Terms of Reference s37

ETHIOPIA

CAPACITY BUILDING FOR DECENTRALIZED SERVICE DELIVERY PROJECT

Performance And Service Delivery Improvement Program

Sample Terms of Reference for Preparation of a Strategic Plan for Route 2

Introduction

.1 The CBDSD project's overall objective is to assist Ethiopia in enhancing service delivery performance by building public sector capacity at the federal, regional and local levels of the country's decentralized system. Building public sector capacity through institutional reforms, systems development, and training will promote effective policy formulation and implementation, particularly in sectors critical to poverty reduction such as infrastructure, health, and education. The project will help improve decentralized service delivery through a coordinated program of (i) civil service reform, (ii) strengthening supply-side of sub-national capacity building, and (iii) local government restructuring and empowerment. During the 3-4 year life of CBDSD, this coordinated support program will be implemented with selected federal, regional and local government entities. In response to GOE’s request, the project is on an accelerated preparation schedule aimed at credit effectiveness by mid-2002.

.2 The project’s first component, civil service reform, is designed to assist in the completion of the “prototyping phase” of the ongoing Civil Service Reform Program (CSRP) and prepare for its full implementation at the federal and regional levels. The second and third components of the project represent a new direction for the GOE/Bank partnership and are critical to the GOE’s heightened emphasis on decentralized service delivery through rejuvenated municipalities and empowered woredas. Significant institutional reform has recently been undertaken at the federal level including creation of the Ministry of Capacity Building (MCB) and of the Ministry of Federal Affairs (MFA), the latter of which is charged with facilitating capacity building--with regional authorities-- for municipal local governments throughout the country.

.3 As a spearhead of the Government’s reform program, the Performance and Service Delivery Improvement (PSIP) aims at promoting result-oriented performance in ministries, agencies and bureaus (MAB) in exchange for focused capacity building support. Specifically, PSIP requires a set of prior actions from MABs such as review of organizational performance and agreement on indicators, development of action plan for restructuring, capacity building, and performance improvement within an agreed timetable. A fund has been established under the CBDSD project to provide resources as incentives for MABs to carry out performance and service delivery improvement initiatives on the basis of an agreed action plan. MABs will access resource from the fund through a process-based framework. Individual MABs will apply and be selected for either the Client Service Route of PSIP implementation (focusing on a particular area of improvement) or the Strategic Planning Route (focusing on a comprehensive program of organizational improvement). Task Objective

.4 The objective of this TOR is to provide prior assistance to the Ministry of (or the Authority) to prepare a comprehensive strategic and organizational improvement plan as a basis for implementation of PSIP Route 2.

Task Background/Scope of Work

.5 A variety of performance problems were identified during the Client Report Card/Survey exercise and related focus group discussions undertaken by the Ministry of (or the Authority) around the provision of the (type of services reviewed). These include . The MAB has decided to embark on a program of comprehensive strategic planning and organizational improvement in order to address these service delivery problems and the organizational constraints that contribute to them.

.6 In order to demonstrate its readiness for participation in PSIP Route 2, the MAB is seeking consultancy services to undertake the following activities in participatory manner:

 Examine the overall performance of the Ministry in terms of processes, intermediate outputs, and results, and services delivered (building on the Client Report Card’s findings);

 Conduct an organizational diagnosis/functional review which includes a situational analysis, review of mission and objectives, functions, organizational structures, staff numbers and skills, and core management systems (e.g. EMC, HRM) developed under the CSRP. This should include: o A review of the following management processes affecting MAB performance: - Management structures (at ministry, directorate/division, individual levels) - Budget preparation and execution - Staff recruitment, selection, promotion, and deployment - Employee recognition and rewards, and career paths - Service delivery arrangements including whether whether in-house provision vs. various forms of contracting out or contracting in service provision functions have been considered, whether sufficient number of alternative suppliers can be identified in the market, and estimate cost efficiency gains of various alternatives; o An assessment of the ministry’s organization culture (such as core values, management style, esprit de corps) which hold these processes and practices in place.

 Assist in preparation of a costed 3-yr organizational improvement plan that establishes outcome-oriented objectives, lays out a strategy for accomplishing them including: o 3 year output based performance targets and establishing accountability for these targets o A simple performance management system for the Ministry of (or the Authority) linked with Public Expenditure Program and the annual budget process, which aims to strengthen ministries’ existing planning and review processes o Restructuring plans for the relevant MAB within annual and medium term budgets o Organization and work unit incentives to improve performance (e.g., retention of savings, linking cost center budgets to performance, outsourcing or autonomization or corporatization of specific services) o Procedures for reviewing actual performance against these targets on a regular basis, and advise on essential information systems to generate data on performance o A Client Service Charter to establish appropriate service delivery targets o An action plan/Gantt chart of the range of technical assistance, training, study tours, retooling, contracting in/out of specific functions, as well as IT and IEC activities that are necessary to implement the plan

Qualifications

.7 The assignment will require the services of international and local consultants with technical competence in public management and management consulting, a track-record in undertaking functional reviews, knowledge of various modern management techniques and approaches to facilitation. In addition, the following qualifications will be required:

 PhD/MSc/MBA in Public Management or Administration, Finance, and Public Policy or equivalent experience.

 A minimum of 10-15 years’ experience as a consultant or equivalent in the implementation of civil service reforms, agency creation, performance improvement and measurement, restructuring, and/or change management.

 Experience in implementation support for other World Bank and donor programs.

 Strong communication and writing skills, track-record as a team player.

Estimated level of effort and cost .8 The consultancy should be undertaken within no more than 50-60 person days at a cost of approximately US40,000-USD50,000.

Mode of payment

.9 Payment will be effected on a lump sum against deliverables.

Deliverables and Reporting

.10 The key deliverables for the consultancy include a final organizational assessment or functional review as well as a strategic plan and the costed organizational improvement plan. Copies of the document will be provided to the CSRP CO, relevant MAB, and the World Bank.

Annex I. Steps for Development of a Strategic Plan

Step Key Questions 1. Situation Analysis  Is our current mission clear? Is it appropriate?  What are the mandates that we are required to execute by law?  What opportunities and threats do we face in our external environment?  What do our clients think about our services?  What are our internal strengths and weaknesses?  What critical issues do we need to address in the next 5 years? 2. Mission and Strategic  How do we need to change our current mission? Objectives  What are our long-term goals and objectives?  When do we think we can achieve them?  What are our priorities for tomorrow? 3. Strategies  What broad approaches will enable our objectives to be achieved?  When do we make the change?  What resources do we need?  What skills do we need? 4. Bridges & Barriers  What will hold us back from making the change?  What will help us to drive the change forward?  How can we capitalize on the “drivers” and minimize the constraints? 5. Service Delivery  What results must each division achieve to deliver our long- Targets term objectives?  What targets should each division be striving to achieve next year in order to improve services?  How will we measure whether these targets have been met? Annex II. Client Service Charters and Social Pacts

.11 The Client Service Charter is social pact that helps MABs ensure that service providers in its sector - local authorities, hospitals, schools, or its own divisions - have made agreements with their clients or customers on the levels and quality of services which they can expect. The Social Pact will place obligations on those responsible for delivering services: at the same time, it will also set out the responsibilities of people as clients or customers since they have a role to play in helping providers to improve services.

.12 Social Pacts are mechanisms for ensuring that service providers are held accountable. Under them, clients may expect public services to:-

 publish standards of service  be more open and provide more information  provide for choice and consultation wherever possible  be always courteous and helpful  make amends when things go wrong  give value for money]