Part of Chapter 5 - In Pursuit of Sustainable Economic and Social Development
The following five lessons were key elements for the development of the CRF 2016–2019. (discussed in more detail in Section III of the CRF 2016–2019 document).
1. Taking ownership
Ownership across all levels of the Bank is a key ingredient to make the CRF a meaningful tool for managing for development results. Both the Board and IDB staff were actively engaged in the development of the updated CRF and thanks to internal process changes, will continue to be engaged in monitoring progress against CRF targets.
2. Defined focus
The CRF should focus on measuring the highest-level strategic priorities identified by the Bank’s shareholders — that is, the three key challenges and three cross-cutting issues, as well as the six guiding principles set forth in the Update to the Institutional Strategy (UIS).
3. Management Tool
The CRF must be used not only for accountability but also for managerial purposes. By promoting a greater understanding of the factors underlying variations in performance (as captured by underor over-performance as compared to the CRF target) and encouraging greater transparency with respect to the specific projects or business units that contribute to each of its targets, the CRF can help guide the Bank towards achieving the goals set forth in the UIS.
4. Knowledge Management
Improved CRF knowledge management — for example, in terms of documenting indicator definitions, as well as assumptions for baselines and targets, and making widely available, can greatly enhance transparency and data quality, and maintain institutional memory in the face of employee turnover. In addition, having the systems in place to measure and monitor the Bank’s output contributions has allowed for more accurate target-setting in the Updated CRF 2016–2019.
5. Staying relevant
Striking the right balance between flexibility and stability is crucial to ensuring that the CRF maintains its relevance as a performance measurement instrument. To this end, the IDB Board of Governors delegated the authority to the Board of Executive Directors to approve the CRF 2016–2019 as well as any subsequent updates to it. While major changes are not expected from year to year as the CRF must remain stable enough to truly measure progress, the ability to introduce improvements during the reporting period is expected to enhance the usefulness of this tool.
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