A Results-oriented Approach to Capacity Development for Democratic Governance

Workshop for CIDA

Ottawa,

10.-11.December 2008

Session 1

Introductions and

Learning Objectives

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Learning Objectives

o Make sense of capacity concepts

o Recognise key elements of the CD challenge in the democratic governance area

o Be able to assist partners adopting a results-based operational approach to CD

o Know options for and limits to own role in support to CD

Session 2

The Capacity Development Challenge - Overview

5

Accra Agenda for Action

“Donors will support efforts to increase the capacity of all development actors – parliaments, central and local governments, CSOs, research institutes, media and the private sector – to take an active role in dialogue on development policy and the role of aid..”

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The Paris/Accra point of departure

“We agreed in the Paris Declaration that capacity development is the responsibility of developing countries, with donors playing a supportive role, and that technical co-operation is one means among others to develop capacity.”

Accra Agenda for Action

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Then – what are we talking about?

Capacity – synonyms:

Ability, capability, aptitude, faculty, competence, facility, power, gift…

So what is the

capacity of this car?

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CD – What does it mean?

o “Many view capacity development in very vague terms“

o “Capacity development is not even a term that most people outside of development organizations really know much about.”

o “The lack of a clear and agreed definition of what is meant by capacity development is a challenge”

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The definitions ...

Capacity:

The ability of people, organisations and society

as a whole to manage their affairs successfully.

Capacity development:

The process by which people and organisations

create and strengthen their capacity....

Support to capacity development:

Inputs to capacity development processes

delivered by external actors....

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Capacity is inside people, organisations and broader

systems

…shaped and influenced by

external factors and actors

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Capacity – in plain figures

Capacity of people,

organisations,systems

Contextual factors and actors influencing capacity

Supportingchange

Two non-exclusive options:

“Working on the demand side”

“Working on the supply-side”

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Five key elements of the approach

A. Focus on change

B. Holistic approach

C. Focus on what is there

D. Results focus

E. Serious about ownership and about donors playing second fiddle – jointly…

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The Change Function

Dissatis- faction

Process of change

Vision

Enhancedcapacity

Cost of change

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Incomplete functions

o D x P x V = Change!

o D x P = Fast road to confusion

o D x V = Anxiety and frustration

o P x V = Bottom of inbox

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Tools for Change

Dissatisfaction1. Quick Scanning Matrix2. Setting the stage: Mapping sector and governance actors3. Political Economy and Stakeholder Analysis 4. Organisational assessment

Change process5. Partners’ role in CD processes6. Change management capacity and design

Vision and design7. Sequencing/

scoping8. Logical design

Session 3

Assessing capacity: Holistic, outputs, power issues – what

to look for?

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Actors, Organisations and System in

Democratic Governance

Public and private frontline

agencies

Citizens, voters,consumers, economic

agents, elitesetc.

Checks andbalances

organisations

PoliticalSystem/Government

Core publicagencies

Context

Governance, demand

Accountability, supply

Donors

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Inputs Outputs

Analytical framework - 1

Capacity of Organisations

Contextual factors within influence

Immed.+intermed.Outcome

Impact

Contextual factors beyond influence

Organisations as open systems

Governance

Development results

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What assessments often find...

o Lack of resources

o Lack of planning

o Lack of effective tax regime

o No transparency

o No effective oversight

o No focus on results

o No….

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Understanding…nothing??

Current reality

DesiredReality:

Democraticgovernance

Measuring the difference…?

..or understanding reality…?

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Combining values and understanding?

Current reality

Desiredreality:

Progress towardsdemocratic governance

Measuring an “actionable” difference…?

.. understanding reality…

relevant benchmarks within reach

.. credible change process

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Capacity diagnosis, step by step..

“Outside-in”:

1. Why assess, who should assess?

2. Watch the context

3. Focus on results

4. Inputs

5. Go inside the box: other boxes...and

6. What lies beneath?

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1. Accra ambiguities on assessments

o “Developing countries will systematically identify areas where there is a need to strengthen the capacity to perform….at all levels…and design strategies to address them”

o Developing countries and donors will jointly assess the quality of country systems in a country-led process using mutually agreed diagnostic tools…. developing countries will lead in defining reform…Donors will support these reforms and provide capacity development assistance.

