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Results Based Management Approach to Conditional Grants

Learning ProcessDevelopment of draft business plan using RBM

concepts, tools and principles DAY – TWO

Technical Assistance Unit

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• Ensure clear and logical design that ties resources and activities to expected results (Non-financial quarterly reports)

• Describe clear roles and responsibilities for the main partners involved in delivering the grant

• Make sound judgment on how to improve performance on an ongoing basis (PIF)

• Demonstrate accountability and public benefit (PIF)• Ensure reliable and timely information is available to senior

management in the national and provincial government; treasury and other key stakeholders (GWM&E/PIF)

Why this training?

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Conditional Grants Business Plans

• There are two sets of business plans – Provincial plans– National Plan that consolidates the 9

provincial plans – From the National plan, select the few

indicators that will be published in the Grant Framework

– Grant Framework is your contract!!!!

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Learning process

• Using the business plan template develop your programme’s: Grant Profile (Logic Model) Performance Framework Risk Plan Logical Framework Analysis/SUMMMARY

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Focus of the exercises

• A sound Logic Model validates the Theory behind the programme and is the first step in developing realistic and relevant performance measurement strategies

• In developing the measurement framework, it is prudent to take stock of the potential risks (internal and external)

• The risks will be used to develop a strategic risk assessment to confirm appropriateness of results and performance targets

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Group Formation Form three group using the three

objectives of the grant

• Use the grant material to develop or re-work your business plan according to the template supplied

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What is Results-based Management

• Is a comprehensive approach to public management based on a client\taxpayer\citizen-centred view

• It focuses on external results (outcomes) rather than on internal processes to drive change

• It integrates strategy resources, performance, measurement, learning and adjusting to improve decision making

• Results information is used for learning and decisions making as well as reporting and accountability

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Why results-based management (2)

• The expected benefits are better responses to client\taxpayer\citizen expectations, particularly with regard to value for money

• It puts considerable emphasis on defining and achieving results and development and improvement

• It facilitates an integrated and coherent approach to public management with improved accountability

• Management for results and not by results – is the key through arrangement of resources to achieve the outcomes

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LOGIC MODEL

BUSINESS PLAN

Grant Profile

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Conditional Grant BusinessPlanning Framework

1 Grant Profile      

1.1 Grant Goal      

1.2 Impact      

1.3 Grant Purpose      

1.4 Outcomes      

 

Grant outcomes Performance indicator Baseline Overall TargetYr1 Yr2 Yr3

   1.      

   2.      

   3.      

1.5 Outputs      

 Grant outputs Performance indicator Baseline Annual Target

Q1 Q2 Q3 Q4

   1.1      

   1.2      

   2.1      

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Logic Model

• It a casual or logical relationship between activities, the outputs and the outcomes of a given policy, programme or initiative

• It ensures that the explanatory text – there is a logical flow of activities to outputs to outcomes of the programme

• In the logical link, link final outcomes to the national department’s and provincial government’s strategic outcome

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Results Chain

A Results Chain can include multiple inputs, activities, outputs or outcomes. There are two types of Results: Outputs and Outcomes.

STRATEGICOUTCOMES INPUTS

(RESOURCES)ACTIVITIES OUTPUTS

OUTCOMES(IMMEDIATE)

OUTCOMES (INTERMEDIATE)

Low Influence

High Control

RESULTS

OUTCOMES (FINAL)

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Use and benefit of a Logic Model approach

• The first link would be the identification of inputs in terms of all resources dedicated to the programme

• The second link would be the activities, processes to be undertaken

• The third link would be the short-term – outputs (results) that are logical consequences of the project activities

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Use and Benefits of L.M. (2)

• The fourth link would be the medium – term outcomes (results) that are logical consequences of achieving a combination of outputs

• The fifth link would be the long-term impacts (results) that are a logical sequence of achieving a combination of outputs and outcome

• The sixth link would be the contribution of the long-term (final) results to achieving the department’s strategic objective

The strength forged with each link adds further strength to the overall results chain

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Another representation of the Logic Model

IMPACTS

OUTCOMES

OUTPUTS

INPUTS

ACTIVITIES

The developmental results at a societal level that are the consequence of

achieving specific outcomes

The medium-term results for specific beneficiaries that are the consequence

of achieving specific outputs

The final products, or goods and services produced by the institution

for delivery to the customer

The processes or actions that use a range of inputs to produce the desired

outputs and ultimately outcomes

The resources that contribute to the production and delivery of

outputs

What we use to do the work?

What we do?

What we produce or deliver?

What we wish to achieve?

What we aim to change?

Plan, budget, implement and

monitor

Manage towards achieving these

results

IMPACTS

OUTCOMES

OUTPUTS

INPUTS

ACTIVITIES

The developmental results at a societal level that are the consequence of

achieving specific outcomes

The medium-term results for specific beneficiaries that are the consequence

of achieving specific outputs

The final products, or goods and services produced by the institution

for delivery to the customer

The processes or actions that use a range of inputs to produce the desired

outputs and ultimately outcomes

The resources that contribute to the production and delivery of

outputs

What we use to do the work?

What we do?

What we produce or deliver?

What we wish to achieve?

What we aim to change?

Plan, budget, implement and

monitor

Manage towards achieving these

results

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A quality review checklist for a Logic Model

• Results are credible to a variety of stakeholders• Impact is within scope of programme/project• Outcomes are expressed as change statements

relative to the participants (e.g. behaviours, knowledge and skills)

• Outcomes meet the SMART criteria– Are within the control/influence of the

programme/project– Are achievable within funding and time available

• All deliverables (events, products, services) are listed as outputs

• All essential/important activities and processes are listed

• All essential/important resources are listed as inputs

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PERFORMANCE MANAGEMENT

BUSINESS PLAN

Performance Framework

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Why measure?

