Results based management

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Results Based Management (abbreviated: RBM) is a management method through which managers determine the results that need to be achieved in a specific, clear and long-term, oriented manner. all efforts and activities toward achieving results effectively and efficiently.

Results-based management (RBM) in applied practice has created a turning point in improving effectiveness, efficiency, fairness, openness, transparency and accountability in the operations of organizations.

Results-based management (RBM) is applied in different scopes (individuals, departments, units, organizations, processes, programs, projects) and at different result levels ( output, output, impact).


1. Overview of results-based management (RBM)

Results-based management (RBM) was widely adopted in both the private and public sectors, in developed and developing countries in the 1990s. The general goal of Results-Based Management ( RBM) is to ensure that all efforts of individuals, departments, organizations and processes are directed towards achieving expected results. The practice of applying RBM has created a turning point in improving effectiveness, efficiency, fairness, openness, transparency and accountability in the operations of organizations.

Results-based management (RBM) in practice is applied at different scopes (individuals, departments, units, organizations, processes, programs, projects) and at result levels. different (output, output, impact).

Therefore, in documents written in English, Results-Based Management (RBM) is expressed by many different phrases such as: Performance Management, or Performance Based Management. performance), Outcome Management, or Outcome Based Management, Results-Oriented Management, or Results-Based Management. results-based management).

To date, there are many different definitions of Results-Based Management (RBM). However, the definitions all say that Results-Based Management (RBM) is a management method with a clear, specific and strategic vision, focusing on results (outputs, investment results). produce, influence), and direct activities toward achieving results effectively and efficiently. From there, it can be understood that Results-Based Management (RBM) is a management method through which managers determine specific, clear and long-term results that need to be achieved, orienting all activities. all efforts and activities into achieving results effectively and efficiently.


2. Characteristics of results-based management

Results-based management (RBM) has the following basic characteristics:

– Focus on results (outputs, outputs, impacts), processes and inputs. Results-based management (RBM) focuses on outputs (direct results), outputs (short- and medium-term impacts of outputs), impacts (long-term impacts of outputs). output or impact of output); At the same time, it also focuses on the processes to achieve these results and the inputs in the form of capabilities (the knowledge, skills and abilities expected from the groups and individuals involved).

 – Focus on results-based planning. Results-based management (RBM) focuses on results-based planning to direct an organization’s efforts toward achieving expected results and future success. This means, managers identify the desired future results and present them as specific goals in implementation plans. Results-based management (RBM) provides a clear framework for managers to conduct strategic planning and strategic management based on experiential learning and accountability in a distributed environment. , decentralization, decentralization.

– Focus on measuring and evaluating performance results. Practice shows that if managers cannot measure results, managers cannot manage results. Therefore, in Results Based Management (RBM), managers focus on measuring results and evaluating progress towards achieving expected goals. Results-based management (RBM) provides managers with a system for monitoring and evaluating performance results.

– Focus on continuous improvement of results. In Results Based Management (RBM), every part of the organization is always encouraged to make improvements to achieve ever-higher standards, and thereby provide increasing benefits and promote build better results. This means that managers clearly define the results the organization, group, and individual are aiming for and take steps to ensure that those expected levels of results are achieved. Continuous improvement, Armstrong and Murlis write, includes:  “Establishing a culture in which managers, individuals, and groups assume responsibility for continually improving task performance processes and are accountable for their own skills, abilities and contributions”.

– Focus on continuous development. Results-based management (RBM) focuses on creating a culture in which organizational and individual learning and development are a continuous process. Results-based management (RBM) provides the means to integrate learning with work, helping people learn from the successes and challenges inherent in daily activities. Results-based management (RBM) facilitates learning by communicating results to decision makers through feedback loops from continuous performance monitoring, evaluation, and auditing. This creates opportunities for learning at the individual, team and organizational levels to continuously transform the development organization in a direction that increasingly satisfies its stakeholders. Management decision-making processes can then be informed by reliable, valuable results information leading to greater effectiveness and efficiency.

– Pay attention to communication. Results-based management (RBM) focuses on communication. Results-based management (RBM) creates an atmosphere for continuous dialogue between managers and subordinates to define expectations and share information about mission, values ​​and goals. organization’s goals. Through this, establish a mutual understanding of the results to be achieved, and establish a framework for human resource management and development to ensure the achievement of results.

– Pay attention to stakeholders. Results-based management (RBM) focuses on satisfying the needs and expectations of all stakeholders of the organization – Government, management, employees, customers, suppliers and general public. In particular, employees are treated as partners in the organization, their interests are respected, their views are welcomed and listened to; They are encouraged to contribute to the development of goals and plans for the group and themselves. Results-based management (RBM) respects the needs of individuals and groups as well as the needs of the organization, and recognizes that these needs are not necessarily identical.

