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World Economic Forum2014 - All rights reserved.
No part of this publication may be reproduced ortransmitted in any form or by any means, includingphotocopying and recording, or by any information
storage and retrieval system.
The views expressed are those of certain participants inthe discussion and do not necessarily reflect the viewsof all participants or of the World Economic Forum.
REF 211014
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3Evaluation of Organizational Structures that Enable Effective Leadership
Contents
5 Executive Summary
6 1. The Effective Leadership Project
6 a. Global Governance in the 21st Century
6 b. Why Focus on Leadership?
7 c. Constrained Leadership
7 d. How Are Effective Leadership StructuresMeasured?
8 e. Methods for Assessing Organizations
8 f. Who Is Responsible for Delivering EffectiveLeadership Structures?
8 g. The Objectives of the Study
10 2. Emerging Good Practices
11 a. Selecting and Re-Electing Leadership on Merit
11 b. Managing Performance
11 c. Setting and Evaluating Ethical Standards
12 d. Developing and Retaining Talent
12 e. Setting Strategic Priorities
13 f. Engaging with a Wide Range of Stakeholders13 g. Evaluating Independently and Effectively
14 3. Appendix: Leadership Practices
14 a. African Development Bank Group
19 b. Asian Development Bank
24 c. European Bank for Reconstruction andDevelopment
28 d. Inter-American Development Bank
32 e. International Monetary Fund
38 f. International Organization for Migration
42 g. United Nations Development Programme
45 h. United Nations High Commissioner forRefugees
50 i. World Bank Group
58 j. World Health Organization
60 k. World Trade Organization
66 References
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Project Team
Ngaire Woods, Project Leader; Dean, Blavatnik School ofGovernment, University of Oxford, United Kingdom, [email protected] Saxena Kabra, Council Manager, Global AgendaCouncils, World Economic Forum, [email protected]
Nina Hall, Fellow in Global Governance, Hertie School ofGovernance, Germany, [email protected] Taranova, Researcher, Blavatnik School ofGovernment, University of Oxford, United Kingdom, [email protected] Kellerman, Researcher, Department of Politicsand International Relations, University of Oxford, UnitedKingdom, [email protected] Batten, Associate, McKinsey & Company, Australia,[email protected]
Members of the Global Agenda Council on
Institutional Governance SystemsErnesto Zedillo Ponce de Leon, Chair; Director, YaleCenter for the Study of Globalization, Yale University, USARobert C. Orr, Vice-Chair; Assistant Secretary-General forStrategic Planning, United Nations, New YorkCyrus Ardalan, Vice-Chairman and Head, UK and EUPublic Policy and Government Relations, Barclays, UnitedKingdomAnn M. Florini, Professor, School of Social Sciences,Singapore Management University, SingaporeDavid Kennedy, Director, Institute for Global Law andPolicy, Harvard Law School, USA
Pascal Lamy, Chair (2012-2013); Honorary President,Notre Europe - Jacques Delors Institute, FranceJeffrey D. Lewis, Director, Economic Policy, Debt andTrade Department, Poverty Reduction and EconomicManagement Network, World Bank, Washington DCLin Jianhai, Secretary, International Monetary Fund,Washington DCEmmanuel E. Mbi, First Vice-President and Chief OperatingOfficer, African Development Bank, TunisiaRiyad Abdulrahman Al Mubarak, Chairman, Abu DhabiAccountability Authority, United Arab EmiratesArunma Oteh, Director-General, Securities and Exchange
Commission, NigeriaKatharina Pistor, Michael I. Sovern Professor of Law,Columbia Law School, USAQu Bo, Associate Professor and Deputy Director, ChinaForeign Affairs University, Peoples Republic of ChinaGabriela I. Ramos Patio, Chief-of-Staff and OECD G20Sherpa, Organisation for Economic Co-operation andDevelopment (OECD), ParisNasser Saidi, President, Saidi & Associates, United ArabEmiratesJan Sturesson, Global Leader, Government and PublicServices and Partner, PwC, SwedenNgaire Woods, Vice-Chair (2012-2013); Dean, BlavatnikSchool of Government, University of Oxford, UnitedKingdom
Xue Lan, Dean, School of Public Policy and Management,Tsinghua University, Peoples Republic of ChinaYu Keping, Director and Professor, China Center for GlobalGovernance and Development, Peoples Republic of ChinaZhang Haibin, Professor, School of International Studies,Peking University, Peoples Republic of China
Acknowledgements
The authors are particularly grateful to the World EconomicForum for providing inspiration and supporting this project,and the academic advisers, current and former officials whohave helped along the way. Conversations with severalleaders, who provided insights into the challenges facedby leaders of international organizations, were particularlyinspiring, including those with Pascal Lamy, Gus Speth,Takehiko Nakao, Helen Clark, Suma Chakrabati and DonaldKaberuka.
