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3.30 4.15pm Managing For Results In Pfm (Jean Baptiste Sawadogo)
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3.30 4.15pm Managing For Results In Pfm (Jean Baptiste Sawadogo)

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Management for results has become a focus of international efforts worldwide. Provides a analysis and observations about Management for Results in PFM

Management for results has become a focus of international efforts worldwide. Provides a analysis and observations about Management for Results in PFM


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  • Leader One Inc
  • Transcript

    • 1. ICGFM Winter Conference: Performance. Results. Outcomes. Understanding Impact in Managing Public Finance ‘ Managing for Results’ (MfR) in ‘ Public Financial Management’ (PFM) . December 2-4, 2009, Washington D.C. . Jean-Baptiste Sawadogo President Leader One Inc Tel. +1 613 721 8087; E-mail: [email_address] © 2009 Leader One Inc.
    • 2. ‘ Managing for Results’ in ‘Public Financial Management’
      • New ‘experiment’ in Public Sector Policy and Management
      • Very limited studies, literature and evidence
      • Provide a bird’s view perspective
      • Improve understanding of MfR
      • Share observation and reflections on the topic
      • Stimulate debate on MfR and its potentials for PFM and good governance
      © 2009 Leader One Inc.
    • 3. MfR and its Impact in PFM
      • MfR: results first; then resources, then …
      • PFM : money first; then processes; then results??
      • MfR: impact mostly on developed country agencies
      • MfR can potentially impact developing country PFM
      • MfR to likely suffer from the ‘pendulum effect’
      • The impact of PFM: the improved wellbeing and prosperity of citizens: girls, boys, women, men
      © 2009 Leader One Inc.
    • 4. Managing for Results (MfR) is a Strategic Quest for Results
      • MfR practiced for millenniums
      • Strong military influence
      • ‘ Managing for Results ’ - the precursor term for ‘ Strategic Management ’
      • MfR: envisioning results, aligning resources and taking action to achieve results
      • The private sector uses MfR to create wealth ;
      • The public sector can use MfR to deliver results to citizens
      © 2009 Leader One Inc.
    • 5. Global MfR Drivers & Milestones
      • Finance is finite AND “Do more with less!” - early 1990s recession
      • Finance is not everything
        • CIDA’s Strategic Review and Renewal Exercise (1990+)
        • The ‘Government Performance and Results Act’ is enacted in the U.S. (1993)
        • Results-Based Management (RBM) at CIDA (1993+)
        • Office of the Auditor General of Canada Report (1993+1995)
        • Aid Effectiveness Principles adopted by DAC-OECD (1996)
        • Assessing Aid: a World Bank report (1998)
        • Results for Canadians - a Government-wide RBM Policy (2000)
        • Many OEDC countries have adopted a results-focus (+ - 2000)
        • The Millennium Declaration on the MDGs at the UN (2000)
        • ‘ Managing for Development Results’ – WB and OECD (2002)
        • Paris Declaration on Aid Effectiveness DAC-OECD-led process (2005+)
      • Global consensus on the need for a results focused approach
      © 2009 Leader One Inc.
    • 6. A New Global Imperative: ‘Managing for Results’
      • Demands on governments and their agencies to deliver results and be accountable
      • Demands on international organizations to “focus on results”
      • Demands on private firms to perform: financially and socially
      • Requirement for innovative results oriented management approaches
      • Increasing demand for Results-Focused PFM
      © 2009 Leader One Inc.
    • 7. Performance Review Led to MfR in the Public Sector
      • Performance review : spotlight on “Spending” vs. “Results”
      • ‘ Performance Audit’: ‘Value for Re$ources’ (VfR) in external audit
      • ‘ Managing for Results’ is now fuelling ‘Performance Audit’ and ‘Performance Budgeting’
      • Leadership of ‘Public Finance’ functions is needed
      © 2009 Leader One Inc.
    • 8. The Role of Monitoring and Evaluation (M&E) Towards MfR
      • M&E: precursor practices towards MfR
      • Monitoring during project and program implementation
      • Evaluation during and after implementation
      • M&E functions were first to promote MfR
      © 2009 Leader One Inc.
    • 9. The Role of ‘Performance Audit’
      • Comprehensive Audit: an early form of Performance Audit
      • Performance Audit is:
      • “… a systematic, purposeful, organized and objective examination of government activities; … designed to promote accountable government; … includes the examination of economy, efficiency, cost effectiveness and environmental effects of government activities ...”
