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World Bank - The Matrix System at Work: An Evaluation of the World Banks Organizational Effectiveness

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World Bank The Matrix System at Work: An Evaluation of the World Banks Organizational Effectiveness
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The 1997 Bank reforms that introduced the matrix management concept aimed to adapt the organization to changing circumstances and address concerns among external stakeholders about the role of aid in development. The reforms were motivated largely by widespread recognition that the Banks development programs were excessively driven by a culture of lending, with insufficient attention to client needs and the quality of results, which are crucial to development effectiveness. A previous round of reforms in 1987 had strengthened the country focus, but quality remained a concern. Furthermore, access of developing countries to development finance from the private sector had increased significantly, leading to a decreasing share of official development aid, including Bank financing, in total flows to developing countries.

By the mid-1990s, pressure for change was acute. The 1997 reforms tried to address these challenges through a new set of organizational arrangements, increased decentralization, and matrix management. The most frequent rationale for a matrix structure is to balance competing priorities, combine capabilities for market advantage, share resources for efficiency, and retain flexibility to redeploy resources in the face of changing priorities and a diversified client base. The matrix system - a dual matrix, Bank-wide between the six Regions and four networks, and in each Region between Country Management Units and Sector Management Units - was to be facilitated by dual accountability for technical quality and an internal labor market for staff renewal and mobility. It has been more than a decade since the 1997 reorganization, and concerns that the matrix system is not delivering on its promise persist.

This evaluation assesses the extent to which the dual objectives of the matrix system - enhancing client responsiveness and establishing strong technical networks to deliver quality services - have been attained and have enhanced the Banks development effectiveness. The evaluation focuses on implementation of the current matrix system rather than on the 1997 matrix design and follows an objectives-based approach to assess the relevance and effectiveness of the matrix reform until 2010. To the extent feasible, the evaluation also examines the efficiency of matrix arrangements.

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The Matrix System at Work An Evaluation of the World Banks Organizational - photo 1
The Matrix System
at Work
An Evaluation of the
World Banks
Organizational
Effectiveness

The Matrix System at Work An Evaluation of the World Banks Organizational - photo 2

The Matrix System
at Work
An Evaluation of the
World Banks
Organizational
Effectiveness

2012 Independent Evaluation Group
The World Bank Group
1818 H Street NW, Washington DC 20433
Telephone: 202-458-4497
Internet: http://ieg.worldbankgroup.org
E-mail:

Some rights reserved

1 2 3 4 15 14 13 12

This work is a product of the staff of the Independent Evaluation Group (IEG) with the exception of the Management Response and the Chairpersons Summary. Note that IEG and the World Bank Group do not necessarily own each component of the content included in the work. IEG and the World Bank Group therefore do not warrant that the use of the content contained in the work will not infringe on the rights of third parties. The risk of claims resulting from such infringement rests solely with you.

The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of IEG, the World Bank Group, its Board of Executive Directors, or the governments they represent. IEG and the World Bank Group do not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of IEG and the World Bank Group concerning the legal status of any territory or the endorsement or acceptance of such boundaries.

Nothing herein shall constitute or be considered to be a limitation upon or waiver of the privileges and immunities of IEG or the World Bank Group, all of which are specifically reserved.

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This work is available under the Creative Commons Attribution 3.0 Unported license (CC BY 3.0) http://creativecommons.org/licenses/by/3.0. Under the Creative Commons Attribution license, you are free to copy, distribute, transmit, and adapt this work, including for commercial purposes, under the following conditions:

AttributionPlease cite the work as follows: IEG. 2012. The Matrix System at Work: An Evaluation of the World Banks Organizational Effectiveness. Washington, DC: World Bank. License: Creative Commons Attribution CC BY 3.0

TranslationsIf you create a translation of this work, please add the following disclaimer along with the attribution: This translation was not created by the Independent Evaluation Group or the World Bank Group and should not be considered an official World Bank translation. IEG and the World Bank Group shall not be liable for any content or error in this translation.