Sincere thanks go to the many officials from thefollowing organizations who answered questions:African Development Bank (AfDB), Asian DevelopmentBank (ADB), European Bank for Reconstruction andDevelopment (EBRD), Inter-American Development Bank(IDB), International Monetary Fund (IMF), InternationalOrganization for Migration (IOM), Organization for EconomicCo-operation and Development (OECD), MultilateralOrganisation Performance Assessment Network (MOPAN),United Nations Development Programme (UNDP), UnitedNations High Commissioner for Refugees (UNHCR),World Bank, World Health Organization (WHO) and WorldTrade Organization (WTO). The authors would like tothank the following current and former officials from these
organizations: Bjorn Gillsater, Brian Gleeson, Kazu Sakai,Margret Thalwitz, Inge Kaul and Max Watson.
A number of academic experts generously offered theirinsights and feedback, which made this study possible:Michael Barnett (George Washington University), Sam Daws(University of Oxford), Carolyn Deere Birkbeck (University ofOxford), Michael Doyle (Columbia University), Tana Johnson(Duke University), Jrme Elie (Graduate Institute), MarthaFinnemore (George Washington University), Guy Goodwin-Gill (University of Oxford), Jane McAdam (University of NewSouth Wales), Craig Murphy (University of Massachusetts,
Boston), Catherine Weavers (University of Texas, Austin),and James Vreeland (Georgetown University).
Finally, the authors thank the Blavatnik School ofGovernment, University of Oxford, United Kingdom, andthe Hertie School of Governance, Germany, for providingresearch support for this report.
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Executive Summary
Good leadership in international organizations is necessary, but not sufficient, for their success. Structures supportingleadership vary enormously across global agencies. This report highlights some of the best practices across 11organizations that facilitate good leadership. It also underscores that international institutions could learn from each others
practices across seven domains: (1) selecting and re-electing leadership on merit, (2) managing performance, (3) settingand evaluating ethical standards, (4) developing and retaining talent, (5) setting strategic priorities, (6) engaging with a widerange of stakeholders, and (7) evaluating independently and effectively.
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6 Effective Leadership in International Organizations
1. The Effective LeadershipProject
a. Global Governance in the 21st Century
Over the last two decades, the world has suffered from aglobal governance deficit. This deficit comprises a lack of
the following:
Adequate mechanisms to deal with issues ofinternational peace and security
Satisfactory mechanisms to anticipate and counterglobal economic shocks
Effective instruments to ensure important global publicgoods, not least in critical areas such as climate changeand public health
In the early 2000s, it was expected that the internationalcommunity would embark on a comprehensive effort to
overhaul the multilateral system, with renewed rules andinstitutions to address the challenges posed by evolvinggeopolitical and economic circumstances. These ambitionsincluded reform of World Bank and IMF governance;creation of a new world environmental institution; andongoing attempts at United Nations (UN) Security Councilreform. Recent history suggests, however, that such acomprehensive overhaul will not take place anytime soon.
Almost every effort to significantly transform themechanisms for international cooperation and coordinationhas failed. The floundering of the 2005 UN World Summit,the collapse of the World Trade Organizations (WTO) Doha
Round, the disappointing progress on climate change,and the non-fulfilment of early and indispensable G20commitments all suggest that governments are not ready,or not willing, to close the growing governance gap, at leastwithin the next few years.
In other words, no transformative overhaul of internationalinstitutions should be expected in the foreseeable future.In no way should the pertinent players give up on existinginstitutions; rather, the only realistic alternative seems tobe incremental reform.1Scarce political capital shouldbe applied to improving the performance of multilateralinstitutions, as radical transformations of the existing overallframework cannot be counted on. Based on this notion,this project addresses one aspect where incremental reformseems not only necessary, but feasible: in the leadership ofinternational organizations (IOs).
b. Why Focus on Leadership?
Effective leadership in international agencies is crucial: theworld relies on these organizations to ease cooperation whether in ensuring pandemics are constrained, mail is
delivered to foreign countries, or citizens can fly safely toother countries.
To be effective, agencies need leaders who can identifyand deliver on organizational goals without the constraintof undue influence, by individual members or otherstakeholders. Yet, some IOs have not even defined theleaders role, let alone recruited or managed that personon the basis of particular knowledge, competence andexperience required to effectively lead the organization.In addition, democratic election processes and strongaccountability mechanisms are necessary to ensure that
the interests of executive management are aligned with theorganization.
