optimizing use of mdb resources through effective partnering with the private sector
Download
Skip this Video
Download Presentation
Optimizing Use of MDB Resources through Effective Partnering with the Private Sector

Loading in 2 Seconds...

play fullscreen
1 / 27

Optimizing Use of MDB Resources through Effective Partnering with the Private Sector - PowerPoint PPT Presentation


  • 114 Views
  • Uploaded on

Optimizing Use of MDB Resources through Effective Partnering with the Private Sector. Diana Smallridge President International Financial Consulting Ltd. March 2005. MDBs have a responsibility to ensure their activities “crowd in” the private sector.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about ' Optimizing Use of MDB Resources through Effective Partnering with the Private Sector' - gabe


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
optimizing use of mdb resources through effective partnering with the private sector

Optimizing Use of MDB Resources through Effective Partnering with the Private Sector

Diana Smallridge

President

International Financial Consulting Ltd.

March 2005

mdbs have a responsibility to ensure their activities crowd in the private sector
MDBs have a responsibility to ensure their activities “crowd in” the private sector
  • MDBs must ensure that their products and programs fill a precisely defined market gap
  • The need to maximize private sector financial players must be a critical part of their strategic focus
  • However, too often MDBs lose sight of this and their activities are not as catalytic as they could be.
there has been insufficient focus on this at the senior management level
There has been insufficient focus on this at the senior management level
  • Market gap thinking has not traditionally been part of MDBs’ strategic planning focus
  • While the mandate is well defined (poverty alleviation etc.), the strategies to execute the mandate are not.
  • There is often confusion and lack of clarity in the implementation of the mandate
behaviour will change with new incentive structures clarity of strategy
Behaviour will change with new incentive structures & clarity of strategy
  • New management incentive programs and processes must be devised
  • Need for change in the behaviour of some institutions/officials
  • New strategic direction must be defined in detail
  • Time is right given change in leadership at several of the MDBs
strategic planning must be a high priority and be lead by professionals
Strategic Planning must be a high priority and be lead by professionals
  • Is not a top-down approach; should include input from all levels of the organization
  • Must be lead by individuals with “ears” to hear the views and perspectives of the full spectrum stakeholders
  • Senior management must have a stake in it
  • Must balance the needs of many; cannot be “hijacked” by one stakeholder group
strategies must cascade down into individual s performance objectives
Strategies must cascade down into individual’s performance objectives
  • Clear institutional strategies must feed into each employee’s annual performance objectives
  • Employees must be able to relate to the institutional objectives and strategies
  • Strategies must be detailed and specific
a strategy toolkit links strategic objectives with performance measures
A Strategy Toolkit links Strategic Objectives with Performance Measures
  • Strategies must reflect the universality of stakeholders
  • The inherent conflicts in meeting divergent stakeholder interests must not be avoided but addressed head-on using balanced strategies
  • The Balanced Scorecard should be employed to measure progress against the strategic objectives
measure what matters
Measure What Matters
  • It is important to define what success means and measure it
  • What matters is incremental progress towards closing the gap between the current state and a well-defined future state
  • Measure how much progress is being made towards closing the gap
  • Measures are results-based and usually quantifiable
manage what is measured
Manage What is Measured
  • This is a fact of life. Behaviour changes when measurement happens.

Measurement is the first step that leads to control and eventually to improvement.

If you can’t measure something, you can’t understand it.

If you can’t understand it, you can’t control it.

If you can’t control it, you can’t improve it!

H. James Harrington

there are different types of measures

OUTPUT

OUTCOME

INPUT

Number of

Loans issues

Cost of Funds

Level of per capita GDP

There are different types of measures
a performance measurement system links institutional level strategies

Strategic Objective #1

IFC in a Leadership Role

Establish a reputation for leadership in key spheres

Priority

Results

  • Review Environmental, Health and Safety Policy
  • Actively support Equator Principles
  • Review replicability of Tadjikistan Power Project

Action Plan

  • New EHS Policy
  • More EQ bank members
  • Internal working group to define key elements
A Performance Measurement System links institutional level strategies
a performance measurement system links institutional level strategies1

Strategic Objective #2

Increased partnership with Private Providers

Use IFC’s resource more effectively to catalyze private sector sources of capital

Priority

Results

  • Increase number of B-loan participants
  • Decrease the ratio of IFC capital to private capital in private equity
  • Decrease the cases of competition with other MDBs

Goals

A Performance Measurement System links institutional level strategies
individual objectives and measures roll up into the strategic objectives and measures

Partnership with the Private Sector Providers

  • Regular formal consultations with international banks, local banks and private insurers on risk sharing concepts
  • Product development which reflects market gaps and IFC’s core strengths
  • Performance measures and incentive systems which promote co-operation
Individual Objectives and Measures roll up into the Strategic Objectives and Measures