The key to the success of Results-Based Management (RBM) is the involvement of stakeholders throughout the management cycle such as in identifying desired results, assessing risks, monitoring progress develop, report on results and integrate lessons learned into management decisions.

– Focus on transparency and fairness. Transparency is needed to ensure that the benefits of Results-Based Management (RBM) principles are fully realised. Clearly defining the respective roles and responsibilities of stakeholders is necessary. Appropriate disclosure of the methods used to collect reliable and valid outcome indicator data is critical to fulfilling stakeholder accountability obligations. Widely disseminate and actively discuss information about results, including progress made towards achieving outputs, lessons learned and proposed adjustments, promoting learning within the organization.

illustration. Results based management

3. Results-based management (RBM) process

The term  “Results-Based Management”  (RBM) is closely related to systems theory, cause and effect theory, and takes into account the time dimension. Research documents on Results-Based Management (RBM) all say that Results-Based Management (RBM) includes elements such as inputs, activities or processes, and results. Depending on the scope scope and level of application of Results-Based Management (RBM), the names and concepts of these elements are somewhat changed. However, in the full model, the phrase  “Results”  is applied to the top three levels of the hierarchy in the logical framework: outputs, outputs, impacts. The lowest levels in the logical framework, such as inputs and activities, are not goals or results, but are the means to achieve those results.

The above logic model shows that inputs are needed to carry out activities to create outputs, and these outputs in turn create short- and medium-term results that lead to long-term impacts. . The constituent elements of Results-Based Management (RBM) are determined in relation to each other based on a cause-and-effect chain and in the time dimension; They cannot be used interchangeably, nor placed out of series, and the relationship between them is stable.

Thus, in Results-Based Management (RBM), managers must answer four important questions, which are:

[1] Why do we have to invest?

[2] What results do we hope to achieve from this investment?

[3] What needs to be created?

[4] How will this investment be made?

Results-based management (RBM) needs to be seen as a flexible and evolving process, not a rigid, standardized and bureaucratic system. According to common understanding, Results-Based Management (RBM) is a process that includes 5 basic activities:

– Planning: In this stage, managers identify expected results and decide what needs to be done and how to achieve those expected results, agreeing on goals and requirements. competencies needed to perform tasks to achieve expected results.

– Organizing implementation: In this phase, managers direct individuals, departments, and organizations to carry out assigned activities to achieve expected results according to the schedule determined in the phase. planning stage.

– Monitoring implementation: During this stage, managers continuously monitor whether what is being done is as expected in the plan or not, and provide continuous feedback on progress. towards the goals set out in the plan.

– Evaluate results: In this phase, managers conduct assessments to measure results during an implementation period including achievements, progress and problems; Outcome assessments provide the basis for the next phase of the continuum. Evaluate results, measure achieved results to evaluate the level of achievement of the goals set in the plan, draw lessons from experience and propose solutions to improve management activities. . To conduct monitoring and evaluation, it is necessary to establish a system for monitoring and evaluating results.

– Review results: At this stage, managers review what has been achieved, diagnose shortcomings in performance results, as well as in planning; On that basis, determine what additional work needs to be done and necessary corrective actions if results do not achieve as planned.


4. Benefits of results-based management

Results-based management (RBM) brings agencies and organizations the following basic benefits:

– First, Results-Based Management (RBM) defines for agencies and organizations a comprehensive and long-term vision, because it takes into account the long-term impacts of activities and processes; At the same time, it systematically and logically approaches the activities of agencies and organizations in the short, medium and long term.

– Second, Results-based Management (RBM) ensures that agencies and organizations operate effectively. Results-based management (RBM) focuses on results rather than just behaviors and activities. In previous management methods, managers often viewed the behaviors and activities of agencies and organizations as results. Therefore, an employee may be very busy but may not necessarily contribute to achieving the goals of the agency or organization; Meanwhile, the manager can still conclude that this employee is very dedicated to the agency and organization and works very hard, thus deserving a high emulation rating.

– Third, Results-based Management (RBM) optimizes the activities of agencies and organizations. Results-based management (RBM) links an organization’s activities and processes with its overall goals to improve its performance. Results-based management (RBM) ensures that all parts of an organization are working towards achieving the organization’s results as effectively as possible.

– Fourth, Results-Based Management (RBM) is a prerequisite for implementing performance-based pay, because it creates meaningful measurements of performance results. This will be the basis for evaluating the achievements of each employee, each department, each unit and the entire agency and organization; It provides a basis for ranking agencies and organizations or establishing standards for comparison between agencies and organizations.

– Fifth, Results-Based Management (RBM) is the basis for applying a results-based budget allocation system and innovating planning in agencies and organizations. According to this management method, managers clearly determine the desired results of agencies, organizations, departments, processes, programs, projects and employees; At the same time, it helps determine the input costs necessary to achieve those results. Results-based management (RBM) creates commitment from agencies and organizations to assigned resources and helps use these resources effectively.