While good leadership is not enough for successfulinternational cooperation, it is necessary for effectivegovernance. However, leadership performance inorganizations is often buried behind arguments about whichcountry should get the top job. The presumption is that,once appointed, leaders have their hands tied by memberstates, and will predominantly serve their patrons interests.Indeed, leaders performance is seldom rigorously testedor measured. Moreover, little attention has been paid tothe institutional features needed to promote effective andaccountable governance.
This project of the Global Agenda Council on InstitutionalGovernance Systems has taken up the challenge. First,the project has identified ways in which leadership makesa positive difference in the performance of internationalagencies. Second, the research team has investigateda sample of IOs, drawing out best (and other) practicesthat either illustrate or indicate a lack of high-performingleadership.
The reports seven sections cover the positive practices
emerging in IOs that support good leadership. Thisintroduction sets out the conception of leadership, as wellas the studys rationale, method and strategy.
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c. Constrained Leadership
Leaders influence their agencies operational and strategicdirection. They work with member states to identify prioritiesand set strategy, and translate this into operational goals,which in turn are monitored and evaluated as progress ismade towards them. Leaders direct a bureaucracy andsee that it has sufficient staffing, expertise and financing tocarry out mandated tasks. They also must consult and workwith other stakeholders. While their room for manoeuvringis limited (see Figure), their actions and behaviour are vitalto their organizations success. Finally, organizations thatdepend on ad-hoc funding also constrain their leaders.
In addition, the Council and team sought to captureinnovations in leadership across the organizational cases.
Not all of the important elements could be measured.In fact, it was difficult to find a metric to measure thedegree to which leadership structures permit resistanceagainst capture by a powerful state, private companiesor vested interests; and this despite that many instances
exist of undue influences undermining an organizationsperformance (an organizations leadership can play a keyrole in ensuring this does not happen, or at least that it isbrought to the publics attention). Some of this dimensionof leadership is covered in the reports reflections on ethicalstandards, setting strategic priorities (e.g. the proportion ofcore vs earmarked funds) and procedures for electing anadministrator, director-general (DG) or managing director(MD). Future research could investigate other measuresof organizational independence and impartiality, suchas whether heads of organizations should chair councilor governing body meetings, and how effectively theycan shape decision-making in these meetings to guard
against special interests. Studies could also examine ifan organizations leader is able to publish reports, policypositions or advice in the organizations name, without priorapproval of member states.2
Another important element of leadership is the speed ofrenewal and the capacity to adapt to changing externalenvironments. This was very difficult to measure or compareacross the 11 different organizations, given the variety ofenvironments and issue areas. In the future, studies couldlook at the extent to which IO heads can (and do) initiateprojects, pilots or discussions to address emerging issues,
and the leeway they have to shape these. Finally, theauthors believe leaders play an essential role in ensuringtheir organizations collaborate with others to delivercooperation and other public goods. Future research, it ishoped, will identify ways to track governance in this area.
The report reflects on practices from a pilot group ofinternational organizations. In some cases, good practiceseems relatively straightforward. For example, for theselection of an organizations head: do clear and publiclyavailable terms of reference (TOR) exist for both the positionand a high-quality, exhaustive search process? As forethical leadership, are leaders required to sign and adhereto the organizations ethical codes, and publicly declareany conflicts of interest and their financial assets? In somecases, good practices may vary enormously for instance,in how leaders attract and retain a diverse staff.This study benchmarks current practices and does not rankorganizations against each other, as significant differencesin the structure, size, nature and scope of IOs make rankingproblematic. However, some common principles andstructures could strengthen leadership possibilities in allorganizations.
Political
Leader
Governments
members of IOs
Bureau
cratic
IOsse
nior
man
agem
ent
Socialand
economic
forces
External
stakeholders
High performance in a leadership role has a major impact onan organizations ability to deliver on tasks requested by itsmember states. An IO with weak operational planning, highstaff turnover and vulnerability to special interests is unlikely
to perform effectively. Not only do leadership governanceand effectiveness need more attention in internationalorganizations; a striking need also exists for more practice-focused comparisons across organizations so they canlearn from each other.
An important caveat should be emphasized: improvingleadership in IOs is just one part of improving their overallperformance. Leaders are heavily constrained, relying onfinancing from the member states that select them. SomeIO boards monitor their leadership and organizationsarchitectures very closely, meeting weekly to discuss andprovide regular input to operational business, while othersmay only convene several times a year. The enormous
differences in the broader governance structures of IOs,which greatly influence their operations, are noted in thisreport.
d. How Are Effective Leadership Structures Measured?
