Catalog

	Table of Contents
p. 4 of 26 BACK | NEXT I. Introduction II. Changes in Development Environment and Agenda III. Themes for Organizational Effectiveness IV. Objective and Principles of Organizational Change V. Analysis of Options VI. Main Features of Organizational Change VII. Complementary Changes VIII. Challenges and Responses IX. Budget Implications and Implementation Plan X. Conclusions XI. Recommendations

Reorganization of the Asian Development Bank

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IV. Objective and Principles of Organizational Change

26. The overall objective of organizational change is to enhance ADB’s development impact by strengthening its capacity to deliver its strategic agenda through a carefully planned, selective, country-focused, and technically excellent program of assistance to its DMCs and subregions. Drawing on the discussion in chapter III, a number of principles have been developed to guide the analysis of options to meet this objective.

1. Mainstream Governance and Capacity Building, Environmental and Social Development, and Private Sector Development. Operational departments should be responsible for addressing and delivering products for meeting these objectives—a process often known as “mainstreaming.” Delivery of products and services in these areas should be organizationally separated from policy development and compliance oversight.

2. Balance Country and Sector Considerations. Country considerations and priorities should drive sector and project decisions. However, measures are also needed to ensure that sectoral expertise is preserved. The functional responsibilities of sector units should be realigned with ADB’s current strategic priorities.

3. Strengthen ADB’s Regional Role and Identity. The country and sector focus should also support ADB’s regional role. The organization structure should institutionalize the regional role of ADB and facilitate linkage with regional institutions.

4. Greater Client and Stakeholder Orientation. Whatever organization structure is adopted, ADB should become a more outward-looking, client focused, and collaborative development partner.

5. Maintain Technical Excellence and Skills. Maintenance of technical excellence is essential for effective project design and delivery.

6. Emphasize Effectiveness and Efficiency. Development impact depends on the efficiency and effectiveness of assistance. ADB justifiably takes pride in being the most “efficient” of the MDBs. It is also important to find means to enhance effectiveness through structural changes that emphasize implementation and outputs that can be monitored for their impact.

7. Maintain Checks and Balances Consistent with Effectiveness. Every organization needs a clear set of checks and balances to ensure compliance with its policies and procedures; maintain the quality of its output, and reduce the impact of conflicts of interest. However, such checks and balances should not stifle initiative or reduce the effectiveness of delivery of services to DMCs.

8. Clarity of responsibility and Value Addition. Each separate unit and position within an organization should be justified on the basis of the value it adds to output and should be held accountable for a unique set of results. There is great potential to streamline, increase productivity, and improve motivation by the application of the value-added principle to units, positions, and processes, all of which finally contribute to overall organizational effectiveness. Duplication of responsibility should be avoided.

9. Ownership of Change. Organizational change must have the backing and ownership of the staff affected by it, so that staff morale is maintained and the changes can be smoothly and successfully implemented.

10. Continuity in Change. Changes should be made only where they add value to the organization, and should be implemented in ways that minimize disruptions to operations and in services to clients, maintain continuity of approach, and preserve institutional memory.

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