– Sixth, Results-based Management (RBM) promotes coordination and cooperation within agencies, organizations and with the outside. Results-based management (RBM) not only promotes the process of continuous feedback and dialogue about the common goals of the agency or organization, but also strengthens relationships and exchanges between individuals and organizations. department within an agency or organization, supporting information between subordinates and superiors, but also focusing on the needs of internal and external customers.

– Finally, the most important benefit of Results-Based Management (RBM) is that it contributes to changing the behavior of workers and managers in agencies and organizations; Direct all members of the agency to focus on thinking about the results that need to be achieved by answering questions such as: What results do we need to create? Who do those results serve? What impact do they have on society? How to achieve those results most effectively? At the same time, it strengthens the internal and external accountability of managers.


5. Common management methods in history

Historically, States have focused their attention on human, technical, and financial resources as inputs for activities, programs, and projects, known as centralized management. Focus on input. According to this management method, budget allocation for activities, programs, and projects is based on expenditure items on an annual basis, instead of budget allocation based on medium and long-term results that the activities, programs, and projects created.

The consequence of this management method is that state agencies and organizations increasingly tend to increase the number of programs and projects to increase budgets and find ways to disburse funds regardless of the outputs of the projects. Do activities, programs, and projects create positive outputs and impacts on society? The next step in the development of management is to focus on activities or processes.

Program Management By Action (PMBA) attracted attention in the 1970s and 1980s when donor organizations became deeply involved in infrastructure development projects. and industrial development projects. Activity-based program management has incorporated a number of tools and techniques for planning and scheduling activities, such as Work Breakdown Structure (WBS), Gannt Charts, Critical Path Method (CPM), Program Evaluation and Review Technique (PERT).

These techniques focus on performing activities according to a predetermined schedule and originate from the fields of construction engineering and systems management. Furthermore, States try to streamline the administrative process by implementing administrative procedure reforms, which Vietnam has been trying to do over the past two decades is a testament to this management method.

Management by Objectives (Management By Objectives, abbreviated: MBO), in the 1970s, had a strong resurgence. Management by objectives (MBO) is a process of setting goals within an organization in which managers and employees agree on goals and understand how to achieve them. Management by Objectives (MBO) allows managers to assume responsibility for designing and implementing a plan, program, or project under controlled conditions by setting goals and identifying indicators. result number; At the same time, it provides public organizations with a tool for control and predictability while still being able to delegate responsibility to individuals and groups.

The Logframe Approach (abbreviated: LFA) was most commonly applied in the 1970s, by the US Agency for International Development (USAID). Since its widespread acceptance and adaptation by the international donor community, the Logical Framework Methodology (LFA) is used primarily as an analytical tool for project design and approval. judgment. However, its enormous potential for monitoring and evaluating outcomes is not fully realized.

Goal-oriented project planning (Ziel Orientierte Projekt Planung – ZOPP), an alternative to the Logical Framework (LFA), developed by the German Development Agency (GTZ), includes standard procedures for Participatory analysis, problem solving and goal setting with partner organizations and target groups. The diverse use of logical framework methods over the past decades is a testament to the enduring power of this approach.

New Public Management (NPM) in the 1980s led to increased efforts to become a customer- and service-oriented State, giving rise to the development of many standards. quality service. Thereby, it created a new wave of methods and techniques immediately following, including: quality assurance or quality control, ISO (International Standard Organization) accreditation, Total Quality Management. (Total Quality Management – ​​TQM)… whose most important part is focusing on the service delivery process, quality standards and accepting continuous improvement goals. At the same time, it is also concerned with establishing indicators to measure the results and efficiency of public service delivery, increasing State control over quality, strengthening accountability and improving service delivery. customer service.

Modern management requires a major shift in focus where public service managers hope to identify expected results, focus attention on achieving results, measure regular and objective results, learning from experience information about results, making adjustments and improving the effectiveness and efficiency of programs – this management method is called RBM.

Since the 1990s, States around the world have continuously been under pressure for greater transparency and accountability from the people in the use of public resources; Public concern, growing budget deficits, declining trust in political leadership, and the need for more transparent and accountable governance are important factors contributing to the emergence of Results-Based Management (RBM) in the public sector. Many countries around the world, especially those in the Organization for Economic Cooperation and Development (OECD), use Results-Based Management (RBM) as a means to promote good governance and regional management. The public sector is results-oriented.

In summary, over the decades, there has been a shift in the focus of the public sector management approach from inputs, to activities, to process control, to outputs (goals), and outcomes. fruit. “Results-Based Management (RBM) is clearly an evolution in management and not a revolution”  – meaning that Results-Based Management (RBM) is founded on legacy and develop previous management practices.

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