MDBs roles in motion - UNOSD National Agenda to... · 282892-04-Strategy Workshop 1 -26Feb14-MM-V9.pptx 3 ... •“Glocal” Mindset ... etc) •Abundance Culture •Human Development

IDBG NEXT 10 YEAR STRATEGY

MDBs STRATEGIES

Rafee Yusoff

Email: [email protected] / [email protected]: rafeeyusoff.wordpress.com/

Twitter: @rafeeyusoff

mailto:[email protected]

282892-04-Strategy Workshop 1 -26Feb14-MM-V9.pptx

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OUTLINE

IDBG in Brief – The MDB Context

Long Term Planning (Strategies) – Learning, Unlearning & Relearning

Strategic Implementation – Process, Context & Content

Monitoring & Reporting : Design & Reality

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Our mandate?

“ The purpose of Islamic Development Bank shall be to foster economic development and social progress of Member Countries and Muslim Communities in

Non-Member countries individually as well as jointly, in accordance with the principles of the

Shariah ”.

MC MCs

Trade-Investment-Knowledge

Investment & Project Financing

Capacity Development Business Networking

Also Covering Muslim Communities in 64 Non-Member Countries


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MDBs roles in motion

Financial transfers

Risk managementand PPP support

Technical assistanceand capacity building

Research/think tank

Small capacity relative to global financial markets; country needs greatest for concessional funding

Risk management often done implicitly (except guarantees) ; 'third party' PPP credibility

Comparative advantage being eroded and capacity building proving elusive

Still a valuable role but challenge is to finance it at significant scale and attract/retain top talent

Roles Notes

Convenerand partnership

platform

Credibility/flexibility support this role; demand related to lack of global governance mechanisms

Tendancies

a

b

c

d

e

Ilustration

source Enrique, BCG, 2013


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• Land • Labour

• Infrastructure• Capital

• Labour

• Human Capital

• Technology &

Knowledge

• Risk Capital

Factor DrivenInvestment

DrivenInnovation Driven

The world is constantly upgrading itself – change can happen at anytime, anywhere, by anyone. How can we manage change?

Knowledge Intensity

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Lesson Learned

1. Leadership• “Glocal” Mindset

• Rapid Planning Environment • Institutional Reform (Eco-

System)

2. Delivery : Networked Model• Content/Value Addition (post FDI,

etc)• Abundance Culture• Human Development Agenda

Middle-Income ‘Trap’

Value Driven

• Sustainability

(Maqasid)

• Human Capital

• Technology &

Knowledge

• Risk Capital+social capital+ cultural capital

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WHAT IS YOUR IDEAL (ROLE OF) MDB?

HOW SHOULD WE MEASURE THE SUCCESS OF AN MDB?


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OUTLINE





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Value proposition & allocation of resources

Strategy phase already initiated: Strategy framework adapted to IDBGcontext

Major themes - strategic positioning

MC Develop.

Strategic situation Strategic positioning and choices

IHigh level implications of the

strategy

II III

Business & Financial implications• Strategy process• Growth• Mobilization of resources

Operational implications• Centralization - decentralization• Partnership• Delivery model

Strategic landscape

MCs needs &trends

Megatrends

Context

Islamic FinanceCooperation /

solidarity

Vision, Mission& Strategic Thrust

Organizational implications• Governance• Group structure• Capacity/Capability• HR

Country Focus Global Focus

Performance Assessment report

Internal assessment

MDBs & DA1

strategies &

evolution

Implications

1. Development agencies

Instruments

Target segments and clients

Institutional capabilities

Strategic allocation of resources

Source: IDBG & BCG Team Analysis


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IDBG strategy emerging from MC demands, mission and vision as well as uniqueness and capabilities

MCs expected demands to IDBG

Strategy & offeringSelection of what IDBG is

prepared to offer

MCs current challengesand prospective needs

IDBG Mission, vision and mandate

IDBG Uniqueness, current capabilities

and constraints

Trends and challengesfrom other MDBs and development landscape

Stakeholder consultation

New challenges arisingfrom Megatrends

MC Dev position

Implications of the strategy

OIC actionplan

Post MDGagenda

Source: IDBG & BCG Team Analysis


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IDBG Vision 1

CONNECTIVITYA Strong Catalyst for

South-South Collaboration

IFS GROWTHA Leading Reference in Islamic

Finance

INCLUSIVENESSBecome a Preferred Partner for MCs Social and Economic Development

Economic and social

infrastructure Social development

Cooperation between MCs2

Private sector development

Islamic finance sector development

Resource mobilizationSelectivity Manage for result

Financial sustainabilityLink strategy to budget

and resources Group synergy

Build capabilities in strategic pillars

1. To be updated as the UN Post MDG and Post OIC 10 Year Plan of Action is updated 2. and Muslim Communities in Non MCs 3. Capacity building is integrated in each strategic pillar Note: The strategic goals to be defined later for the 3 Strategic Objectives as OIC and UN finalize their future global goalsSource: IDB, BCG

