Krishna Prasad Dhakal Program Director National Planning Commission Secretariat.

Krishna Prasad DhakalProgram Director

National Planning Commission Secretariat

Managing For Development Results

(MfDR)

MfDR is a management strategy that focuses on using performance information to improve decision making.

MfDR mobilizes all human, financial,

technological and natural resources –

domestic and external – to achieve

desired development results.

Managing for Development results

It shifts the focus from inputs (“how much money will I get,

how much money can I spend?”)

to measurable results (“what can I achieve with the

money?”) at all phases of the

development process.

Managing for Development Results

At the same time, MfDR focuses on providing sound information to improve decision-making.

This entails tracking progress and managing business based on solid evidence and in a way that will maximise the achievement of results.

Managing for Development results

MfDR implies that goals are clear, measurable, limited in number and concrete, with time-bound targets.

At the same time, they must be expressed in human terms (i.e. as development outcomes).

For this reason, MfDR is more than a methodology: it is a way of thinking and acting, built on a practical toolbox for improved public management.

Source- www.oecd.org/dac/effectiveness/results

Managing for Development results

Linking resources to results

Improving the effectiveness of public management

Optimum utilization of scarce resources

Demonstrating results and value for money

Aid-effectiveness

Why MfDR?

Enhances government performance and accountability through-

setting clear objectives and goals,

Evidence-based decision-making,

Transparency and

continuous adaptation and improvements

Developing performance and result culture

Why MfDR?

What is result culture?

What is not counted?

What is counted?

How many clinics have been built

Whether citizens’ health has improved

How many schools have been constructed

How many girls and boys are better educated

How many dollars were loaned to a country

Whether the country has less poverty

If you do not measure results, you cannot tell success from failure

If you cannot see success, you cannot reward it

If you cannot reward success, you are probably rewarding failure

If you cannot see success, you cannot learn from it

If you cannot recognize failure, you cannot correct it

If you can demonstrate results, you can win public support

Soucrce- world bank

Why result culture is?

MfDR concept emerged as a tool for linking outcome and output with inputs and activities thereby improving the effectiveness of resources spent.

From the realization of the need for concepts that ensure aid effectiveness (Monterrey conference on Finance and development in Mexico, 2002) to evolution of the concept, principles and practices (WB and Marrakech, Morocco Round Tables, 2004) and to sharing of country practices on MfDR in Vietnam (2007), it has attracted attention of both donors and recipients as well as the development experts around the world.

Evolution of MfDR

At the Paris High-Level Forum on Aid Effectiveness (2005), donor agencies and partner countries committed to specific

action for country ownership, harmonization, and mutual accountability for the use of aid.

Evolution of MfDR

Five Principles of MfDR

1. Focusing the dialogue on results at all phases of the development process

- Ensuring outcome and output at all phases of development process.

2. Aligning programming, monitoring, and evaluation with result

- Implementation strategies design to support outcome and output.

Five Principles of MfDR

3. Keeping measurement and reporting simple- Designing simple indicators to measure

outcome, enhance data base and practice simple formats for regular reporting.

4. Managing for, not by, results- Expected outcome and output determining

activities and inputs – reversing the conventional trend of determining outcome based on inputs.

5. Using results information for learning and decision making

Five Principles of MfDR

setting goals and agreeing on targets and strategies;

allocating the available resources to activities that will contribute to the achievement of the desired results;

monitoring and evaluating whether the resources allocated are making the intended difference;

reporting on performance to the public;

feeding back information into decision-making.

MfDR cycle

World bank (2004)

Measureable Indicators

Result matrix

Business plan

Result-based budgeting

Result-based M&E

Major Components of MfDR

A business plan is a formal statement of a set of business goals, the reasons they are believed attainable, and the plan for reaching those goals. It may also contain background information about the organization or team attempting to reach those goals.

Concept of Business Plan

Business Plan

The concept of business plan was come from private sector

Business plan is a backbone of MfDR.

Business plan is normally prepared for 3 years in rolling basis.

Business plan is to update every years because of its rolling

feature.

MfDR links macro and micro plan.

It establishes relationships between central\periodic plans and sectoral\ministerial plan and activities.

