1. Abstract
This case study examines results-based management (RBM), a tool widely used in
development cooperation. Various multilateral and bilateral donor institutions as well as
developing countries have introduced it since the early 1990s. However, marked differences
in applying this tool can be observed, which raises questions regarding the coherence between
principles underlying the management approach and characteristics specific to organizations
that are committed to performance management. The two main functions associated with this
tool are enhancement of organizational learning and improvement of accountability. The
question how the mandate and structural characteristics of two donor agencies determine the
specific conception of the RBM approach guides the analysis of the RBM system in two
development agencies, the Canadian International Development Agency, CIDA, and the
German agency, Gesellschaft für Technische Zusammenarbeit, GTZ.
The two main functions of RBM have spurred its acceptance within the development
community, as pressure rose in recent years to improve aid effectiveness and to account for
aid funds, both on the side of aid agencies as well as on the side of aid recipients. The
organizational perspective of this research is paired with the developmental perspective, when
the potential of RBM to foster learning in development cooperation is explored. As
organizational learning is the critical issue on the donor side, ownership of the development
process is the critical issue on the side of countries receiving development aid. As will be
shown, an important overlap of basic features links the two perspectives chosen for this case
study. The connection of the two sides that influence aid effectiveness is underlined in the
present debate on development as this debate gravitates around learning in development
cooperation and engaging development countries to take responsibility for the development
process. The examination of how RBM relates to organizational learning and ownership will
help to assess the importance of structural and contextual aspects of the agencies RBM
approach.
In order to understand different interpretations of RBM, this research looks at the
organizational context of the two chosen aid agencies. More specifically, the analysis focuses
on procedures for monitoring and evaluation, management tasks that are closely related to the
learning process and that contribute to the empowerment of development partners. By
choosing the project level as the unit of analysis, the case study also looks at the
developmental context under which RBM is applied. With both organizations managing
initiatives in Mozambique, one project of each agency serves as example for how RBM

2. supports organizational learning and how the managerial practice strengthens local
ownership. With the limited scope of a two-by-two case study, representativeness of findings
cannot not be expected. Hence, the aim of this study is to explore contextual factors that
influence the interpretation and application of RBM in the two aid organizations and the two
projects. Based on evidence collected from agency documents, project documents, and
interviews with project managers, Mozambican counterparts and agency managers, the
interdependence between RBM, organizational learning, and ownership will be exposed for
the two cases.