Through extensive deliberations, the Council and projectteam have identified seven indicators of effective leadershipstructures:
1. Selecting and re-electing leadership on merit2. Managing performance3. Setting and evaluating ethical standards
4. Developing and retaining talent5. Setting strategic priorities6. Engaging with a wide range of stakeholders7. Evaluating independently and effectively
Figure:Types of Forces that Constrain Leadership
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e. Methods for Assessing Organizations
The Council identified seven indicators contributing toeffective leadership. The research team then determinedquestions for assessing IOs on each of the indicators andfor using as the basis for studies of leadership practicesin 11 organizations (see appendix): African DevelopmentBank (AfDB), Asian Development Bank (ADB), European
Bank for Reconstruction and Development (EBRD), Inter-American Development Bank (IDB), International MonetaryFund (IMF), International Organization for Migration (IOM),United Nations Development Programme (UNDP), UnitedNations High Commissioner for Refugees (UNHCR), WorldBank, World Health Organization (WHO) and World TradeOrganization (WTO).These organizations were selected because they covera broad range of issue areas (from health to migrationand development), vary in size, and include regional andinternational bodies. However, the selection was notintended to be representative of all intergovernmental
organizations, but rather to provide a basis for the pilotstudy of best practice in governance. Inclusion of otherorganizations in future studies is encouraged.
A research team initially conducted a desk-based study,looking for publicly available evidence of each indicator.Follow-up interviews with former and current senior officialsof the organization, as well as key stakeholders andacademic experts, were conducted. Their inputs were usedto identify additional documentation of formal processes,and to identify relevant informal practices. Although thereport is focused on the presence of formal processes
(documented officially, wherever possible, when sufficientevidence is available), the differences between formaland informal processes have also been captured. Theevidence included in the appendix is separated into twocolumns: published rules, based on official organizationaldocuments; and other factors, which draw on a rangeof sources including interviews with experts on theorganization and staff to gain more subjective insightsinto informal practice. Where possible, decoupling (whenformal rules are in place but are not to be implemented inpractice) is noted. While attempts were made to gather themost recent information for each organization, the studymay not capture all organizational practices, as many ofthe organizations were undergoing significant reforms. Asummary of good, formal leadership practices is shown inthe Table.
The data for each question across the 11 organizations wasanalysed to identify variations in practice. The objective wasnot to derive an ideal best practice, although managementand public administration studies were also consulted.The report is limited to practices in IOs from which otherorganizations could learn. Readers and organizations areinvited to contribute input3from practices and examples notdiscussed in this report.
f. Who Is Responsible for Delivering Effective LeadershipStructures?
An organizations membership (represented on its board)and its senior management are collectively responsible forensuring effective processes are in place. The membershipor the board have responsibility for some criteria (electionand re-election procedures for heads); other indicators fallunder the scope of senior leadership (ethical codes, conflictsof interest), and some are shared (setting strategic priorities).In some organizations, a grey zone may exist, where itis not always clear who is responsible the leader, senior
management team, membership or board. By identifyingthese priority areas, organizations should be able to focusattention and clarify who will take the lead.
g. The Objectives of the Study
This study aims to inspire greater attention to leadership ininternational organizations, instigate learning across themand draw attention to good practice. Many organizations inthis study are already engaged in reforming their governancemechanisms, strategic frameworks or other organizationalprocesses. This study highlights leadership structures as
one element that should be taken into account.It is planned to share results with relevant forums, bringingtogether boards and committees in the UN system, andacross international financial institutions and developmentbanks. Apparently, a number of these organizations arealready sharing practices. It is hoped that the study willfoster a more systematic comparison and identification ofgood practice, thus enabling more direct learning.
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Table:Good Leadership Practices among the 11 Selected Organizations
Indicators Examples of Formal Practice
Selecting and re-electing leadership on merit
1. Organizations should search for candidates withspecific, relevant competencies, and test these againstclearly defined criteria through an inclusive, exhaustiveprocess.
Criteria/TOR for leadership are published online
Selection process updates are available online
Passport blind selection of candidates is done
Other candidates are always considered in re-elections
Performance is given formal consideration in re-elections
Managing performance
2. Organizations should have clear expectations ofperformance, which are transparent and consistent withtheir goals, and facilitate leadership accountability.
