Results Matter December 2007
Integrated Results-Based Management in Malaysia
By Koshy Thomas, Deputy Undersecretary, Ministry of Finance, Malaysia
Malaysia’s integrated results-based management (IRBM) system was developed
in the late 1990s. Its primary components are a results-based budgeting system
(RBB) and a results- based personnel performance system (PPS). These are complemented
by two other components: a results-based management information system (MIS)
and a results-based monitoring and evaluation framework (M&E).
Integrated Results-Based Management
The primary components under IRBM provide the necessary framework for planning,
implementing, monitoring and reporting on organizational performance, and linking
organizational performance to personnel performance. The complementary components,
M&E and MIS, provide the entire framework with a dynamic dimension. They
bring to life static information by establishing some level of causality.
IRBM is now being implemented in a number of countries, such as Afghanistan,
Botswana , India, Malaysia, Mauritius, Namibia, and Zimbabwe. In some of these
countries, the four components are being implemented in stages, with RBB and
M&E as the forerunners, followed by the other components.
Malaysia’s Experiences
In Malaysia, RBB is the main driver of IRBM. At the activity level, a performance
agreement is prepared and submitted by the activity manager to the controlling
officer, who in turn aggregates all the performance agreements and submits them
to the Central Budget Office. The Ministry of Finance, by way of an administrative
circular, mandates the process. RBB requires considerable strategic inputs and
needs assessment before goals and objectives are set for each program and project.
The inputs in the document have to be driven by management, with department
heads being the main stakeholders in the proposed results. The budgeting system
must not only have strong linkages between resource utilization, outputs completion
and ensuing program results, but must also be strongly linked with the policy
framework.
Personnel Performance System and Results Based Budgeting
The PPS has also been identified a major components in Malaysia’s IRBM.
The role of the PPS is important in establishing and mandating the RBM accountability
framework. Since clear lines of accountability are established, linkages between
organizational performance and personnel performance can also be set. The appraisal
system under the PPS gives weight to the individual’s performance as well
as other attributes. As a result of this inherent linkage, human resource development
becomes more specific and focused.
Management Information Systems and Monitoring and Evaluation
When linkages within the performance framework are driven by MIS and M&E,
the IRBM system becomes more dynamic. These two components provide the performance
measurement dimension to the strategic planning framework by way of accurate,
reliable and timely information geared towards decision-making. MIS and M&E
are closely knit, and constantly draw on each other to ensure that the system
produces the right information for the right people at the right time.
All of this means that indicators should be both operational and results-based.
Indicators are important to the extent that they provide information on whether
a program has brought about change, negative or positive, intended or unintended,
to clients and stakeholders.
Going Online
To make IRBM more practical and manageable, an e-version of the integrated performance
management framework has been developed and is now being used in Malaysia.
This integrated e-enabled application solution has proven to be extremely useful
for program performance planning, monitoring, and performance reporting. It
has also proven to be of immense use for program evaluation purposes.
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