98. Chapter III identified the major challenges faced by ADB, Chapter IV the principles of change, and Chapters VI and VII have identified the proposed organizational and complementary responses. It is important to assess how effective and comprehensive the responses are. This is summarized in the table below, which also presents an overview of the main features of change.
| Issues |
Responses |
|---|
| A. Manage multiple goals |
- New structure to realign operational units to better achieve ADB’s vision and strategy
- Establish a Management Committee to ensure strategic direction and coordination
|
| B. Balance country and sector consideration |
- Create regional departments to enhance country focus by combining ‘projects’ and ‘programs’ functions to take an integrated view of country operations
- Create sector divisions to maintain critical mass of sectoral expertise, and RSDD to enhance technical excellence
- Rationalize reporting line between RMs and HQ
- Establish country teams of staff working on a country to prepare CSPs
|
| C. Greater client and stakeholder orientation |
Fewer countries under each region permits better country focus and closer staff interaction. Regional Management team of Director/Deputy Director/ Managers/RRs enables full attention to DMCs and integrated response |
| D. Mainstream governance, capacity building, environmental and social development, and private sector development |
- Sector divisions reconstituted to be better aligned with strategic agenda
- All delivery of products in these areas to be handled by sector divisions, not by advisory units
- Regional departments to mainstream two major elements of the PSD strategy, i.e. creating enabling conditions and generating business opportunities
- PSG upgraded to PSOD with full time Director, in charge of catalyzing private investments. PSOD shares responsibility for implementing the PSD strategy
|
| E. Maintain technical excellence and skills |
- Create a new RSDD to enhance the quality of ADB’s operations, promote technical excellence within ADB, and strengthen ADB’s thematic and sector work
- Creation of internal networks along thematic and sectoral lines to disseminate and promote best practices
- 5-region model permits sufficient ‘critical mass’ in sector divisions
- Assignment of environmental and social dimensions specialists in the divisions of the regional departments to be members of country and project teams, enhancing knowledge of crosscutting concerns and safeguard policies in operations units
|
| F. Maintain checks and balances consistent with effectiveness |
- Separation of quality/compliance functions from operations
- RSDD to review independently ADB products, and provide the originating department as well as Management with written advice on the quality of design and adherence to policies
- RSDD’s new Environment and Social Safeguard Division specifically mandated to ensure compliance with safeguard policies
- Quality control will be built into the business practices being reviewed by a Working Group on Business Process Change
|
| G. Emphasize effectiveness and efficiency |
- Clearer accountability for delivery of programs
- Combined ‘programs’ and ‘projects’ functions at departmental level will lower internal transaction costs
- Better country coordination between RMs and sector divisions in HQ
- Rationalize staffing through redeployment
- Review of business processes being undertaken to improve efficiency
|
| H. Promote a strategic regional focus, strengthen ADB’s regional role and identity |
- RSDD to concentrate specifically on strengthening ADB’s regional focus, regional cooperation strategy and work plans, linkages with other regional institutions
- Sub-regional cooperation is part of regular work programs of regional departments
|
| I. ADB as a resource and knowledge center |
- Combine all knowledge and policy departments under the President for synergy and coordination
- New Knowledge Management Committee chaired by the President whose membership will include ADBI, ERD, RSDD, REMU, SPD and OER to coordinate and oversee ADB’s program on development and delivery of knowledge products
- Clear role of coordination and accountabilities for the development and delivery of major types of knowledge products, i.e. ERD for economic area, and RSDD for sector and thematic areas
|
| J. Partnerships |
- SPD will continue to be responsible for managing interagency relationships at the institutional level, such as MOUs
- RSDD will be responsible for regional cooperation with other development partners on thematic and sectoral issues, through external networks
- NGO center in RSDD will continue to serve as focal point to further develop the existing NGO Cooperation Network
|
| K. Public profile and information |
- OER to report directly to the President and to lead all external relations activities with close coordination with five regional departments in publicizing ADB’s activities in the DMCs
- OER to be a member of the Knowledge Management Committee
- ROs to report to SPD and to become more proactive in providing information to and liaising with stakeholders in developed country members on ADB’s strategies, policies, ongoing and forward program of operations
|
| L. Risk management |
ADB’s risk management structure will be considered upon completion of an ongoing study on country credit risk |
| M. Each organizational unit should have clear responsibility and add unique value |
- Reduced ‘overlap’ through combination of ‘projects’ and ‘programs’ in one department
- Clear demarcation between operations and advisory functions
- Accountability strengthened by making heads of regional departments responsible for all ADB work in their region
|
| N. Ownership of and continuity in change |
- Changes proposed only where necessary
- Regional groupings broadly maintained for preserving institutional memory and minimizing disruption
- Staff consultations through focal groups, presentations, briefings by Heads of Departments
|
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