      • “ A focus on performance covers both the benefits accomplished [for citizens] and due process and fairness in the delivery of services”(1)
      • Performance Audit calls for performance
      • (1) Excerpts adapted from the Performance Audit Manual, Office of the Auditor General of Canada - June 2004; pages 13 and 17)
      © 2009 Leader One Inc.
    • 10. Growing Impact of Supreme Audit Institutions On PFM Performance
      • Improving SAIs capacity in Performance Audit
      • Improving profile and independence
      • Increasing innovative audit standards & specialties
      • Increasing interaction with parliaments, civil society, the media and citizens
      • Increasing transparency, improved anti-corruption, and increasing accountability
      • Ultimately, improving PFM performance - results for citizens
      © 2009 Leader One Inc.
    • 11. Performance Budgeting - A First Step Towards MfR in PFM
      • Performance budgeting = Results-Based Budgeting
      • Emerged within a decade or so
      • Conveys government commitment to performance
      • A Public Expenditures Management flavor
      • Consists in ‘ informing ’ the ‘ Budget ’ with ‘ Results ’
      • Falls short of being truly ‘ results-focused ’
      • First step towards MfR in PFM for greater Public Sector performance
      © 2009 Leader One Inc.
    • 12. What is ‘Managing for Results’?
      • A deliberate, systematic, rigorous pursuit of results
      • A way of thinking; of doing business
      • Linking of ‘ Re$ources ’ with ‘ Results ’ committed to
      • Two “brands” of results-focused Management
        • Original: ‘Results-Based Management’ (‘RBM’) 1 - Inputs vs . Results (outputs, outcomes, and impacts)
        • Consensus: ‘Managing for Development Results’ (‘MfDR’) 2
      • 1 Original “brand”: Canadian International Development Agency (CIDA); 1993+
      • 2 Subsequent consensus “brand”: DAC-OECD-led consultative process 2002+
      © 2009 Leader One Inc.
    • 13. ‘ Managing for Results’: A Nine-Point Overview
      • ‘ Misconceptions’
      • Principles
      • Precise vocabulary
      • Logical hierarchy of results
      • Tools
      • Crosscutting Issues
      • Performance Management
      • Functional Stakeholders
      • ‘ Rewards’
      © 2009 Leader One Inc.
    • 14. 1. Top ‘Misconceptions’
      • ‘ Managing for Results’ is ‘Monitoring & Evaluation’
      • Attribution of ‘Results’ is impossible; so, MfR does not work
      • The ‘impact’? Don’t bother during project or program implementation.
      © 2009 Leader One Inc.
    • 15. 2. Top Principles
      • Partnership/Participation
      • Transparency
      • Broad application
      © 2009 Leader One Inc.
    • 16. 3. Precise Vocabulary
      • ‘ Reach’ : the human element of MfR
      • ‘ Result ’: an expected or actual achievement
      • ‘ Indicator ’: ONLY a measure of progress or achievement
      • ‘ Target’ : desired level for an indicator
      • ‘ Activity ’: NOT a ‘Result’; IS the ‘ doing ’, the action to achieve a result
      © 2009 Leader One Inc.
    • 17. 4. Logical hierarchy of results
      • Impact
      • Outcomes …
      • Outputs …
      • N.B.: Activities are not results
      © 2009 Leader One Inc.
    • 18. 5. Top Tools
      • The Logical Framework Analysis (LFA) or Logic Model (LM)
      • The Performance Measurement Framework (PMF)
      • The Implementation Plan - the business plan integrates all the parts of MfR
      © 2009 Leader One Inc.
    • 19. 6. Top Crosscutting Issues
      • Gender Equality Mainstreaming : responsiveness to specific issues of girls, boys, women and men
      • Sustainable Environment Mainstreaming: regulatory compliance and proactive developmental sustainability
      • Knowledge Management & Sharing; echoes a 4 th RBM principle: ‘Learning by Doing’
      © 2009 Leader One Inc.
    • 20. 7. Performance Management
      • Performance Management is a subset of MfR
      • Expected results planned ahead
      • Indicators selected and baseline data collected
      • Performance management framework
      • Implementation: activities; budgets; processes; reports; risk mgt., work plans; etc.
      • Continuous monitoring and analysis of results, activities, risks, lessons learned
      • Continuous improvement towards results
      © 2009 Leader One Inc.
