CDC - Partnership and Harmonization TWG

II. Methodology: Principles and Approaches to Capacity Development

Defining Capacity Development

2.1 There is an increasingly significant global body of work emerging on capacity development, organisational reform and change management. This literature combines theoretical foundations with empirical evidence across a wide range of countries, contexts and periods. Noting that capacity development is often ill-defined and conceptually vague, it is therefore useful for CRDB to draw from this body of work when considering its Capacity Development Strategy, in particular to define capacity as a starting point.

2.2 For the purposes of CRDB, therefore, capacity is defined as:

“the ability of CRDB as an organisation, and of its management and staff as individuals, to perform their mandated functions, and to set and achieve their policy objectives”

2.3 Capacity development can therefore be viewed as a process to strengthen, create, adapt and maintain this capacity over time.

Guiding Principles for Effective Capacity Development

2.4 A number of important lessons have been derived from the national and global experience and used to inform the methodology that has been taken by CRDB. The Capacity Development Strategy methodology was discussed by staff at a retreat in August 2006 and the discussion included reference to the following guiding principles that must inform both the production and implementation of the Strategy:

a) Capacity development is a long-term process
While this Strategy is to be implemented during the period 2007-10, it is appreciated that some transformations are necessarily longer-term, especially when viewed in the context of public service reform in Cambodia and the binding human and financial resource constraints that apply. The Capacity Development Strategy therefore attempts to identify a consistent but flexible approach that can be maintained over the medium-term – although there may be some 'quick wins', 'quick-fixes' are to be avoided.

b) Capacity development must be implemented in a conducive environment
Change at organisational level is, in part, dependent on an aggregation of changes in individual mindsets and behaviour. To promote this change, it is necessary to perceive capacity development as a positive opportunity for development, in which initiative is encouraged and rewarded, and in which all staff feel that their contribution is both appreciated and acknowledged. Capacity development is therefore about changing mind-sets as well as augmenting skills.

c) Capacity development must build on existing structures
Recognising that there are strong existing foundations, CRDB will use, to the maximum extent possible, existing structures and organisational arrangements. These include existing information systems, dialogue mechanisms and some aspects of organisational management practices. A strong existing base of individual competence in CRDB provides the 'critical mass' that is required for success.

d) Capacity development must consider incentives
"A fair day's work for a fair day's pay" is an important acknowledgement that is borne out empirically in reform programmes both within Cambodia and elsewhere. Incentive and motivation considerations must therefore take account of monetary incentives, but the CRDB Strategy will also consider the non-financial side of incentives, including measures to provide an enabling, enjoyable and fulfilling working environment and to provide opportunities for training and career advancement.

e) Capacity development must be an internally-driven participatory exercise
Too many models of capacity development have been informed by Northern perspectives (and Advisers) and imposed on a passive Southern 'beneficiary'. Most, if not all, have failed. CRDB intends to be the architect and engine of its own Strategy, recognising the realities that require some degree of capacity substitution, but retaining the leadership and initiative to articulate its own pace and direction. Regular opportunities for all staff to come together to consult with others and to discuss progress will be provided, including, to the fullest extent possible, using South-South models of cooperation to inform the capacity development process.

f) Capacity development must be an objective and monitorable process
While capacity development is a process, rather then the delivery of a package of goods and services, it is useful to develop a set of indicators to be used at all levels to quantify improved performance or the achievement of results. This helps to identify and manage risk, as well as to provide an objective basis for monitoring progress, evaluating results and applying lessons to future work.

Conceptual Approaches to Capacity Development

2.5 Three broad approaches to the concept of capacity have been considered. These relate to the institutional, organisational and individual levels of capacity, as well as to approaches to strengthen them.

2.6 At an institutional level, it is necessary to assess the legal and administrative framework for aid management, considering the "rules of the game", the structures that determine how it is played and the roles assigned to each of its players. Institutional capacity is important as it provides sustainability and continuity over and above the individuals that perform related functions, promoting accumulated knowledge and reducing dependency on single individuals.

