2013-2017_-_Private_Sector_Development_Strategy

Implementing the Strategy 03
Many good strategies do not achieve the intended results due
to inadequate attention to implementation. Although a Bankwide
mandate, private sector development has at times been
seen as the exclusive preserve of a few departments within
the organization. Implementation of this strategy will therefore
require a mindset shift that will mainstream private sector
development issues throughout the institution. (Annex III). In
this regard, Bank Management will pay particular attention to
a number of leadership, ownership, and partnership issues.
Likewise, Management will pay special attention to monitoring
and evaluating the Strategy.
3.1 Leadership
The Strategy has broad implications that will affect the
operations of the Bank Group as a whole, not simply private
sector operations. Work is underway to explore institutional
options to more effectively deliver on the strategic thrust of
the PSD agenda. Management recognizes that there might
be need for fine-tuning the organizational and incentive
structure. Senior management will lead this process by
ensuring adequate staffing and resourcing of the Bank’s
Operational units, particularly Field Offices. Several specific
actions in this regard, will include:
• Fine-tuning the organizational and incentive
structure. A challenge for the Bank’s structure is the
absence of a dedicated department that oversees the
overall PSD agenda. This has meant that the agenda
is fragmented across the Bank without centralized
and permanent accountability. A high-level Private
Sector Development Steering Committee (PSDSC) will
be set up to ensure effective implementation of the
Strategy. Its very creation signals that private sector
development is more than private sector operations and
hence, supersedes the organizational responsibility of
a single complex. The PSDSC will play a key role in
transforming the organization, whose activities have
been dominated by public sector interventions, to
one increasingly focused on seeking private sector
solutions and promoting public-private partnerships.
As part of its mandate, the PSDSC will:
i. Ensure that the Strategy is translated into a
consolidated, results-focused organizational
business plan, with a clear timeline that matches
Bank activities for implementation of the Strategy;
ii. Provide guidance to harmonize other strategy and
policy documents that might impact the effective
implementation of this Strategy; and oversee the
effective implementation of recommendations from
various OPEV evaluations affecting the Bank’s PSD
and NSO agendas (Box 3);
iii. Ensure that the overarching goal of private sector
development is inculcated into the Bank’s culture, its
KPIs and incentive structure agreeing on commonly
defined targets, development outcomes, and striving for
optimal contributions from each unit across the Bank;
iv. Consolidate and update the Bank’s policy framework
for NSO, including (a) greater coherence between
the Bank’s Risk Management Framework and its
strategic objective of supporting more NSOs in low
income countries; and (b) ensuring that NSOs are
not merely opportunistic, but are part of CSP and
RISP programming, particularly by strengthening
the PSD and NSO orientation of CSPs and RISPS
as mentioned in Section 3.2;
v. Fine-tune Bank’s business processes as related
(but not limited) to its PSD agenda, to strengthen
their effectiveness and value for money, as well as
have oversight over resource and quality assurance
in all PSD-related work; and
vi. Develop plans to effectively communicate the
Strategy both within and outside the Bank.
• Consolidate the Bank’s work on the financial sector.
In light of the importance of the financial sector in
both the Bank’s overall Strategy for 2013 – 2022 as
well as in this Strategy, the Bank is undertaking a
comprehensive review of its approach to the financial
sector, which will lead to the preparation of a new
Financial Sector Development Policy and Strategy to
replace the 2003 Financial Sector Policy. The PSDC
will play a crucial role in guiding this process. In this
regard, the President has constituted a working group
chaired by the Chief Economist and Vice President, with
high-level representation from several Complexes to:
i. Re-express the operational priorities for financial sector
Private Sector Development Strategy, 2013-2017
21