All queries on rights and licenses should be addressed to the IEG, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-3125; e-mail: .

ISBN: 978-0-8213-9715-2

e-ISBN: 978-0-8213-9716-9

Cover photo: Planetary matrix. Ocean/Corbis

Contents
ACKNOWLEDGMENTS
OVERVIEW
MANAGEMENT RESPONSE
CHAIRPERSONS SUMMARY: COMMITTEE ON DEVELOPMENT EFFECTIVENESS
ABBREVIATIONS
GLOSSARY
1. INTRODUCTION AND CONTEXT
Rationale and Purpose
Scope and Evaluative Questions
Literature Review on Matrix Organization
Evaluation Methodology
Notes
References
2. THE STRATEGIC ALIGNMENT OF SECTOR AND COUNTRY PRIORITIES
The Relevance of Strategic Alignment
Responsiveness and Effectiveness of Country Programs
Alignment of Country and Sector Strategies
Efficiency and Effectiveness of Strategic Alignment
Notes
3. THE PROMISE OF A KNOWLEDGE BANK
Introduction
Investing in Knowledge Production
Dissemination and Use of Knowledge
Tacit Knowledge Does Not Flow
Efficiency and Effectiveness of the Knowledge Bank
Notes
References
4. DELIVERING QUALITY SERVICES
Introduction
Institutional Incentives for Quality
Managing for Quality Under the Matrix System
Staff Incentives
Conclusions on Efficiency and Effectiveness of Quality Assurance Systems
Notes
References
5. INSTITUTIONAL ISSUES AND ORGANIZATIONAL STRUCTURE
The Sector Board Model
Span of Control in the Regions
The Effects of the SDN Merger on the Matrix System
Budgetary Incentives as a Driver of Matrix Behaviors
Quality Assurance and Conflicts of Interest
Key Findings and Conclusions
Notes
References
6. CONCLUSIONS AND RECOMMENDATIONS
Recommendations
References
APPENDIXES
APPENDIX A: MATRIX MANAGEMENT AND ORGANIZATION OF THE WORLD BANK IN HISTORICAL PERSPECTIVE
APPENDIX B: EVALUATION METHODOLOGY
APPENDIX C: RESPONSIVENESS AND EFFECTIVENESS OF THE BANKS COUNTRY PROGRAMS
APPENDIX D: EXPERIENCE IN THE TRENCHES: RESULTS FROM THE STAFF SURVEY
APPENDIX E: KEY FINDINGS FROM SECTOR MANAGER INTERVIEWS AND COUNTRY DIRECTOR/MANAGER INTERVIEWS
APPENDIX F: FOCUS GROUPS DISCUSSIONS: THE KEY FINDINGS
APPENDIX G: COMPARISON OF THE SIX REGIONAL MATRICES
APPENDIX H: WORKING ACROSS ORGANIZATIONAL BOUNDARIES: THE USE OF CROSS SUPPORT
APPENDIX I: BUDGETARY INCENTIVES
APPENDIX J: WORKING ACROSS SECTORS AND THEMES
APPENDIX K: WORLD BANK SECTOR STRATEGY PAPERS
APPENDIX L: INTERNATIONAL FINANCE CORPORATION 2013 CHANGE INITIATIVE
APPENDIX M: STAFFING DATA
APPENDIX N: MANAGERS INTERVIEWED
BIBLIOGRAPHY
BOXES
Box 2.1.Sector Strategy Papers at What Cost?
Box 3.1.Sector Manager Perspectives on Primacy of Lending
Box 3.2.Social Protection: A Model for Global Knowledge Management
Box 5.1.The New FPD Model: Creating Global Technical Practices
Box 5.2.Views on Matrix Issues of East Asia and the Pacific Staff Based in Sustainable Development Network Units
Box 5.3.
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