Managing for Development Results at ADB

Frequently Asked Questions

• What is "Managing for Development Results" (MfDR)?
• What are the elements of MfDR?
• What are the logical phases of MfDR?
• What are the benefits of MfDR?
• Why is MfDR important for ADB?
• What are the Monterrey Statement and the Marrakech Memorandum?
• What is the Paris Declaration?
• What are some of the pitfalls commonly encountered by organizations that have adopted MfDR?
• Where can I find examples of MfDR applications at the country, sector, and project levels?
• I have other MfDR questions. Where can I find answers?

What is "Managing for Development Results" (MfDR) ?

Managing for Development Results ("MfDR") is a management approach to improve planning, monitoring and evaluation, feedback, and learning.

The MfDR approach:

• is built on clarity of goals and objectives
• provides systems for measuring and monitoring performance and results
• promotes a learning culture
• assumes beneficiary participation at all stages of the development process
• requires clear accountabilities in a decentralized framework
• links results with planning and resource allocation

Introduction of MfDR techniques at ADB is expected to move attention away from an internal activity orientation and financial inputs towards much greater focus on the achievement of development results at the country level. Ultimately, the objective is to manage better the entire project and program cycles and to ensure that expected outcomes are fully aligned with national development priorities.

See: An Introduction to Results Management

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What are the elements of MfDR?

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What are the logical phases of MfDR?

The five logical phases in MfDR include: input, activities, outputs, outcomes, and goals (impacts).

The Logical Result-Based Monitoring Model (Kusek/Rist, 2002)

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What are the benefits of MfDR?

• Greater institutional effectiveness in focusing efforts because results have to be reported upon
• Better priority setting which in turn improves funds allocation and usage, particularly when funds are severely constrained
• Improved customer orientation as their satisfaction will often be a performance indicator
• More consultation and participatory interaction with those customers who use outputs
• Acceptance of accountability for performance
• Objective capacity to demonstrate “value” to public, ministers, government and critics

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Why is MfDR important for ADB?

Development of a sound and achievable agenda for the introduction of improved techniques to MfDR is critical to ADB for two reasons:

1. The new global imperative requires that all development partners and other stakeholders demonstrate high levels of effectiveness. This global agenda is based on an expectation that all institutions, including ADB, can demonstrate their development effectiveness. Now, more than ever before, stakeholders, including bilateral aid agencies, are inquiring into the empirical evidence that shows that institutions like ADB are effective and that their results are employed to manage those institutions. ADB will be better able to articulate the effectiveness of its financial and non-financial assistance by a more systematic method to manage for development results.

2. ADB must constantly improve its management and its administration. ADB must constantly evolve to keep pace with the changing world of public administration, particularly among international finance institutions. Improved techniques to help us better manage for development results represents a significant step forward on this journey.

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What are the Monterrey Statement and the Marrakech Memorandum?

The "Monterrey Statement" is an international commitment, signed in March 2002 by all the multilateral development banks (MDBs), together with UNDP and OECD, encapsulating a commitment to better measuring, monitoring and managing for development results.

See:

• Marrakech Memorandum [ PDF: 41KB | 2 pages ], the companion international document signed in February 2004 by the above parties, which renewed the commitment by the international stakeholders to the global results agenda

• Core Principles [ PDF: 158KB | 3 pages ] that will contribute to harmonization of activities under the results agenda, adopted by the international stakeholders

• Global Action Plan [ PDF: 420KB | 5 pages ] that sets out the key steps to be taken to maintain the momentum for the global results agenda

ADB is a signatory to these international documents.

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What is the Paris Declaration?

The Paris Declaration [ PDF: 95 KB | 12 pages ]* embodies a set of commitments forged by the global development community at the Second High-Level Forum on Aid Effectiveness* held in Paris during 28 February – 2 March 2005. The commitments towards enhancing development and effectiveness covered five areas: ownership, alignment, harmonization, managing for results, and mutual accountability. Twelve indicators of progress in relation to the commitments were presented. Before September 2005, the five preliminary targets to be achieved by 2010, will be reviewed, and specific quantitative targets for the remaining seven will be adopted. Two rounds of monitoring of these commitments are envisaged before holding a meeting in a developing country in 2008 to review progress in implementing the Paris Declaration.

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What are some of the pitfalls commonly encountered by organizations that have adopted MfDR?

• Risk of distortions in behavior. These could be in the form of resistance to a results framework, dishonest reporting, or a focus on tasks that are easy to measure or achieve, rather than on more important tasks. To avoid possible distortions, incentive systems should be revised in order to give proper weight to results, taking into account the need to align staff incentives with corporate priorities.

• Adopting too many indicators. In an effort to cover all information needs, a system could become too complex. It is important to select the few vital indicators that test progress on strategic outcomes—not individual activities.

• Emphasis on attribution. At the aggregate level (outcome and impact levels) it is difficult, if not impossible, to attribute changes and results to certain projects and programs. Shared vision, joint accountability, and collective use of indicators and data help avoid these pitfalls. Managing for results is a tool for dialogue, partnership and participation.

• Expecting too much too soon. Design and implementation of an effective system to manage for results takes time and resources particularly since the change needs to be driven internally by those who will use the information on performance results.

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Where can I find examples of MfDR applications at the country, sector, and project levels?

You will find MfDR applications at these levels in the MfDR Sourcebook* developed by the OECD-DAC Joint Venture on MfDR. It also describes the uses of MfDR in selected development agencies. Additional references are also available in the MfDR Resource Center Database and Community of Practice on MfDR (CoP-MfDR)** website

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I have another MfDR question. Where can I find answers?

ADB welcomes questions related to MfDR, and answers to these questions may be posted on this website. Please send your questions to the Results Management Unit of ADB. While ADB cannot respond to all questions individually, these will be given consideration in the updating of website content.

You may also want to join online discussions on MfDR at the Community of Practice on MfDR (CoP-MfDR)** website.

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**This link takes you outside the MfDR website. Please use the back button to return to MfDR at ADB.org.