Institutional Reform and Incentive Mechanisms Capacity Development Strategies Mini-Retreat Istanbul August 2008

From a capacity assessment to institutional change Usual findings.. No resources..Not enough human resources; need trips + scholarships..No equipment and vehicles; no computers..No financial management capacities =>A need to look at the issues a little more systematically Institutional arrangements set up for most efficient and effective delivery on mandate

The Framework of Institutional Change Stage1. Diagnosing & Assessing Institutional Framework & Capacities Capacity Assessmen ts & Scopings Apply Distinctions Assess Winners & Losers Report on early successes as well as on the longer-term impact of the change intervention Assess Political Implications Technical, Functional, Core Issues Policy & Systems Cultural Hierarchy Issues Collectivism Stage 2. Creating the Momentum Find Champions Country Offices Donor Partners Governments Seek Coalitions Find like-minded agencies Stage 3. Executing the Change Technical, Functional, Core Issues Human Resources M&E Enhanced Coordination Functional Clarity Stakeholder Engagement Visioning Strategic Planning Leadership Incentives Policy & Systems Policy Advocacy Cultural Processes Coaching/Mentorin g Soft aspects of organisational culture Stage 4. Communicating the Change Quick Wins Long-term Strategies Comm unicate - Celebrating wins & early successes - Ways of motivating people to adopt the new behaviours, processes, & systems Illustrative Actions Scoping Missions; Capacity Assessments; RGDs with key stakeholders Illustrative Actions Identifying the challenges and priorities for improvement, setting measurable targets; Agreeing with some key agencies/individuals Illustrative Actions Instituting a unified HRM Framework; Instituting a unified M&E Framework, Instituting coordination mechanisms; Process facilitation Illustrative Actions Reinforcing progress & allow for corrections where needed, rather than envisage a linear process

Understanding why, for who and for what For Why? Leakages in institutions by dint of how they are set up and how they function Leads to efficiency gains and generate quick wins Key is diagnose the issue correctly and manage change processes in a manner that they are acceptable, are owned intrinsically, and therefore have a sustainable quality to them For Whom? Institutional Reform & Incentives Mechanisms are Sector-Neutral! These apply as much to Parliaments as they do to the Office of the Ombudsperson or the Disaster Management Agency, or the Planning Ministry in a country National Disaster Management Office (Lao PDR), General Economic Division (Bangladesh), NCED, Ministry of Planning and Finance (Sri Lanka), Centre for Ethnic Minority Affairs (Vietnam), Office of Ombudsperson (Maldives) For What? Policies, procedures & processes for objectives to be reached! Institutional Reform & incentive strategies are directed to ensure the best possible institutional arrangements are in place for smooth functioning of the State & its interactions with citizens & non-state actors Human Resource Management, Coordination Arrangements; Functional clarity & Role Division; M&E Frameworks; Incentives

Distinctions….3 main areas for IRI Issues at capacity-policy nexus – What can be changed at pilot level but has definite policy reform overtones Issues at unit level – What can be changed at the level of individual organisation Issues of incentives – Cuts across both levels and applies to organisations as well as individuals The cultural dimension is context specific

Some illustrative actions at capacity-policy nexus  Are organisations clear about their functions? And overlaps with others? Facilitation of a functional review to determine the responsibilities of different units of government and within public institutions and to map how they interact 1. Is there a common human resource management system that guides all personnel matters? Creation of a comprehensive human resource management system to include recruitment (job descriptions), incentives, skill enhancement, attitudinal change, deployment & transfers (retention of capacity) and performance criteria: HR focal points  How does it relate to overall civil service reform? How are recruitment criteria are set, Remuneration packages, design of systems of assessment of training needs and how these needs are met etc. 2. Are there coordination mechanisms that guide intra-government relationships? Improved coordination arrangements such as setting up standing sector working groups for coordination on technical issues 3. Are there comprehensive M&E frameworks that exist across government? unified M& E framework for all of government linked to unified data sets 4. Other tests like is there a comprehensive SD system that recognises PPPs or CSOs as deliverers of services? What frameworks exist to guide these? 5. Does independent monitoring happen? Is it allowed?

Illustrative actions at unit level Matching demand of training/skill building to various sources of supply bearing cost-benefit in mind Leadership capacities Implementation capacities e.g. procurement; financial management; programme management Capacities for information management and analysis Changing business processes in organisations to include regular interactions with primary stakeholders

Illustrative actions - Incentives Creation of a monetary and non-monetary incentive systems that promote a results-based management culture: Individual – Awards and recognition; – salary supplementations; – work quality improvement measures Organisational performance based budgetary allocations; Organisational recognition

Some examples National Disaster Management Office in Laos Aceh Government Transformation Programme Bangladesh Planning Commission Sri Lanka CD for Local Development Management Indonesia CD for Local development Management Philippines: Non-monetary Incentives Maldives: Civil Services Commission

Platforms Approach to Change Platforms Approach: AGTP Approach to Capacity Strengthen

Open floor Are indicative actions clearly understood? Experiences – What works – What doesn’t Do we know enough? What needs more R&D? With who?