Smart Toolkit for evaluating information projects, products and services

Results-based management - also sometimes referred to as 'performance management' or 'outcome measurement' - is a project planning framework that seeks to address the growing demand for evidence that funded activities are producing long-term benefits.This demand comes especially from publicly funded organisations.

In the evaluation context, it reflects the move away from focusing on evaluating the input side of a project (e.g., financial efficiency, use of human resources) to evaluating the output side, giving more weight to how a project affects the lives of its primary stakeholders. Among the organisations that are leading proponents of results-based management are the World Bank, USAID and CIDA. For project managers it is a very useful tool for managing and monitoring projects. For beneficiaries, it is an indicator of what exactly they should expect from a project. And for evaluators, it is the most straightforward way of assessing the outcome of a project.

WHY?
Results-based management is the best way to link performance measures to the intended result of a project.The establishment of specific intended results at the planning stage facilitates the later stages of management and monitoring and, most importantly, makes an evaluation study relatively easy to carry out.

HOW?
Organisations vary in the way they carry out results-based management, but in all cases the focus is
on achieved results.This is ensured by:

• analysing the existing situation
• clearly identifying specific objectives
• choosing the strategy for meeting objectives
• determining the success criteria
• analysing the assumptions and the potential hindrances to success

Results-based management is seen as an essential link between evaluation and planning.When an evaluation is carried out during project implementation, the results can be fed into the ongoing planning process.When an evaluation is carried out at the end of a project, the results can be fed into subsequent strategic planning and reporting. We will look first at the framework itself, and an example of how to apply it.We then discuss results-based management within the context of monitoring and evaluation.

The framework
Results-based management relates to the way an organisation is motivated and how it applies processes and resources to achieve targeted results. It generally refers to outcomes that convey benefits to the community.The key issue is that results
differ from activities. Many people, when asked what they produce, describe their activities rather than the results of their activities (the products). The main features of results-based management are:

• specified results that are measurable, relevant and can be monitored
• resources that are adequate for achieving the targeted results
• organisational arrangements that ensure that responsibilities are aligned with results and resources
• processes for planning, monitoring, communicating and resource release that enable anorganisation to convert resources into the desired results

The assumptions in a results-based management framework are exactly the same as those for the logframe. No project is independent of what is happening in its environment, and much of what does happen is beyond the control of the project officer. Understanding and assessing the important assumptions in a project environment is an essential part of good project design. Failure to realistically identify, address and continuously monitor assumptions is a common reason for project failure.

Figure 3.5
The results-based management framework

An example of applying results-based management is given in Box 3.6.The example highlights two important characteristics of results-based management:

• This approach differentiates between achievements (results) on the one hand, and activities and implementation on the other. In the example, conducting the primary survey to assess people’s views and levels of knowledge, preparing the project materials and raising awareness of the project are all part of the activities - they should not be considered as achieved results.
• This approach emphasises the need to determine what the project intends to achieve. In the example, if it aims only to increase people’s knowledge of the importance of using clean water, then the project can’t be held accountable if none of the farmers has stopped using irrigation water for cooking purposes. If the aim is to change farmers’ behaviour, then the result that counts here is the number of farmers who started using clean water.

Box 3.6
An example of the application of the results-based management approach

Using the results-based management approach,Table 3.8 lists eight questions you could use to describe your project.This is a useful exercise in learning how to be clear, concise and specific about the envisaged results of your project.

Table 3.8
An exercise in describing a project using results-based management

Monitoring and evaluation
Results-based management advocates that, to become truly results-oriented, monitoring and evaluation needs to be aligned with annual plans and other work plans of the implementing organisation. It helps the organisation to focus on achieving outcomes, with the emphasis on the effective use of resources, not just their efficient use.

Monitoring
Monitoring is generally described as the collection of data over time, as described in Part 2. It helps to identify day-to-day problems during the implementation of activities. It looks at whether the activities are likely to achieve the planned target and, if not, what corrective measures need to be taken before the evaluation. Results-based management places strong emphasis on monitoring. In this approach, the acronym used to describe a good indicator is clear, relevant, economic, adequate and easily monitored (CREAM).
The key issues here are:

• results information needs at the project, programme and policy levels
• the demand for results information at each level should be identified
• results information should move both horizontally and vertically in the organisation
• the responsibility at each level for data collection needs to be clear

Evaluation
The key evaluation questions that are addressed by the results-based management approach
are:

• Strategy: Are the right things being done, strategically? This relates to rationale and a clear theory of action
• Operations: Are things being done properly? This relates to effectiveness in achieving expected outcomes, efficiency in optimising resources, and client satisfaction
• Learning: Are there better ways to do things? This relates to alternatives, best practice and lessons learned

Results-based management prescribes four instances that warrant gathering evaluation information to support management decision-making:

• divergence between planned and actual performance
• need to differentiate between the contributions of design and implementation to the outcomes
• need to determine what is or is not working efficiently and effectively
• conflicting evidence of the outcomes

Box 3.7
Some key points in constructing a results-based management framework

Box 3.8
The strengths and weaknesses of the results-based management approach