Introduction to RBM
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This document provides an introduction to Results Based Management (RBM). It began in the 1960s and was adopted by many countries in the 1980s and 1990s. RBM focuses on tangible results, resource allocation, and value. Key concepts include inputs, activities, outputs, and outcomes. Performance is measured by indicators like effectiveness, efficiency, equity, and sustainability. RBM is integral to capacity building by driving continuous improvement through performance information. The diagnostic approach begins with performance analysis to identify gaps and determine constraining variables to develop an organizational development plan.
Introduction to RBM
- 1. Results Based Management Introduction to Results Based Management
- 2. Origins of Results Based Management? • Began with Peter Drucker and MBO in 60s • Evolved into the Logical Framework for the Public Sector in 70s • Adopted vigorously by UK and New Zealand in 80s and USA and OECD countries in 90s • Formally became one aspect of New Public Management in 90s • Is now being adopted to direct and justify increased development aid.
- 3. What is Results Based Management • Focuses on tangible results to be delivered • Clarifies Clients and Mandate of Organization • Promotes Benchmarking and Performance Analysis • It emphasizes value-for-money
- 4. Why Results Based Management? • The public want better services • More effective resource allocation • Private sector seeks improved infrastructure and services • The public sector agency wants to perform more efficiently and effectively
- 5. Starting Point is Performance/ Results • Why does this organization exist? • What would be lost if it did not exist? • Who does it serve? • What is it supposed to deliver for them?
- 6. Alternative Approaches to Managing Performance Management by Inputs/Activities • Success is measured by expenditure and/or extent of activity. (How much did we spend on this workshop?)
- 7. Alternative Approaches to Managing Performance Management by Outputs • Success is measured by the extent of goods/services delivered and the ratio of inputs to outputs.
- 8. Alternative Approaches to Managing Performance • Success is measured by effects/impacts achieved, and their sustainability. (What were the concrete agreements arrived at? - After six months: Have these been fulfilled? - Is the quality of Performance Management improving?)
- 9. Recent Approaches to Performance (Results) Management • Input - Output - Outcome Indicators • Client Satisfaction Surveys • Balanced Scorecard Approach
- 10. Key RBM Concepts Inputs _____ Outputs Outcomes Activities
- 11. Key RBM Concepts Input / Activities = Used to Produce Outputs Outputs = Produce or Service Delivered Outcome = Result or Effect or Impact of the Output KRA = Operating Areas in which outputs have to be delivered
- 12. Outputs / Outcomes • Outputs are generally under direct control of agency • Outcomes are not under complete control - are subject to numerous other influences - only surface over time - hence, attribution becomes an issue
- 13. Intermediate Final Inputs Outputs Outcomes Outcomes New WS Access to System Drinking Water Reduced • Staff New Waste Proper Garbage Infectious • Resources Mtg System Disposal Diseases Health Personal Education Cleanliness Program
- 14. Public Sector Performance • At a National Level • At a Sector Level • At an Institution Level • At a Project Level
- 15. Client Satisfaction - The Report • Covers Essential Services • Focus on Processes, Outputs, Outcomes • Uses Sample Surveys
- 16. Composite Result Indicators • Effectiveness Ratio of inputs to outcomes achieved • Equity Extent of access to service by different clients groups • Efficiency Ratio of inputs to outputs • Sustainability Ability to sustain operations financially
- 17. Integral to Capacity Building • RBM drives continuous performance improvement • Performance information of RBM is essential for CB - benchmarking, performance shortfalls, cause analysis • Can’t do meaningful CB without RBM
- 18. The Diagnostic Approach • Begins with the analysis of performance • Identifies critical performance gaps or opportunities for improvement • Works back to identify variables influence performance • Develops an Organization Development Plan to address constraining variables
- 19. Begin with Expected Results • ‘Performance Report’ is essential • Identify performance variances in order of priority • If performance variance is not clearly identified - diagnosis is not possible - capacity building initiative will be directionless
- 20. Performance Variance Expected Performance …… variance Actual Performance Expected performance ……… variance Actual performance
- 21. Category 1 Factors - Clarify of Results Outputs Outcomes
- 22. Category 1 Factors - Results / Performance Expectations • Are performance results specified? • Are there clear standards and / targets? • Are performance results monitored and analyzed for improvement? • Is performance periodically reported? • Is performance periodically audited?
- 23. Category 2 Factors - Resources Resources Results • Staff / Skills • Budgets • Technology Outputs Outcomes •Equipment •Physical Assets
- 24. Resources and Performance • The ‘Wheels’ on which the organization runs • Proportionality between Inputs and Outputs - Efficiency: ratio of outputs for each unit of input - Effectiveness: ratio of outcomes for each unit of input
- 25. Focus on Resources • Resources are often the first and only focus of some CB strategies • Typical CB strategies resorted to are - staff increases - training - computerization - increased operating budgets
- 26. Category 3 Factors - Management Infrastructure Management Infrastructure System + Structure + Strategy (Processes) (Policy) Resources •Staff •Budgets Outputs Outcomes •Technology •Equipment •Physical Assets
- 27. Structure • Clarity of Accountabilities & Reporting Relationships • Span of Control • Level of Delegation • Quality of Outreach to Client • Checks and Balances • Structure can complicate Processes
- 28. Systems and Processes • Planning and Decision Making Systems • The Client Interface System • The Product Delivery System • The Financial Management System • The HR Management System • The Information Management System • Performance Monitoring and Reporting System
- 29. Structure • Clarity of Accountabilities & Reporting Relationships • Span of Control • Level of Delegation • Quality of Outreach to Client • Checks and Balances • Structure can complicate Processes
- 30. Systems and Processes • Planning and Decision Making Systems • The Client Interface System • The Product Delivery System • The Financial Management System • The HR Management System • The Information Management System • Performance Monitoring and Reporting System
- 31. Vision (Leadership) • Is the “Core Ideology” • Primary Driver • Impels Change & Results • Is the priority accountability of leadership • Is the clearest reflection of quality of leadership
- 32. Typical Values • Quality Consciousness • Client orientation • Teamwork • Innovation • Openness to Change
- 33. Values - Culture • The fundamental Guiding Principles • The unsaid but expected behaviors • The ‘norms’; what is considered important • The favored patterns of interaction • The way we do things around here • The ‘management style’
- 34. The Drivers Vision and Values OR Leadership and Culture • Efficiency is a function of Management Infrastructure • Effectiveness is a function of Leadership and Culture
- 35. Organization Model for Diagnostic Analysis Vision Values Systems Structure Strategy Resources Results