

Managing Director has been tasked with<br />

providing leadership for the moderniz<strong>at</strong>ion<br />

agenda and several initi<strong>at</strong>ives are underway.<br />

<strong>The</strong> empirical evidence in this evalu<strong>at</strong>ion is<br />

relevant for th<strong>at</strong> decision-making process to<br />

identify additional actions needed to achieve<br />

the Bank’s str<strong>at</strong>egic objectives. <strong>The</strong> unfinished<br />

task of designing incentives and oper<strong>at</strong>ional<br />

processes th<strong>at</strong> support oper<strong>at</strong>ional needs must<br />

be addressed urgently. <strong>The</strong> main adjustments<br />

proposed by IEG are described below.<br />

Incentives<br />

Institutional incentives: Under guidance<br />

of the Knowledge and Learning Council,<br />

the Bank should enhance the incentives<br />

and resources for effective sharing and use<br />

of internal and external knowledge across<br />

the Bank. Develop and implement an<br />

integr<strong>at</strong>ed approach to enhance resources and<br />

incentives for document<strong>at</strong>ion and sharing of<br />

key lessons from country experience,<br />

including through them<strong>at</strong>ic groups, and for<br />

field-based staff to access and share<br />

knowledge. Develop and implement<br />

monitoring systems to track use of knowledge<br />

from relevant oper<strong>at</strong>ions and AAA from<br />

other Regions, and from DEC, to assess AAA<br />

effectiveness and monitor its use by clients.<br />

Staff incentives: Management should<br />

revisit the performance management<br />

system to transparently reflect<br />

performance th<strong>at</strong> goes beyond traditional<br />

deliverables by ensuring th<strong>at</strong> staff are<br />

recognized for (a) sharing of knowledge<br />

and collabor<strong>at</strong>ion across sectors, and (b)<br />

the quality and results of oper<strong>at</strong>ions for<br />

which they are responsible.<br />

Processes<br />

Redefine the purpose, process, and<br />

frequency of sector str<strong>at</strong>egy papers as a<br />

more modest five-yearly report on the<br />

“st<strong>at</strong>e-of-the-sector” and provide adequ<strong>at</strong>e<br />

resources for str<strong>at</strong>egic ESW and business<br />

development. Reflect in sector reports<br />

emerging good practice and oper<strong>at</strong>ional<br />

experience in different country contexts to<br />

staff and external partners. Building on the<br />

experience of the L<strong>at</strong>in America and<br />

Caribbean Region, provide centralized<br />

funding within regional vice presidencies for<br />

str<strong>at</strong>egic ESW, business development, and<br />

global and regional public goods independent<br />

of CMU budgets and work program<br />

agreements (either from a more substantial<br />

pool with the chief economist, or <strong>at</strong> sector<br />

department level).<br />

Quality: Strengthen mechanisms to<br />

enhance the focus on quality by (a)<br />

strengthening the peer review process, quality<br />

enhancement reviews, and mid-term reviews<br />

for quality through enhanced collabor<strong>at</strong>ion<br />

between Regions and sector anchors; (b)<br />

ensuring dual accountability of country and<br />

sector directors for quality; (c) strengthening<br />

quality assurance mechanisms for non-lending<br />

technical assistance; and (d) establishing a<br />

quality assurance mechanism for feedback on<br />

quality, independent of line management.<br />

Budget: To encourage cross sector and<br />

cross-regional collabor<strong>at</strong>ion, management<br />

should streamline and simplify the cross<br />

support budget settlement process and<br />

introduce flexibility in budgetary rules to<br />

allow sharing of tasks and budgets across<br />

organiz<strong>at</strong>ional units.<br />

xxx

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