Leaders are expected to set performance expectations ininaugural speech
Boards conduct regular individual performance appraisals
Setting and evaluating ethical standards
3. Leadership should comply with clearly defined ethicalstandards. Leaders are obliged to disclose financial assets andconflicts of interest
Leaders are obliged to adhere to a published code ofethics
Compliance with the code of ethics is enforced
Developing and retaining talent
4. Leadership should attract, retain and developtalent throughout the organization.
Leaders carry out regular global staff surveys
Leaders ensure survey results are monitored and utilized
Leaders are obliged to participate in formal trainingprogrammes for their own professional development
Setting strategic priorities
5. Leadership should have the authority and mechanismsto shift strategic priorities due to changingcircumstances.
Strategic documents include measurable objectives
Engaging with a wide range of stakeholders
6. Organizations should have structures that encouragemanagement to engage with a wide range ofstakeholders.
Meetings between stakeholder organizations and a diverserange of civil society actors occur on a regular, establishedbasis
Evaluating independently and effectively
7. Organizations should have structures that encouragemanagement to engage with internal and externalevaluations.
Evaluation office reports directly to the boardManagement must respond to evaluations
Source:Authors
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2. Emerging Good Practices
a. Selecting and Re-Electing Leadership on Merit
Many international organizations have no selection processthat clearly searches for and tests candidates on relevant(and much-needed) leadership competencies in their
domain. Often, leaders are selected in a political bargainingprocess. However, some changes are under way.
The review of leadership selection revealed four importantpractices, each of which is being used in at least oneinternational agency: (1) the leadership role is clearly defined,(2) the competencies and experience needed to take upthe role are clearly stated, (3) the role and competenciesare openly advertised, and (4) the selection process istransparent and clear.
WHO, for example, set out a code of conduct in 2011 to
ensure ethical and transparent nomination and electionof leadership. It specifically notes that every candidate isexpected to provide supporting evidence to match each ofthe published criteria for the Director General position. Theexecutive board shortlists those candidates matching thecriteria.4
In its selection process, theWTOactively seeks to reflectits memberships diversity. An official WTO document(WT/L/509, published in 2002 and available online) invitesnominations from across all regions and stipulates that,in the case of equally meritorious candidates for DGappointments, the diversity of WTO membership shall be
taken into account.5The document also gives the clear timeframe for the process to start nine months before, and becompleted 3 months prior to, the end of the incumbentsterm. The recent election of the WTO DG was a role modelof transparency: all stages were well documented andexposed through a special page on the WTO website.
Although selecting its president remains non-exhaustive andwithout a clear formal process, the EBRDis introducinggreater rigour at the vice-president (VP) level. For example,EBRD conducted an exhaustive review from over 850applicants for the position of VP of banking operations (a
post traditionally held by an American). The search waspassport-blind, and included psychometric testing andmultiple interviews.6
The IMFhas been opening up its processes. In 2011, itpublished its first comprehensive terms of appointmentfor its Managing Director.7In addition to its Articles ofAgreement and By-Laws, which contain a standardizedjob description for executive directors, the IMF published
complete terms of reference in the same year for the ethicsadvisor,8ombudsperson9and director of the IndependentEvaluation Office.10The IMF already instituted a rigorousprocess of candidate profiling in 2007, making available fulljob descriptions, and the desired qualities and experienceof candidates. The executive board set out a timetable andinvited nominations from executive directors for the postof MD, interviewing those that did apply.11However, theIMFs good formalpractice is undermined by theinformalconvention that the organizations European members, inconsultation with the other members, ultimately select aEuropean as MD.
In the WTO, all decisions, including selection of the DG,are made by consensus of all members. If a consensuscannot be reached in the appointed time, a provisionallows for a vote by the General Council.12In the 2012 DGselection process, WTO members officially nominated ninecandidates, each of whom presented their vision for theWTO at a council meeting in January 2013. In the final twomonths of the process, the council chair consulted withmembers to build a consensus. The selection processconcluded with a council meeting in May, where thedecision to appoint the new DG was taken.Practices for re-election or reappointment are not particularlystrong across organizations. Performance can be difficult toassess, as few international organizations have objectivesfor their leadership on this measure. WHO stands out in thisregard. During the re-election of its DG in May 2012, theincumbent wrote a self-assessment that evaluated her first-term performance on the priorities she had set out; this wascaptured in a document and taken into account through there-nomination process. TheAfDBnow considers a range ofcandidates alongside the incumbent for re-election, as doesthe EBRD, where Sir Suma Chakrabarti was selected overthe incumbent president in 2012.The more exhaustive, inclusive and meritocratic the process,
the better the chance of not only the best candidatebeing chosen or reappointed, but also of full membershipbeing engaged to hold that candidate accountable forperformance.