IDBG Response : Next 10 Year Strategy Framework

OverarchingVision

Strategic Objectives

5 Strategic Pillars+ 1 CC

Area3

Guiding principles

Capacity Development


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MDBs 10 Year Strategies

Objectives

Core Areas

WB

Ending Extreme Poverty & Promote Shared Prosperity

Ending Poverty in the Region

Contribute to a more inclusive Growth & Support Transition to Green Growth

Partner for transparency, accountability and anti-corruption policies

A sustainable partner-of-choice in MC development, an authoritative reference in Islamic finance, and the most prominent facilitator of MC cooperation

Global Practices Water Social protection and labour Environment and natural

resources Education Health, nutrition and population Energy and extractives Macroeconomics and fiscal

management Trade and competitiveness Finance and markets Urban, rural and social

development Governance Poverty Gender (cross cutting ) Jobs (Cross cutting)

Core Infrastructure Regional Economic Integration Private Sector Governance & Accountability Skills and Technology

Areas of Special Emphasis Fragile States Agriculture and Food Security Gender

Core Infrastructure Regional Environment Cooperation and Integration Financial Sector Development Education

Other Areas Health Agriculture Disaster and Emergency

Assistance

Core Economic and social

infrastructure Private sector development Islamic finance sector

development Social development Cooperation between MCs Capacity Development (cross-

cutting)

Sector Priorities: social policy for equity

and productivity; institutions for growth

and social welfare; competitive regional and

global international integration;

climate change adaptation and mitigation and sustainable and renewable energy.


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Rethinking MDB Strategy

IDBG Vision 1

Mission

8 S

trate

gic

T

hru

sts

Islamic Vision for Development

Strate

gic

C

ha

lle

ng

es

Organizational Reform

IDBG Vision 1

Mission

CONNECTIVITY

A Strong Catalyst for South-South

Collaboration

IFS GROWTHA Leading Reference

in Islamic Finance

INCLUSIVENESS

Become a Preferred Partner for MCs

Social and Economic Development

Economic and social

infrastructure

Social developmen

t

Cooperation between

MCs2

Private sector

development

Islamic finance sector

development

Resource mobilization

Selectivity Manage for result

Financial sustainability

Link strategy to budget

and resources

Group synergyBuild

capabilities in strategic pillars

Capacity Development


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Some ‘off the calf’ remarks on SDG – The Critics-Challenge…..

“if everything is a priority, noting is a priority”

…. Phyllis Pomerantz (Prof at Duke U, Public Policy)

“I think the SDGs are both worthless and yet worth it.”

…Lant Pritchett (Fellow, CGD & Prof at Havard, KSoG, ExWB)

“senseless, dreamy, garbled,”

William Easterly is professor of economics at New York University and author of The White Man's Burden

http://www.cgdev.org/content/expert/detail/2716/


WHAT SHOULD BE THE VALUE-ADD OF MDBs?


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OUTLINE





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IDBG should evolve from its primary role as a financier to a connector and knowledge provider

Time (Yrs)

Relevance asdevelopmentpartner for MCs

Financier ConnectorKnowledge provider

Primarily financier

Financier and knowledge provider

Financier, knowledge provider and connector

• IF knowledge leadership• Platform for Islamic banks• Crowd source knowledge • Capacity building • Initiate scaling up of reverse linkage

• Reverse linkage as primary platform for cooperation (knowledge, trade and investments) , and replicate programs across MCs

• Regional integration programs

IDBG's role as a financier is critical to maintain financial sustainability


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BUIDLING AND OPERATIONAL PLAN : THE KEY DRIVERS

The Medium

TermOutlook


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Best-practice strategic-planning process:top-down plus bottom-up

Source: BCG e

Key principles High-level top-down plus bottom-up planning process

Best-practice process• Aligns corporate and BU objectives, resource

deployment, and support mechanisms• Establishes constructive dialog between

corporate and BU

Top-down elements — Corporate• … Owns and designs process• … Sets targets, approves plans• … Aligns resources and compensation