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2. Embedded in the context

Structural factorsInstitutional factors

= Agents/actors inside and outside organisations

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Stakeholders and actors..

o Individuals and collectives pursuing particular interests...

o Political & economic elite, civil servants, the military, civil society, donors...

o Always strategizing, always dynamic...

o ..and embedded in structural and institutional drivers of and constraints to change

o How can actors help to deal with factor constraints and exploit drivers?

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Actors & Stakeholders

Public and private frontline

agencies

Citizens, voters,consumers, economic

agents, elitesetc.

Checks andbalances

organisations

PoliticalSystem/Government

Core publicagencies

Context

Governance, demand

Accountability, supply

Donors

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3. Outputs first – outcomes next!

o Outputs are all aspects of products, services and regulatory functions

o Past output levels point to likely future

o Outputs are good proxies for capacity

o Capacity changes causes outputs to change

o Dialogue about outputs diverts attention from inputs, vague plans, TA, training…

o But: It is not that simple!

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Challenge

Outputs?

Prepare for the House of the Commons!

Yes, obviously!

No,

never ever!

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Tensions in results-orientation

Managing by Results- Meet the targets

- “Hard” Outputs

- “Objective” assessment or verification

- Outwards accountability

- Rigorous methods and high quality data

- Sanctions and rewards- Encourages conservative

behaviour

Managing for Results- Continuous

improvement- Also “soft” outputs,

outcomes and impacts- Self-assessment and

participation- In- and outwards

accountability - Rapid, low cost methods- Motivation, learning- Encourages risk-taking,

experimenting

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5. Capacity: The six-box model

StrategyAre goals and strategies clear? Do they fit inputs and contexts? Structures

How is work divided?

Rewards (motivation)

Are there incentives for doing key functions?

Helpful mechanisms (systems & processes)Are coordinating and control instruments adequate (planning, budgeting, auditing, monitoring)

Internal RelationshipsBetween boss-staff, peers, and units? Constructive conflict resolution approaches?

LeadershipDo someone keep the boxes in balance; adapt to the context?

Context (actors and factors)(what constraints and demands does it

impose?)

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The 6 boxes unpacked

o Strategy: Are goals and strategies clear? Do the inputs and contexts fit?

o Structures: How is work divided?

o Leadership: Does someone keep the boxes in balance; adapt

to the context?

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The 6 box unpacked (2)

o Internal Relationships:

Between boss-staff, peers, and units? Constructive conflict resolution approaches?

o Helpful mechanisms (systems & processes):

Are coordinating and control instruments adequate (planning, budgeting, auditing, monitoring)

o Rewards (motivation):

Are there incentives for doing key functions?

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6. What lies beneath?

o Look for both the “functional” and the “political” dimensions of organisations

o Look for both formal and informal aspects

o All organisations have informal aspects and a political dimension

o Functional, political, formal, informal - all can strengthen or weaken capacity and change prospects

Question: Who needs to know what, and when, about these aspects?

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“Functional” and “political” dimension of capacity

Functional dimension “Political” dimension

Main unit of analysis?

Drivingforces?

Image of man?

Change?

Change efforts?

Focus on functionaltask-and-work system

A sense of norms, intrinsicmotivation

Employees caring for theorganisation

Participative reasoning,finding best technicalsolution, orderly

Internal systems, structures,skills, technology etc

Focus on power-and-loyalty systems

Sanctions and rewards,incentives

Individuals caring for themselves

Internal conflict, coalitionwith powerful externalagents, unpredictable

Incentives, change of keystaff, outsmarting opposition

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Tool: Diagnosis of formal/informal fit

Formal System Informal SystemPurposes Is there goal clarity? Is there goal agreement?Structure Functional; product/

project; or matrix?How is work actually done?

Relation-ships

Who should deal with whom on what? What technologies should be used?

How well do they do it? Quality of relations? Modes of conflict management?

Rewards (incentives)

Explicit system: what is it?

Implicit, psychic rewards: what do people feel about payoffs?

Leader-ship

What do top people manage?

How? Normative “style” of management?

Helpful mecha-nisms

What is the:-Budget system?-MIS?-Planning system?-Control system?

