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

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CHAPTER 3 THE PROMISE OF A KNOWLEDGE BANK 3.4 The functioning of the Knowledge Bank is examined in this chapter by focusing on the capture and flow of knowledge. This complements the work of the Bank’s own report on the state of knowledge to examine the composition of knowledge products and the volume of expenditure on explicit knowledge products over time and includes findings from staff and managers on the supply and demand for knowledge. Knowledge flows are reviewed through an in-depth analysis of the volume and trends in cross support, as a proxy for the flow of tacit knowledge across Regions, networks, and sectors and findings on knowledge capture and dissemination. Following this assessment of the Bank’s ability to achieve these outputs we draw conclusions regarding the extent to which the related intermediate outcome—“Innovation in the field is well captured across the institution, and country operations draw efficiently on global knowledge to meet client needs”—has been achieved during FY1997-2010, the period reviewed by this evaluation. KNOWLEDGE NEEDS TO BE POOLED AND SHARED 3.5 Knowledge comes in three distinct forms—explicit knowledge, tacit knowledge, and embedded knowledge. Explicit knowledge consists of knowledge found in codified knowledge products that are produced by Bank staff, sometimes in collaboration with clients or partner organizations. Dissemination of explicit knowledge products is essential for them to be of operational use. Tacit knowledge is the stock of knowledge that Bank staff, clients, and partners gain from development experience. Of these, the most relevant to this report is the tacit knowledge among Bank staff. The principal mechanisms for transfer of tacit knowledge remain staff rotation and cross support to other organizational units, or personal networking. Embedded knowledge refers to knowledge within operational documents prepared as part of project appraisal, supervision, or assessment of lending operations. While embedded knowledge is often put to immediate operational use, and could be invaluable to similar operations elsewhere, without explicit arrangements for its capture and dissemination, this knowledge is unlikely to flow beyond an individual operation. Knowledge retrieval and transfer across the organization and externally could significantly enhance the value of the Bank’s knowledge products. The Knowledge Bank initiative, supported by the matrix and internal markets, was supposed to require a shift from an individualistic mode of working and storing knowledge toward a team-based mode (Phillips 2009: 71). 3.6 Knowledge organizations need well-developed mechanisms to capture and share knowledge. The World Bank has the advantage of being staffed by highly qualified technical experts in comparison with most of its clients in developing countries. However, before the introduction of the matrix, the Bank did not explicitly commit to sharing of knowledge across the organization. Most technical 39
CHAPTER 3 THE PROMISE OF A KNOWLEDGE BANK staffs were housed in sector divisions within 20 country departments with minimal collaboration across country departments. The 1997 reform was designed to overcome these silos by grouping technical staff into Bank-wide sector families governed by Bank-wide Sector Boards, regardless of where they were located. The Knowledge Report (2011) describes three key roles for the Bank—producer, customizer, and connector—of knowledge. This chapter focuses more on knowledge flows—that is, the Bank’s role as a connector and customizer of knowledge, rather than on the quality of knowledge produced. ASSESSING THE BANK’S KNOWLEDGE WORK 3.7 The magnitude of knowledge work in the Bank is very difficult to estimate. In FY2010, the Bank spent $606 million on “core knowledge products,” which includes knowledge for external clients, internal use, and research and data generated as a public good. Although how much the Bank spent on explicit knowledge products is known, tacit knowledge among clients and partners is inestimable. Nor has the Bank monitored the volume or quality of embedded knowledge in operational documents, except for a one-off review undertaken by the Middle East and North Africa Region, which estimated that in 2010 the Region spent about 10 percent of loan proceeds on knowledge products. Projecting from this, the Bank’s Knowledge Report estimates that knowledge spending embedded in lending was $2.5 billion (World Bank 2011: 11). However, given the wide variation in the nature of lending operations and knowledge products across the Regions, without further substantiation this estimate remains dubious. The volume of cross support across organizational units provides a proxy of the flow of tacit knowledge among Bank staff. 3.8 The ultimate purpose of the Knowledge Bank is to ensure that the Bank uses cutting-edge knowledge, internal and global, to support client needs. An effective Knowledge Bank is predicated on maintaining an appropriate body of knowledge generated internally or externally and ensuring effective flows of knowledge. For this to be achieved, knowledge needs to be strategically relevant and customized to serve client needs. Effective knowledge flows require incentives and efficient systems for capture, dissemination and use of explicit, tacit, and embedded knowledge generated by the Bank, and global knowledge to operational teams and country clients. 3.9 Bank management recognizes that the transformation into a Knowledge Bank has not yet been achieved. The 2010 management review of the matrix found that “anchors and Regions are increasingly disconnected,” “innovation in the field is not well captured across the institution,” and “not all country programs are able to draw on available knowledge.” IEG concurs with these findings. Management initiatives to address these weaknesses include targets for cross support, Global 40
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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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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 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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