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b. Managing Performance
Governments expect that heads of internationalorganizations, once appointed, will deliver on their mandatedgoals. However, individual states often have divergent viewson organizational priorities and the role of leaders, andsome states have greater influence over leadership selectionand subsequent decision-making. It is thus critical that the
membership and the leader agree together on performanceexpectations, particularly at the start of a new tenure.Furthermore, the leaders responsibilities with respectto vision, goals and implementation need to be carefullydifferentiated from those of the board. Otherwise, lines ofaccountability and responsibility are blurred, and the boardcan no longer evaluate the leaders performance withoutevaluating its own.13Setting performance expectationscan help prevent organizational capture (when the leaderbecomes the instrument of a few states) and enableperformance management.
Despite the proliferation of results-based management,
no organization in this study had an openly publishedformal procedure for setting performance expectationsfor the leader. However, all leaders were expected toreport regularly to member states on overall organizationalperformance at board, council and other equivalentmeetings.14
In some international organizations, incoming presidents ordirectors are expected to deliver a statement to the boardor general council, setting out a vision and objectives forthe organization during their tenure. Such a procedure, forexample, took place at the WTO in 2009.15In recent years,
the president-elect of the AfDB also delivered a working planat the swearing-in ceremony.16
If performance objectives are set, boards can conductregular performance appraisals to give feedback on aleaders successes and failures. Regular managementof leaders performance is standard across the privateand public sectors. A formal, annual process to evaluatechief executive officer performance exists in 80% of USnon-profit boards and 96% of Standard and Poors 500companies.17However, very few international organizationshave institutionalized annual performance appraisals oftheir leaders. One study found that none of the majorinternational financial institutions conducted individualperformance appraisals in 2008.18
More recently, some organizations have sought toaddress this deficit. Since 2009, the MD of the IMF hasbeen evaluated annually by the board, based on agreedperformance objectives. As part of the feedback, theMD also assesses the executive boards performance.The framework is tailored by job position and based onthe IMFs annual performance review template. Annualsalary adjustments for IMF management are linked to theconsumer price index, and allow for performance-based
merit increases.
In 2008, Ban Ki-moon, UN Secretary-General, establishedSenior Managers Compacts for many senior UNofficials.These compacts outline the roles of UN department heads,although they do not cover UNHCR or UNDP. Headsmust report if they are spending their budgets accordingto programme objectives.19In addition, they are reviewedon how well they promote gender diversity and followgeographic distribution requirements. The UN Secretariats
Management Performance Board uses the compacts toassess senior UN leaders annually.20
c. Setting and Evaluating Ethical Standards
In recent years, a number of heads of major internationalorganizations have resigned because of questions abouttheir ethical conduct.21Three sets of practices areassociated with upholding ethical standards: (1) an ethicscode; (2) a clear authority in charge of monitoring andenforcing it, and dealing with non-compliance; and (3) formaldeclarations of any conflicts of interest and financial assetsof senior leaders.
Every international organization examined in this studyobliges all staff and heads to adhere to a code of ethics.However, not all codes are public, and not all are formallyenforced. The EBRD has a defined formal code of conduct(updated in 2012), which is overseen by a chief complianceofficer who reports directly to the president. The WorldBank Grouphas its Office of Ethics and Business Conduct,an ethics helpline, a code of conduct for staff (2003) andthe Code of Conduct for Board Officials, which focuses ondisclosure policies.22With womens accession at the Group,the documents have recently been refined to include sexual
harassment. Meanwhile, the WTOs code of core values isonly circulated internally. All UN staff are obliged to follow itscode of conduct, and many UN agencies, such as UNHCR,have set their own codes of conduct.23
Some organizations require disclosures of conflictsof interest and financial assets. Declarations are filedannually at the AfDB, which also has an organization-widewhistle-blowing policy (2007), anti-corruption and fraudframework (2006) and an office to investigate disclosures.This was a product of a joint anti-corruption task force(2006) of international financial institutions.24In the UNsystem, all senior officers must file an annual financialdisclosure statement with the UN ethics office.25Thosewho do not are charged and may be penalized by the UNsDepartment for Administration and Management.26TheUNDPadministrator and the UNHCR high commissionerhave voluntarily disclosed their financial assets publicly, andmade them available online.27However, these organizationsare exceptions: most leaders do not publicly disclose theirfinancial assets.
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d. Developing and Retaining Talent
A core responsibility of leaders at IOs is to attract, developand retain outstanding staff. Leaders can thus help toensure their workforces have the capacity and diversityto deliver on the organizations vision and strategy,while proactively addressing gaps in capability.28Thisis a challenge for international organizations, where it is
understood that particular countries should hold certainpositions, and staff selection is seen as requiring a balanceof national diversity and merit. At worst, leaders may facepressure from states to hire particular individuals for high-level posts.