What are they actually used for?How do they function in practice?How are systems subverted?

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Summary: Diagnostic dimensions

Focus on the functional-rational dimension

Focus on the political dimension

Focus on factors within the organisation(s)

How is the job done?

How is power exercised and interests accommodated?

Focus on factors in the external environment

Is there an “enabling environment” for doing the job?

Which forces influences the internal power relations?

Session 4

Getting CD results and processes right for democratic governance

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Breaking away from a donor-centric focus

is wrongly assumed leading to

Sustainablecapacity and results

is leading to

Sustainable capacity and results

Donor and partners’ input, and partner leadership

Figure 1: The traditional, limited assumption focusing on donor inputs

Figure 2: The extended assumption converting ownership to tangible commitments

DonorTC inputs &activities

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Get CD results right

External TC support to CD

CD processes

Recurrent inputs to the organisation(s)(budget, staff)

CD outputs: Organisation(s) with increased or enhanced capacity to perform

Increased or enhanced outputs (services, products)

Outcomes for users of products and services

Wider impact

Internal resources dedicated to CD

Design logic: Start from impact, work backwards to determine if and how TC support may be relevant and feasible

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Get CD results right

V.A.T. experts

Change process lead by managers with training, coaching, joint development of new processes

CD outputs:Tax authority has procedures, staff and managers able to administer VAT

VAT revenue up 200%, coverage 80% complete

VAT revenues transparently used in budget for social services

Increased literacy, improved health, stronger social contract

Manager, staff, some costs

Design logic: Start from impact, work backwards to determine if and how TC support may be relevant and feasible

Session 5

Change Management and Ownership – how to make it

operational?

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Challenge

Which words are most positively connected with capacity to develop and change?

Powerful, harmony, tension, emotional, agreement, forceful, conflict, orderly, unknown, planned, control, interested, motivated, interests, drive, reason….

Add to the list…

43

Characteristics of change processes

o Rarely linear

o Normally contested and resisted

o Most often incremental

o Goals and plans have ritual functions as much as managerial

o Losses materialise quicker than wins

o Change creates angst

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Key factors for successful CD - process

o External pressure for change

o Leadership, creating sense of urgency, purpose and feasibility

o Credible coalition for change, with enough power to deal with resistance

o Carefully crafted change strategy and cunning change management

o Flexible change process

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Elements of change processes

Agenda setting ->

Formulation/Design ->

Approval ->

Implementation ->

Pausing/phasing out ->

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Four options for interventions

Focus on the functional-rational dimension

Focus on the political dimension

Focus on factors within the organisation(s)

Getting the job done

Getting power right, and accommodating interests

Focus on factors in the external environment

Creating an “enabling environment” for doing the job

Forcing change in the internal power relations

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Change interventions a la carte

Predominantly functional-rational perspective

Predominantly political perspective

Interventions targeted at internal elements

Change of systems, structures, procedures, technology; skills training; management training,

Promotions, firing, targeted support to “groups of reformers”, sanctions against rent seeking, performance-based benefits to key staff

Interventions targeted at external stakeholders and factors

Output-based budgeting, change of resource envelope, change in formal/legal mandate, introduction of supervisory agencies etc.

Coalitions of external stakeholders strong enough to impose change. User pressure for accountability, support to advocacy and lobby groups, training of politicians, journalists.

Session 6

Donor support to CD – roles, means – and joint approaches

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A Challenge from Paris

“Capacity development is the responsibility of partner countries with donors playing a support role”

Paris Declaration 2006

- What does that mean???

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Focus on the sector/organisations

o Don’t ask what donors can do for the organisation/sector…

o ..ask what the sector/organisation might want to do to strengthen its capacity –

o - and whether donors might be helpful or not to that process –

o Question: What could that entail?

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Tool: Development partners’ roles

o Identify the roles actually played in cases you are familiar with

o Discuss if there is a trend between what was done and what maybe should have been done

o Time for the task: 45 minutes

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Discussion – donor roles in CD support?

o Capacity development is a domestic affair

o So, how proactive should donors be?

o If it depends on the context, which context factors are then important?