Bottom-up elements — BU• … Owns and develops BU annual plan• … Aligns detailed operating plans

Corporate strategy is developed outside of the W and informs the BU planning process

Corporatecenter

Business units

Planning

BU review meetings

Develop detailed operating plans

Allocate re-sources to support plans, mea-sure, moni-tor, reward

Ground process, set targets

Develop BU 3-yearplan

Resolve conflicts, iterate as required

'Freeze the spec' on strategy

Execution

Aggregate plans, compare to goals and roles

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Organizational Features : Best-Fit

Key Elements Past & Present Prospecting

Governance & StakeholdersRelationship

• Focus Group (Board, etc)• “Holding Co”

• Socializing the Agenda• “Venture Co”

Financing Model • Shareholders • Capital Market•Partners

Crowd funding

Organizational Design : Accountability, Structure & Functions

Employer of ChoiceCentralized vs Localized

•People Strategy : People with Choice •Projectization

Product & Business Development • Financing•Knowledge•Risk Mitigation• Connector

•Open Source & Crowd Sourcing• Localizing

Marketing & Delivery Client Facing Relationship Management

Performance Management Result-Based Management Innovative/Smart Financing


HOW TO BETTER INTEGRATE (PROCESS) STRATEGY TO RESOURCES?


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OUTLINE





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Comprehensive Human Development1435 2018

2025

$M

People provided access to infrastructure

People reached with basic social services

Jobs created

People to attend training/learning events

Cooperation among MCs1435 2018

2025$

B

Intra-OIC trade to be financed

Intra-OIC trade & Investment to be insured

Financing Facility to Support RCI

Project Financing for RCI

Islamic Finance Sector Development1435 2018

2025

Ctys

Countries to have appropriate eco-system for Islamic Finance

Countries to have integrated their IFIs with international system

Countries to have 100% of their population able to access IFSResu

ltsGo

als

Perf

orm

ance

Results-Based Management 1435 2018 2025

Budgeted Initiatives linked to Strategy Map targets

Satisfactory rating of MCPS at completion

Client satisfaction (Client Perception Survey)

Satisfactory rating of IDBG operations (GOED Rating)

Budgeted initiatives shared lesson learned at closure

Resource Mobilization 1435 2018 2025

Resources mobilized through co-financing

Resources mobilized through IDBG managed funds

Group Synergy 1435 2018 2025

BED resolution related to strategic areas

Joint engagement (Staff Survey)

Quality of corporate services (User

Surveys)

Shared expenses (as % of total expenses)

Operational Efficiency 1435H 2018 2025

Increase in results per $1 million invested

Reduction in expenses per $1 million disbursed

Reduction in time from Concept to 1st disbursement

People Management 1435 2018 2025

Professionals (as % of total workforce)

Client facing professionals (as % of total

professionals)

Staff in field offices (as % of total workforce)

Staff Engagement (Staff Survey)

Managerial Effectiveness (Staff Survey)

Staff Inclusion (Staff Survey)

Financial Performance 1435 2018 2025

Average annual approvals growth

Disbursement ratio

Expense-to-NetIncome Ratio

ROE

Average annual growth of net income

Inclusiveness1435 2018 2025

Reduction in population living in/near poverty

Reduction in population living in severe poverty

Connectivity1435 2018 2025

Increase in Intra-OIC Trade

Increase in Share of OIC in Global FDI

Global Islamic Finance Sector Growth1435 2018 2025

Share of Islamic Finance clients (as % of world population with formal

accounts)

Share of Islamic Finance institutions’ assets (as % of world financial

assets)

IDBG CORPORATE (RESULT-BASED) SCORE CARD

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World Bank Group Scorecard – April 2015


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Linking Strategies

National Development Plans & Strategies

Thematic/ Sectorial

Strategy/Plans

Sub Regional

Straetgies

Country

Partnership

Strategy (MCPS)

Operation PlansIDBG 10 Year

Strategy

Institutional

Transformation

Islamic Financial Sector

(for) Development

Intra OIC Trade, Services,

Investment, Knowledge

5+1 Results

Programs

Performance


HOW TO BETTER CREATE SHARED OWNERSHIP ?

How should we Rethink National Strategy?


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لكمشكرا

Thank You

Merci

Documents

MDBs roles in motion - UNOSD National Agenda to... · 282892-04-Strategy Workshop 1 -26Feb14-MM-V9.pptx 3 ... •“Glocal” Mindset ... etc) •Abundance Culture •Human Development