MfDR as a link Between Macro and Micro planning

Key outcomes (i.e. strategic objectives)

Performance measures and targets

Time frames and responsible agencies

Expenditure/Budget estimates

Monitoring and Evaluation mechanisms

Critical factors for successful implementation (key success factors)

Business plan provides -

A business plan will-• Clarify thematic priority areas of interventions;

• Specify Budget allocation required for achieving outcomes by driving the budgetary system toward a performance base;

• Serve as a basis for negotiation between the budgetary authority and the related organization;

A Snapshot of the Business Plan

A business plan will-• Work as a basis for developing key performance

indicators;

• Work as a basis for performance contract with the pilot organizations;

• Work as a basis for performance measures of the implementation plans;

• Help in prioritizing outcomes; and

• Help in aid harmonization and aid effectiveness.

A Snapshot of the Business Plan

Indicative Table of Contents for the Business Plan

Development Context and Background

Vision and mission, goals, mandates, objectives and priorities

Major problems, challenges and opportunities (performance gaps and readiness analysis)

Key objectives and Expected outcomes – linked to TYP

Quantitative Targets – linked to TYP but disaggregated for each of three year

Strategies and Policies - linked to TYP

Core programs to achieve the objectives and quantitative targets (review of ongoing programs and prioritization)

Indicative Table of Contents for the Business Plan

Budget Allocation (Investment plan linked to MTEF)

Institutional development – address sources of gap identified through Readiness Assessment Analysis

Monitoring and Evaluation

Critical factors for successful implementation- Risk/Assumption

Indicative Table of Contents for the Business Plan

APPENDICESAppendix I: Results Matrix ( with all the

essential components )

Appendix II: Results Based Monitoring Framework

Any other Appendices

Indicative Table of Contents for the Business Plan

Category Indicators Means of verifications

Risk and Assumption

Impact

Outcome

Outputs

Activities

Inputs

Result Framework

Nepal as LeaderThe Government of Nepal is regarded as a

leader in the implementation of managing for development results (MfDR) in the South Asia region.

It has taken concrete steps in developing some core elements of results-based management.

It has established an MfDR framework and put in place mechanisms that link planning, budgeting, project and/or program implementation, and monitoring to development results (outputs and outcomes).

RBB/MfDR in Nepal

MfDR was started in 2007 with a technical assistance of ADB.

The first project (Fiscal year 2007-2009) initiated MfDR in 3 Ministries (Education, Local Development and

Physical Planning) and 3 districts (Dang, Jumla and Jhapa).

The second project funded by ADB (from July

2009- July 2011) introduced MfDR in 2 more ministries (Agriculture and Energy) and 6 departments.

RBB/MfDR in Nepal

Now 5 Ministries and 8 Departments have prepared business plans and they are in the process of implementation.

Result-based budgeting (RBB) is already in implemented in 2 Government institutions (Department of Transport Management and Katmandu Valley Traffic Police Division.)

RBB/MfDR in Nepal

Government of Nepal is planning to continue MfDR in above-mentioned 13 government ministries and departments.

GoN will introduce MfDR in other 13 (4 ministries namely Health and Population, Forest and Soil

Conservation, Irrigation and Peace and Reconstruction and 9 more departments) government institutions.

GoN will mobilize its own resources to bring in action above-mentions activities.

RBB/MfDR in Nepal

Major steps taken in this regard are-Preparation of Periodic Plans (PRSP & TYIP),

and Long Term Vision Documents

Linking Budget Allocation to Development Priorities through MTEF and Business Plans

Establishment & Strengthening of M&E Systems (PMAS, PPIS)

Start of Results Based Monitoring (Result-based M&E guidelines 2011 is prepared by NPC for donor-funded p1 projects.)

RBB/MfDR in Nepal

Major steps taken in this regard are-

Performance-based Budget Release

Tracking of High Priority Policies

Public disclosure of the Key Information

Public Sector Reform

RBB/MfDR in Nepal

To integrate, streamline, and institutionalize MfDR framework at all levels of the Government.

To enhance institutional and individual capacity in public sectors.

Political transition

To establish and strengthen effective M&E system.

To ensure quality of service performed.

Challenges of RBB/MfDR in Nepal

We are moving forward on the way of RBB/MfDR with great enthusiasm and hope.

We do believe that the global partnership and experience sharing are equally important in this endeavor.

At last but not the least…….