Institutional Reforms and Development Effectiveness

The implementation of institutional reforms in 2009 has:

• strengthened the linkage between  institutional priorities and resource allocation;
• enhanced institutional budget flexibility through increased fungibility and devolved authority;
• reinforced the new accountability and performance framework by linking deliverables to Key Performance Indicators (KPIs); and
• introduced a consolidated, multi-year programming and budgeting framework.

The institutional reforms include the following: enhanced corporate services delivery, budget reforms, increased decentralization and improved operations business processes, which are discussed  individually below.

Corporate Performance Monitoring: In 2009 in accordance with the 2008-2012 Medium-Term Strategy (MTS), the Bank established and filled the position of Chief Operating Officer (COO). The role of the COO  is multifaceted, including: ensuring overall coherence and coordination across Complexes; the alignment of resources in conformity with strategic priorities; and enhanced monitoring and  management of corporate performance. The Bank also strengthened the role of the Senior Management  Coordinating Committee (SMCC) and the Operations Committee (OpsCom).

Budget Reforms: The Bank has given Managers more flexibility in the use of their budgets in order to maximize cost effectiveness. It has also allowed them discretion to change the mix of inputs as they  consider appropriate, instead of having to justify their decisions and seek approval from Senior  Management. Performance and efficiency indicators have been developed at institutional and Complex levels, and performance monitoring now represents the central tool for enforcing accountability. The Key Performance Indicators (KPIs) were used to monitor institutional effectiveness in 2009 by comparing targets to results.

Decentralization: In order to strengthen the Bank’s presence in the RMCs, 26 Field Offices (FOs),  including a Regional Office (RO) in South Africa, were established by year-end 2009. However, only 23 of these FOs were fully staffed and functioning by this date. The other 3 are now operational but not fully  functioning. Following the implementation strategy proposed by a Presidential Working Group in 2008,  the Bank established a Task Force to formulate a decentralization road map. The recommendations of this Task Force will be presented to the Boards of Directors in 2010.

Operations Business Processes: The outcomes of the Operations Business Processes Reforms include  enhanced cross-Complex coordination, empowered country teams, and streamlined processes for  greater strategic alignment and delivery. In 2009 a comprehensive revision of the Delegation of  Authority Matrix was carried out. Within this framework, Field Officers now have delegated authority to  handle loan negotiations, signature, loan administration, portfolio management, project supervision,  and dialogue and communication with RMCs and partners.