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Donor roles in developing support

o Support development of broad directions for change and of change strategy

o Focus on feasible CD targets in terms of changes in organisational outputs

o Understand drivers and constraints to become a trusted partner

o Play a catalytic role, do not design or implement

o Ensure that CD inputs can adapt to the process rather than vice versa

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Joint CD support in sector programmes

o The SWAp is all about strengthened sector capacity, capacity often the difficult missing link

o CD is a core part of the sector programme, not an add on – get it on the agenda

o Same principles apply for CD as for other SP areas:

• Alignment to framework and joint plans before joint funding modalities

• Share diagnostics, reviews, dialogue

• Exploit comparative advantages – and disadvantages…

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How donors can support CD processes

o Own efforts

• Behave!

• Get a grip on the context for CD

• Deepen dialogue

• Stop topping-up, poaching of staff etc.

• Don’t go alone

• Seek and share knowledge

o Financed/acquired

• Peer mechanisms

• Piloting new ways

• Staff exchanges

• Knowledge acquisition

• TA

• Training

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LOCAL INSTITUTION(S)

DONORS

TA

Customer?Client?

Beneficiary?Partner?

Stakeholder?Employer?

Doer?

Middleman?Mediator?

Facilitator?Controller?

Spy?

Employer?

Stakeholder?

Customer?

Partner?

Benefactor?

TA - Triangular Affairs- Uneasy Balances?

Session 7

Bringing the ingredients of the CD cocktail together

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Repetition: The Change Function?

Dissatis- faction

Process of change

Vision

Enhancedcapacity

Cost of change

60

Inputs

Results-based CD

Capacityof Sector

System andOrganisations

Contextual factors within influence

Contextual factors beyond influence

CDsupport

Outcomes ImpactOutputs

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Key factors for successful CD - content

o Scope of change in relation to existing capacity

o Realistic targets – defined as outputs

o Combination of various options for CD

o External pressure for change

o Specificity of the products

o Sequencing and timing of interventions

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Basics first?

o Inputs and procedures before results?

o External controls before trust in managers?

o Don’t try to replace patrimonialism, work to modify it?

o Work on reducing discretionality and opaqueness, rather than introducing the Perfect System?

o Leave NPM on the shelf?

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Sequencing

o Platform approach: Basics first, consistent with power relations and change capacity

o Reform units?

o Ring-fencing strategic units?

o Focusing on “uncontroversial” routine processes?

o Risks in all approaches and no right answer

o Sectors cannot do it alone

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CD planning matrix

Impact

Outcomes CD development objective

Outputs CD immediate objectives

Capacity CD results

Recurrent inputs CD activities

CD inputs – all sources

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Monitoring Capacity Development

o Why?

• Accountability

• Promote and sustain change

o Who?

• Depends…

o What?

• The whole chain

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Inputs

Results-based CD

Capacityof Sector

System andOrganisations

Contextual factors within influence

Contextual factors beyond influence

CDsupport

Outcomes ImpactOutputs

Self-assessme

nt

Political system

Customer surveys

Academia

External partners

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Self-assessment

1 2 3 4 5

Leadership

Customer orientation

Teamwork

Systems

2007

2006

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About helping others...

“That if real success is to attend the effort to bring a man to a definite position, one must first of all take pains to find HIM where he is and begin there.

This is the secret of the art of helping others. Any one who has not mastered this is himself deluded when he proposes to help others. In order to help another effectively I must understand more than he- yet first of all surely I must understand what he understands. If I do not know that, my greater understanding will be of no help to him. If, however, I am disposed to plume myself of my greater understanding, it is because I am vain or proud, so that at bottom, instead of benefiting him, I want to be admired. But all true effort to help begins with self-humiliation: the helper must first humble himself under him he would help, and therewith must understand that to help does not mean to be sovereign but to be a servant, that to help does not mean to be ambitious but to be patient, that to help means to endure for the time being the imputation that one is in the wrong and does not understand what the other understands.”

Søren Kierkegaard: The Point of View for My Work as An Author (1859). Translation by Walter Lowrie, Harper & Brothers, New York, 1962.

Session 8

Next steps and future options:

Open Forum

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Proposed agenda

1. CD in CIDA – new ways but love stays?

2. Learning and research needs?

3. Next steps?