IOs can attract, develop and retain talent in many ways for example, through policies for fair and transparent staffselection, and by ensuring diversity of staff at all levels.However, when trying to study staff diversity in genderand nationality across the 11 organizations, it was difficultto get accurate, comparable data for all organizations.For this reason, the use of staff surveys, while a limited
measure, was seen as evidence of senior managementsinterest in staff welfare. Such surveys, as well as staffliaison organizations, are used by some organizationsto monitor staff progression and ensure that it is, and isperceived to be, based on merit. UNHCR conducts staffsurveys every three years, and has done so since 2006. Theagency has a committee dedicated to carrying out surveyrecommendations and developing action plans.29The HighCommissioner has tasked the Deputy High Commissionerwith following up recommendations from this committeesdeliberations. Responses to UNHCRs staff survey haveguided human resources reform and resulted in changes
to the agencys postings and promotions procedures.30
UNDPs annual global staff surveys are conducted by anexternal independent organization. The EBRDhas recentlyreprioritized staff surveys, conducting them annually ratherthan every three years.31As yet, none of the internationalorganizations examined makes staff survey results availableonline.
Heads of organizations mentor, support and coach theirstaff. While few formal processes exist for this, evidencedoes show widespread informal practices in manyorganizations. For example, IOMs director-general makesit a priority to open the training of new chiefs of mission,outlines the organizations vision and invites open dialoguewith staff.32
Finally, leadership training that ensures the strengthening ofnecessary senior management skills is occurring in a fewagencies. The IMF has recently progressed with leadershiptraining programmes. Most leaders are supported with andtrained in organizational rules by their executive office staffand/or their chief of staff when they arrive. For instance,UNHCRs chief of staff provides informal on-the-job trainingin UN rules and protocols to new high commissioners.UNHCRs Global Learning Centre in Budapest has
consolidated the agencys learning activities andprogrammes, and has a position dedicated to developingand delivering training programmes for senior management.Many organizations are prioritizing senior staff development.The EBRD, for example, has a learning and development
team that works closely with the evaluation departmentto design measures addressing current weaknesses inprogramme delivery.
e. Setting Strategic Priorities
Most organizations have a mission statement and strategicgoals that identify the raison dtre and ultimate objectives.
To deliver on these, the organizations heads must translatethe overarching organizational mission into a clear, detailedand measurable operational plan, and evaluate progresson a regular basis. International organizations vary greatlyin their ability to do this. Some organizations have verybroad strategic documents, with weak strategic direction,no measurable objectives and no mechanism to evaluateprogress. Others have developed more detailed andmeasurable strategies, with timelines and budgets. Boardmembers most often work with executive leadership to setstrategic frameworks and evaluate progress towards them.Yet, their input varies greatly in some cases, memberstates may lead on formulating strategic goals (e.g. IOMs
12-point plan), and in others, the executive director will takethe lead (for instance, the UNDP).
UNHCR and UNDP are committed to producing well-developed strategic documents. UNHCR details objectivesin its Global Strategic Priorities, and evaluates progresstowards them in global annual reports and strategic reviews.The priorities set out operational, support and managementgoals, and include specific impact indicators to evaluateprogress.33The agency has also established the GlobalManagement Accountability Framework (GMAF), whichcomprehensively maps accountabilities, responsibilitiesand authorities across the organization and relates them to
the corresponding management policies and guidance.34
It works at country, regional and global levels to clarify thelines of accountability, responsibilities and functions. Inaddition, UNHCR has Focus, a software that integrates itsresults-based management at country and internationallevels. UNDP has a series of regular strategic plans coveringabout four years, and reports in depth on how it willimplement, finance, measure and review progress towardsthese goals.35
In recent years, the IMF produced the Global Policy Agenda,the MDs vision of the institutions strategic priorities andactions. It serves as the basis for the biannual InternationalMonetary and Financial Committee ministerial meetings thatreview and set the IMFs broad goals, which the executiveboards work programme subsequently operationalizes. Thishelps the IMF to respond swiftly to changing circumstances.Similarly, with its president setting priorities, the EBRD hasrapidly expanded lending to North African clients in need ofgreater assistance in their transition to democracy and freemarkets. TheADBs 2008 report, Strategy2020: The Long-Term Strategic Framework of the Asian Development Bank2008-2020, provided a 12-year framework, with measurableorganizational objectives, to guide the organization. Amidterm review of the banks performance, presented atthe board of governors annual meeting in 2013, found that80% of ADBs operations in 2008-2012 were conducted in
the five core areas outlined in the original strategic agenda:infrastructure, environment, regional cooperation, financialsector development and education.