    • 21. 8. Top Functional Stakeholders
      • Managerial functions - corporate and line
      • Performance management/review functions (Monitoring, Reporting and Evaluation, MfR)
      • Financial functions (Budgeting, Accounting; Control; Procurement; Internal Audit)
      • Necessity for functional coordinated contribution towards to results; while managing risk
      © 2009 Leader One Inc.
    • 22. 9. Top ‘Rewards’ of MfR
      • Results for citizens - girls, boys, women and men
      • Strong focus: elimination of wasteful ‘activities’
      • ‘ Guaranteed’ ‘Value for Re$ources’: right results at right efficiency
      • Capacity to demonstrate relevance and communicate performance - ‘Results’ vs. ‘Re$ources’
      • ‘ Rewards’: recognition; more funding; winning competitive funding
      © 2009 Leader One Inc.
    • 23. MfR in PFM - Where Are We?
      • Application of MfR in PFM
      • Developing country experiences
      • Developed country experiences
      • Selected country experiences
      • Key challenges of MfR in PFM
      © 2009 Leader One Inc.
    • 24. Application of MfR in PFM
      • Public Expenditures Management mentality
      • Supremacy of the budget process
      • Performance/Results-Based Budgeting mostly
      • Some ‘Results for citizens’ reform: deliberate whole-of-government approach; but…
      • Strong agency/sector/functional orientation rather than true ‘Results for Citizens’ focus
      © 2009 Leader One Inc.
    • 25. MfR in PFM: Developing Countries
      • MfR is a by-product of development aid:
        • Applied to aid projects; then programs
        • Application in ‘Program-based approaches’; progressively in PRSPs
      • Focus on Public Expenditures Management and anticorruption
      • Emerging whole-of-government approaches
      © 2009 Leader One Inc.
    • 26. MfR in PFM: Developed Countries
      • MfR is a by-product of austerity and crisis management
      • Agency/departmental performance management
      • Whole-of-government approaches
      • Improvement of regulatory and policy frameworks
      • Implementation through the budget process
      • The pendulum effect after every crisis hardening vs. easing of rules
      • Dilemma of stimulus packages: quick results vs. fear of risks
      © 2009 Leader One Inc.
    • 27. MfR in PFM - Selected Experiences
      • Canada
      • China
      • France
      • Sweden
      • United States of America
      © 2009 Leader One Inc.
    • 28. MfR in PFM: Key Challenges
      • ‘ Expenditure’ mentality; supremacy of the ‘Budget’
      • Risk-averse culture: across-the-board measures
      • Complexity in government/self preserving structures
      • Divided governance: Political; Legislative; Public Service; Judiciary; Decentralized regimes…
      • Short-to-medium term electoral cycle vision
      • Increased discourse but still confusion and insufficient practice
      • Difficulty in moving beyond activities and outputs
      © 2009 Leader One Inc.
    • 29. MfR in PFM: Where Are We Going?
      • MfR is increasing in awareness and appeal
      • Performance budgeting is increasing in popularity
      • Citizens will keep pushing for results
      • Do we have a choice to practice MfR or not?
      • Yes - BUT…
      • We must master the art and the science for MfR in PFM
      © 2009 Leader One Inc.
    • 30. MfR in PFM: How to Get There?
      • Strong MfR leadership at the top
      • Long term orderly MfR implementation (culture change takes time)
      • Long-term results-focused country vision
      • Comprehensive country results framework
      • Results-focused country strategic documents
      • Results-friendly risk-mitigation practices
      © 2009 Leader One Inc.
    • 31. MfR in PFM: A Final Word
      • ‘ Managing for Results’ is here to stay - citizens will keep pushing for results
      • Private sector uses MfR; creates enormous wealth
      • Private sector flexibility: the budget is a tool
      • Public sector rigidity: the budget is the law!
      • The Public Sector can and must master MfR to deliver sustainable wellbeing and prosperity - for citizens: girls, boys, women and men…
      • If Public Finance professionals catch up with MfR and lead for performance; results; outcome; impact
      • To your results-focused leadership!
      © 2009 Leader One Inc.
    • 32. For Additional Information:
      • OECD-World Bank: Managing for Development Results: www.mfdr.org
      • Canadian International Development Agency: RBM info: http://www.acdi-cida.gc.ca/acdi-cida/ACDI-CIDA.nsf/eng/NAT-92213444-N2H#intro
      • Office of the Auditor General of Canada; Performance Audit Methodology: http://www.oag-bvg.gc.ca/internet/English/oag-bvg_e_859.html
      • Leader One Inc: e-mail to: [email_address]
      © 2009 Leader One Inc.