Management Response Management welcomes the opportunity to engage with the Independent Evaluation Group (IEG) around management’s on-going modernization efforts, especially those concerning the reform and strengthening of the Bank’s matrix structure. The IEG review of the matrix concludes that the matrix system may be even more relevant today than when it was created in 1997. This conclusion reflects changes over the last 15 years, including the diversification of client needs, increased differentiation among countries and within Regions, the increasing role of global public goods (GPGs) and corporate priorities, and increasing demand for knowledge and cutting-edge mechanisms for transmitting knowledge. Management agrees with this conclusion and supports the general assertion that despite the effectiveness of the matrix system in improving country-level results, the matrix needs to be further strengthened to be even more effective in supporting the Bank’s clients. The IEG review of the matrix addresses challenges that were surfaced and analyzed extensively by management in recent years. In large part, it gives rise to the ongoing work on the modernization and knowledge agendas and provides welcome additional analysis and suggestions for further reform. It is most closely related to reforms under way to improve talent management, global knowledge and staff connectivity, and manager span of control. We appreciate that IEG has recognized the broader modernization efforts in this evaluation. As management has noted on previous occasions, this evaluation appears to significantly stretch IEG’s mandate of directly assessing development effectiveness. It focuses on the organizational structure as opposed to activities with explicit direct developmental goals and outcomes. As we noted then, this kind of evaluative framework would likely lead to recommendations that cross the line between the independent evaluation function and management’s function. Many of these fall under management’s purview and are closely related to an ongoing reform program. As agreed, management will be regularly discussing progress in matrix reforms with Executive Directors through its regular business modernization updates. In this broader context, we will continue to report periodically on implementation of the evolving modernization and knowledge agendas. This Management Response covers key recommendations of the evaluation but does not repeat the detailed analysis of key issues that gave rise to the modernization agenda.1
Strategic Alignment of Sector and Country Priorities The challenge of an effective matrix organization in an international institution is twofold. First, how can we most effectively bring corporate issues, notably GPGs, to the country level, especially when appropriate GPG economic incentives for countries are in short supply? The second is how to ensure 1 See Modernizing the World Bank Group—An Update (DC2011-0005), April 4, 2011. A further update is forthcoming in April 2012.
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