Strategic Objective #2

Priorities

  • Define key market needs in financing private sector
  • Identify which organization is best placed to meet identified needs (international, local; private, public)
  • Survey key players
  • Define gaps which IFC could fill
  • Develop or refine product
  • Apply product to pilot transactions
  • Review

Action Plan

Performance Measure

  • Level of co-financing with commercial banks
  • Level of co-investing in private equity funds
measurement should start at the strategic level and cascade down
Measurement should start at the strategic level and cascade down

STRATEGIC

OBJECTIVES

President

STRATEGIC

MEASURES

Vice President

To be truly

effective, strategic

performance measures

need to be linked directly

to the day-to-day activities

of people in the organization.

An important way for this to

happen is to link strategic measures

to the competencies and the performance

objectives of individual employees.

“Bullseye! Hitting Your Strategic Targets Through High Impact Measurement”

Schiemann and Lingle

Division Heads

BUSINESS UNIT

MEASURES

Managers

INDIVIDUAL

MEASURES

Staff

slide19
An integrated Performance Management System links Strategic Planning with individual’s performance objectives

Staff

Strategic PlanningBusiness PlanningIndividual Performance Objectives

Staff

Manager

Division Heads

Staff

Manager

Staff

Manager

Division Heads

Vice-Presidents

President

Staff

Manager

Staff

Division Heads

Manager

Staff

Manager

Staff

Staff

Strategic MeasuresBusiness MeasuresIndividual Measures

for example the president s objectives can be those of the bank
For example, the President’s objectives can be those of the Bank

Staff

Staff

Manager

Strategic Objectives

  • Financial Sustainability
  • Risk Taking
  • Catalyst
  • Partner

Staff

Division Heads

Manager

Staff

Manager

Vice-Presidents

Division Heads

President

Staff

Manager

Staff

Division Heads

Manager

Staff

Manager

Staff

Staff

and his performance measures are the bank s measures

Performance Measures

  • Profit
  • Net interest margin
  • ROE
  • RAROC
  • Loans/Assets

Division Heads

Deputy General Managers

Division Heads

Division Heads

… and his performance measures are the Bank’s measures

Staff

Staff

Manager

Strategic Objectives

  • Financial Sustainability
  • Risk Taking
  • Catalyst
  • Partner

Staff

Manager

Staff

Manager

President

Staff

Manager

Staff

Manager

Staff

Manager

Staff

Staff

a vp can have objectives which are a subset of the bank s

Business Objectives

A VP can have objectives which are a subset of the Bank’s

Staff

Staff

Manager

Staff

Division Heads

Manager

Staff

Manager

VP

Division Heads

General Manager

Staff

Manager

Staff

Division Heads

Manager

Staff

Manager

Staff

Staff

and her performance measures are a subset of the bank s measures

Performance Measures

Business Objectives

Division Heads

Deputy General Managers

Division Heads

Division Heads

…. and her performance measures are a subset of the Bank’s measures

Staff

Staff

Manager

Staff

Division Heads

Manager

Staff

Manager

VP

Division Heads

General Manager

Staff

Manager

Staff

Division Heads

Manager

Staff

Manager

Staff

Staff

a division head in the staff area has objectives in support of the business

Business Objectives

Business Objectives

  • Introduce a Treasury Risk Management system
A Division Head in the Staff area has objectives in support of the business

Staff

Staff

Manager

Staff

Division Heads

Manager

Staff

Manager

Deputy General Managers

Division Heads

General Manager

Staff

Manager

Staff

Division Heads

Manager

Staff

Manager

Staff

Staff

and can be measured by achieving certain milestones

Business Objectives

… and can be measured by achieving certain milestones

Staff

Staff

Manager

Performance Measures

Staff

Division Heads

Manager

Division Heads

Staff

Manager

Deputy General Managers

Deputy General Managers

Division Heads

General Manager

Division Heads

Staff

Manager

Staff

Division Heads

Division Heads

Manager

Staff

Manager

Staff

Staff

this forms the basis for the performance appraisal system

Strategic Planning

What Performance?

Business Planning

Goal Setting

Action Planning

How?

Mid-stream Corrections

Quarterly Monitoring

How Did We Do? Why?

Year End Measurement

Individual Performance Appraisal

Unit Performance Appraisal

  • Performance Improvement Actions and Skill Gaps
  • Training Needs
  • Performance-Based Rewards
  • Promotion
  • Career Path Planning
  • Staffing Plans
  • Skills Development
  • Process Improvement
  • MIS Improvement
This forms the basis for the performance appraisal system
a balanced scorecard measures progress against the strategic objectives
A Balanced Scorecard measures progress against the strategic objectives

Financial

Stakeholders

Borrowers

Internal

Private Sector

ad