The Matrix System at Work An Evaluation of the World Bank’s Organizational Effectiveness April 2012 The Matrix System at Work An Evaluation of the World Bank’s 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: [email protected] All rights reserved This volume is a product of the staff of the Independent Evaluation Group (IEG) of the World Bank Group. It is part of an ongoing series that reviews global and regional partnership programs in which the World Bank is engaged as one of the partners. The findings, interpretations, and conclusions expressed in this volume do not necessarily reflect the views of the Executive Directors of The World Bank or the governments they represent. IEG does not guarantee the accuracy of the data included in this work. 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How to cite this report: IEG (Independent Evaluation Group). 2012. “The Matrix System at Work: An Evaluation of the World Bank’s Organizational Effectiveness.” Cover photo: Planetary matrix. ©Ocean/Corbis ISBN-13: 978-1-60244-213-9 ISBN-10: 1-60244-213-4 Independent Evaluation Group Strategy, Communication, and Learning (IEGCS) E-mail: [email protected] Telephone: 202-458-4497 Facsimile: 202-522-3125 Printed on Recycled Paper Contents ABBREVIATIONS ................................................................................................................................ VII ACKNOWLEDGEMENTS ...................................................................................................................... IX GLOSSARY ........................................................................................................................................... XI OVERVIEW .......................................................................................................................................... XV MANAGEMENT RESPONSE ...................................................... ERROR! BOOKMARK NOT DEFINED. 1. INTRODUCTION AND CONTEXT ...................................................................................................... 1 Rationale and Purpose .............................................................................................................................................. 1 Adapting the Bank to Changing External Realities .................................................................................................................... 3 The 1997 Matrix System .......................................................................................................................................................... 3 Significance of the Matrix System ......................................................................................................................................... 6 Scope and Evaluative Questions .............................................................................................................................. 8 Scope of the Evaluation ......................................................................................................................................................... 8 Evaluation Questions ........................................................................................................................................................... 10 Literature Review on Matrix Organization ............................................................................................................... 12 Relevant Literature on the World Bank ................................................................................................................................ 12 Insights from the Private Sector .......................................................................................................................................... 13 Bank Management’s Self-Assessment of the Matrix System .............................................................................................. 14 Evaluation Methodology .......................................................................................................................................... 15 Evidentiary Basis ................................................................................................................................................................. 15 Limitations of the Evaluation ................................................................................................................................................ 16 Organization of the Report .................................................................................................................................................. 17 2. THE STRATEGIC ALIGNMENT OF SECTOR AND COUNTRY PRIORITIES ................................. 18 The Relevance of Strategic Alignment .................................................................................................................... 18 Assessing Strategic Alignment ............................................................................................................................................... 19 The Role of Country and Sector Strategies ............................................................................................................................. 20 Responsiveness and Effectiveness of Country Programs ...................................................................................... 23 Responsiveness and Effectiveness by Region .................................................................................................................... 26 Insights from CASCR Reviews ............................................................................................................................................ 26 Alignment of Country and Sector Strategies ........................................................................................................... 27 Integration of Country and Regional Experiences in Sector Strategies .............................................................................. 27 Integration of Sector and Global Strategies in Country Strategies ...................................................................................... 28 Incorporation of Global and Regional Issues in Country Strategies .................................................................................... 31 Mainstreaming of Corporate Priorities into Operations ....................................................................................................... 33 Efficiency and Effectiveness of Strategic Alignment ............................................................................................... 34 i Costs of Country and Sector Strategies .............................................................................................................................. 34 Feedback From Clients ....................................................................................................................................................... 35 3. THE PROMISE OF A KNOWLEDGE BANK ..................................................................................... 37 Introduction ............................................................................................................................................................. 38 The Knowledge Bank .......................................................................................................................................................... 38 Knowledge Needs to be Pooled and Shared ...................................................................................................................... 39 Assessing the Bank’s Knowledge Work .............................................................................................................................. 40 Investing in Knowledge Production ......................................................................................................................... 41 Primacy of Lending Delivery ................................................................................................................................................ 41 The Bank’s Core Knowledge Products ................................................................................................................................ 42 A Trend Toward Just-in-Time Knowledge ........................................................................................................................... 43 Dissemination and Use of Knowledge .................................................................................................................... 43 Dissemination of Knowledge ............................................................................................................................................... 43 Use of Knowledge Produced by Other Operational Units ................................................................................................... 48 Knowledge Produced by DEC is Rarely Used by Operational Units ..................................................................................