2.7 In the aid management context, institutional capacity relates in particular to the mandate that establishes CRDB; the Strategic Framework for Development Cooperation Management, which elaborates its role and the role of others in national aid management; and the national aid management 'architecture'.

2.8 At an organisational level, the objective is to consider the structures that are in place to manage ODA, including: the Cambodia Development Cooperation Forum (CDCF), which was formerly the Consultative Group; the Government-Donor Coordination Committee (GDCC); and the Technical Working Groups (TWGs). The internal organisation of CRDB is also considered, as well as its relationship to the external environment. The Capacity Development Strategy must consider the distribution of staff against key functions, management arrangements and workflow processes that govern the conduct of work and the monitoring of performance (at CRDB, Department and individual level). It is also important to reflect on the systems that are in place to manage and store information and the communication strategies that share knowledge and information across the organisation. This analysis will ensure that support to individuals will aggregate up to ensure that 'the whole is greater than the sum of the parts'.

2.9 The more traditional individual level of capacity development primarily looks at how to develop human resources. This will consider the placing of staff within the organisational structure so that all key functions are performed, consistent with the organisation's mandate. This is then followed by 'gap-filling', considering skills profiles and training needs based on job descriptions, as well as other strategies that can be used to endow individuals and the organisation with the skills required to fulfil its mandate.

The CRDB Approach to Capacity Development

2.10 The CRDB Capacity Development Strategy, informed by the principles and approaches described above, will be developed as follows:

a) Capacity Assessment

A re-statement of the mandate, and how this translates into a practical 'vision' for CRDB. This is then followed by a Functional Review, which considers the evolving nature of CRDB's responsibilities and strategic policy formulation capacity. A Functional Analysis then considers the current mandated role of CRDB and maps this against strategic and core functions that the organisation must undertake. The results of a participatory skills assessment then provides some guidance on the current capacity endowment and some of the gaps, as well as providing some lessons on the effectiveness of previous capacity initiatives. The section concludes with a reflection on long-standing capacity-related constraints.

b) Organisation, Staffing and Management

The functions and responsibilities of each Department are reviewed and revised, with job descriptions developed, outlining the functions/responsibilities of the position and the minimum education, skills, and experience needed to perform these functions. This results in an identification of the staffing establishment (number and skill level) required to meet CRDB's current challenges and emerging needs. Based on the above analysis, the organisational structure is then revised and priority activities are identified in preparation for establishing a Priority Mission Group (PMG). This is followed by a series of preliminary recommendations regarding workflow and management within and across Departments.

c) Training and Motivation

The revised organisational structure, with associated Departmental Terms of Reference and individual job descriptions, allows staff to be assigned to positions within the new structure based on their skills profile and, using all of the analysis conducted so far, for capacity gaps to be identified. Training needs for each staff member can then be identified and a training plan can be prepared and aggregated across the whole of CRDB. Positions that are vacant can be prioritised for filling and options for recruitment and staffing can be considered. The issue of motivation, including the establishment of a merit-based incentive scheme is then considered.

d) Support to Implementation

The final section of the Capacity Development Strategy considers implementation arrangements and associated risks/challenges. The role of external support provided by the MDSP and by JICA is considered so that it can have maximum impact, minimise capacity substitution needs and promote a long-term and sustainable approach to capacity development. Finally, a section on Monitoring and Evaluation considers the establishment of monitoring indicators and processes that will need to be finalised according to the participatory principles that underlie this Strategy.

2.11 The CRDB Capacity Development Strategy has been informed by five diagnostic exercises conducted during the period June-October 2006. These include: (a) Functional Review; (b) participatory Functional Analysis; (c) skills self-assessment; (d) individual interviews with a national human resources expert; and (e) focus on organisational issues facilitated by an international consultant.

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