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

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OVERVIEW Structure Bank-wide matrix: Management should, by the end of 2012, develop and initiate implementation of a plan to enhance matrix effectiveness, address the existing constraints in the sector and network architecture, and strengthen the links among the Regions and between the Regions and anchors. This would need to address: fragmentation of sectors by regrouping Sector Boards with overlapping mandates under the same networks; excessive burden on sector managers by shifting greater responsibility and accountability for sector governance toward sector directors; inadequate accountability of sector directors/managers to the networks by strengthening incentives and the dual reporting system of sector directors/managers to both networks and Regions; and the inadequate role of sector/network anchors in supporting and ensuring quality of regional operations. Regional matrix: Rebalance the relationship between country and sector units and regional functions to ensure appropriate attention to lending, knowledge, and quality. This would need to address: the span of control of regional sector managers by reducing the number of staff per sector manager, learning from the experience of comparator organizations, and recognizing actual costs of shadow managers; and the decline in regional sector unit budget shares by enhancing resources for frontline services. Network rebalancing: Address key organizational constraints in the Sustainable Development Network. This includes: (a) excessive span of control of SDN sector managers; (b) dissimilarity in structures across the Regions; (c) unrealistic range of sector responsibilities of sector directors and country sector leaders/coordinators; and (d) removing the separation between safeguards and non-safeguards work by paying equal attention to both aspects of environmental and social sustainability. xxxi
Management Response Management welcomes the opportunity to engage with the Independent Evaluation Group (IEG) around management’s on-going modernization efforts, especially those concerning the reform and strengthening of the Bank’s matrix structure. The IEG review of the matrix concludes that the matrix system may be even more relevant today than when it was created in 1997. This conclusion reflects changes over the last 15 years, including the diversification of client needs, increased differentiation among countries and within Regions, the increasing role of global public goods (GPGs) and corporate priorities, and increasing demand for knowledge and cutting-edge mechanisms for transmitting knowledge. Management agrees with this conclusion and supports the general assertion that despite the effectiveness of the matrix system in improving country-level results, the matrix needs to be further strengthened to be even more effective in supporting the Bank’s clients. The IEG review of the matrix addresses challenges that were surfaced and analyzed extensively by management in recent years. In large part, it gives rise to the ongoing work on the modernization and knowledge agendas and provides welcome additional analysis and suggestions for further reform. It is most closely related to reforms under way to improve talent management, global knowledge and staff connectivity, and manager span of control. We appreciate that IEG has recognized the broader modernization efforts in this evaluation. As management has noted on previous occasions, this evaluation appears to significantly stretch IEG’s mandate of directly assessing development effectiveness. It focuses on the organizational structure as opposed to activities with explicit direct developmental goals and outcomes. As we noted then, this kind of evaluative framework would likely lead to recommendations that cross the line between the independent evaluation function and management’s function. Many of these fall under management’s purview and are closely related to an ongoing reform program. As agreed, management will be regularly discussing progress in matrix reforms with Executive Directors through its regular business modernization updates. In this broader context, we will continue to report periodically on implementation of the evolving modernization and knowledge agendas. This Management Response covers key recommendations of the evaluation but does not repeat the detailed analysis of key issues that gave rise to the modernization agenda. 1 Strategic Alignment of Sector and Country Priorities The challenge of an effective matrix organization in an international institution is twofold. First, how can we most effectively bring corporate issues, notably GPGs, to the country level, especially when appropriate GPG economic incentives for countries are in short supply? The second is how to ensure the kinds of strategy discussions that lead to a cost-effective and selective support program—including a mix of support for a country-owned agenda and analysis and dialogue to bring objective evidence on issues identified as key for building 1 See Modernizing the World Bank Group—An Update (DC2011-0005), April 4, 2011. A further update is forthcoming in April 2012. xxxii
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CHAPTER 3 THE PROMISE OF A KNOWLEDG
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CHAPTER 4 DELIVERING QUALITY SERVIC
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CHAPTER 5 INSTITUTIONAL ISSUES AND
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6. Conclusions and Recommendations
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CHAPTER 6 CONCLUSIONS AND RECOMMEND
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CHAPTER 6 CONCLUSIONS AND RECOMMEND
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Appendix A Matrix Management and Or
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APPENDIX A MATRIX MANAGEMENT AND OR
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SECONDARY ANALYSIS OF CASCR REVIEWS
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APPENDIX B EVALUATION METHODOLOGY a
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APPENDIX C RESPONSIVENESS AND EFFEC
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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 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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