• If you don’t measure, then you cannot meet obligations to explain and justify how responsibilities were discharged

• Without good information on what has happened or is happening, a focus on delivering results is impossible

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Indicators

Targets

Baseline

Sources of data

Collections method

Frequency Responsibility

Outcomes

Outputs

Activities

Inputs

A Performance Measurement Framework

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Project Framework

Input OutputActivity OutcomeWho is

reached

Performance Measures

What we useto do the

work

What wedo

What weproduce

Who Benefits

What outcomes & impact we

wish to achieve.

Typical Focus RBM Focus

Indicators, baselines and targets

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Performance Measurement Plan

• Enables managers to establish the necessary systems, processes to collect and analyse data and information to optimise programme performance

• Evidence based information to help managers make sound management decision, demonstrate success, show ongoing relevance and develop more cost effective alternative to service delivery

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Indicators

• Indicators must cover all the components of the results chain

• The performance information collected and analysed must fulfill all the obligation of the programme manager

• Determining performance indicators occurs in two steps:– Generate a preliminary list of indicators – Identify “critical few” indicators that will be used

to measure performance in the ST – MT

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Characteristics of Good Performance Indicatorsand of a Good System/Portfolio of Indicators

1. Useful Is the information useful in

decision-making and learning?

2. Accurate/Appropriate Is it a valid/accurate

measure of the right result?

3. Meaningful Careful about aggregate

measures (e.g. averages)4. Normalised/Standardised

Is this measure consistent over time and from one organisation to another?

5. Sensitive/Discriminating Will this measure react

sufficiently to reflect changes in the results?

6. Simple Is it easy to collect, analyse,

understand, communicate?7. Affordable

Does the information exist, is it cost effective to collect without disrupting work or trust?

8. Balanced Multiple perspectives,

qualitative and quantitative9. Comprehensive

Is your set of indicators enough to support decision-making?

10. Leading Do you have indicators that

allow you to forecast trends or only report on the past?

But maintain focus, avoid the proliferation of indicatorsBut maintain focus, avoid the proliferation of indicators

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How to determine “critical few indicators”

• Specific – eliminate ambiguity, shows relevance

• Linked – clear (cause and effect) linkages to other indicators

• Reliable - scientifically and statistically sound, provides an appropriate degree of accuracy

• Available – data is easily accessible or there is a low level of effort to collect and analyze

• Understandable - data can be easily grasped by various audiences

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Baseline information

• Baseline information is needed to measure progress

• Collect only significant, decision making relevant information

• Numbers are not enough to answer ‘Why’ questions.

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Data collection strategy

• For each performance indicator, it is important to clarify key points:– Data source– Data availability and accessibility – The frequency of data collection - timelines– Resources required to initiate data collection– Define common definitions and protocols to

ensure data consistency – Determine total cost of data collection and

analysis – in terms of money and effort

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Good reporting

• Characteristics of good reporting:– Relevant: reports tangible and significant

progress against objectives – Meaningful: tells a clear story, describing

benchmarks and context – Attributable: demonstrates the contribution of

activities to objectives– Accurate: adequately reflects facts and an

appropriate level of accuracy – Balanced: does not mislead but represents a

clear picture of the full range of progress“Garbage in, garbage out” – quality of analysis is

only accurate as the quality of information analysed

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RISK MANAGEMENT

BUSINESS PLAN

Assumptions and Risks

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Source: CSPS Source: CSPS

A Basic Risk Management Model

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Risk management • Risk can be defined as the uncertainly that

surrounds future events and outcomes. It is a function of the probability and of the impact of an event with the potential to negatively influence the realization of an organisations’ results

• Risk are determined through the development of assumptions, testing the extent to which the expected results of each objectives can be achieved

• Once risk are identified (high, medium, low), then the programme manager can develop and communicate the strategies required to mitigate and/or eliminate those risks

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RBM and RiskRisk is the uncertainty that surrounds future events & outcomes. It is a function of the probability and of the impact of an event with the potential to (negatively) influence the realisation of an organisation’s expected results. It is estimated by P x I.

Source: CIDA web site

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One example of a risk assessment - extracts

Consolidated Risk Assessment Table

ProbLow (1), Med (2), High (3)

ImpactLow (1), Med (2), High (4)

RiskLevel(PxI)

TimeFactorShort, Med, Long

Current and Future Mitigating Strategies

Residual Risk

Constraints on absorptive capacity in National gov.

H M 6 M Major reasons for the absorptive capacity constraint (e.g. HR, ICT) to be addressed separately. Medium level risk to be accepted but monitored

by JWG.

M

Coordination capacity of National gov.

M M 4 S This low level risk is accepted but nevertheless monitored to

keep it under control.

M

Inadequate M&E resources L H 4 S This low level risk is accepted but nevertheless monitored .

L

Constraints on absorptive capacity in Regional governments.

H H 12 M Major reasons for the absorptive capacity constraint (e.g. HR, ICT) to be addressed separately. Medium level risk to be accepted but monitored

by JWG.

M

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RMBLogical Framework

THEN

IF

AND

Inputs

Activities

Outputs

Impact Assumptions

Assumptions

Assumptions

Assumptions hold true

Outcomes

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The logical Analysis Framework

• It is an analytical tool that can be used for programme design, planning, approval, monitoring and evaluation

• It also serves as a communication tool to develop a common understanding of the programme

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The Logic in the LogFrame

Source : CIDA websiteSource : CIDA website