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13Evaluation of Organizational Structures that Enable Effective Leadership
An international organizations flexibility is also influencedby its funding model. Providing discretionary, orearmarked, funding can rapidly spur specific activitiesand innovations. Discretionary and other tied funds fromprivate institutions, other multilaterals or trust funds mayenable leaders to expand into new areas and adapt tochanging circumstances when they are explicitly soughtfor this purpose. However, because discretionary funds are
tied to specific tasks, leaders may have little flexibility toredeploy these funds with changing external circumstances.Organizations with a small core budget, and highly reliant ondiscretionary financing, would be expected to respond moredirectly to donor demands to ensure their survival.
Most organizations studied had a high percentage offunds earmarked for specific issues or projects, implyingthat leadership has less flexibility and discretion in settingpriorities. Over 97% of IOMs financing is from non-corecontributions.36However, the organizations director-general has actively lobbied states for an increase inIOMs core funding, and has also established an audit and
oversight committee.37Similar numbers are seen in otherorganizations: in 2012, only 2% of UNHCRs financingcame from the UN regular budget, and 98% percent wasvoluntary; for WHO, 76% of financing was voluntary.38
WHO, as part of its extensive programme reform, haslaunched the Financing Dialogue initiative, spearheadedby Director-General Margaret Chan. Among otherthings, it aims to ensure that member states and otherfunders commit to fully aligning fund allocation to theapproved programme budget. Funders should make theircontributions public to increase transparency, and ensure
the predictability and flexibility of their funds.39
f. Engaging with a Wide Range of Stakeholders
Every multilateral organization engages in some waywith its members and a wider group of stakeholders,including beneficiaries, private-sector organizations, non-governmental organizations (NGOs) and other civil societygroups. Some do this more effectively than others. Thebenefits from positive, well-structured engagement includebetter information, better-quality collaboration, heightenedresponsiveness, sharing responsibility, and better publicunderstanding and cooperation with the agency.Most organizations have formal and informal mechanismsto engage with stakeholders joint projects with NGOs andother multilateral organizations, discussions and dialoguesat conferences, and structured forums to interact withleaders of academia and civil society. But as no establishedmost effective way exists to conduct these engagements,the challenge is in measuring or attempting to report bestpractice. Evidence, however, points to the importanceof regular, formal meetings between organizations anda diverse range of civil society actors. It becomes moredifficult for civil society to have an impact when meetings areinformal or irregular.
g. Evaluating Independently and Effectively
In recent years, most international organizations haverecognized that independent evaluations can provide timely,useful and robust information on their work.40The WorldBank created the Operations Evaluation Unit in the 1970sunder its president, Robert McNamara (1968-1981), andrenamed it as the Independent Evaluation Group in 2001.The same year, the IMF created an evaluation group, which
it has subsequently and independently audited on twooccasions.41
Besides serving as external appraisals, evaluations arealso another way to ensure that members are aware of thegovernance, effectiveness, impact and use of their funds.The independence of these evaluations is critical andimportant to maintain, as are the channels through whichevaluators findings are considered.
At the IMF, the Independent Evaluation Office (IEO) isindependent from management and reports to the board. Asindicated in the IEOs terms of reference, the office engageswith executive management, the board and staff when theyrespond to relevant parts of the evaluation.42
At the World Bank and EBRD, independent evaluationteams report directly to the board of directors. TheIndependent Evaluation Group (IEG) at the World Bankconducted a client survey in 2012 to determine bothwhether the bank was meeting clients needs and howclients perceived its impact, as one of the ways of engagingwith the organization. At EBRD, engagement is donethrough links with key people, i.e. the chief complianceofficer reports directly to the president, as does the internalaudit team. The vice-president for risk also sits on theexecutive committee.
The AfDB has recently tried to strengthen independentinternal and external evaluations. The Quality Assurance andResults department has established a round-table reviewmechanism that brings together management from variousrelevant departments to review evaluations and set out,where necessary, action to address them.
The ADB has internal and external reviews. The internalcompliance review panel investigates alleged non-compliance by the bank in its operational policies andprocedures. It does not, however, investigate borrowingcountries, the executing agency or private-sector clients,unless they are relevant to non-compliance. Externally, theMultilateral Organisation Performance Assessment Network(MOPAN) regularly evaluates the institution and individualmembers, especially large donors such as the UnitedKingdom and Australia, and conducts regular assessmentsto ensure their money is being spent safely and effectively.
Some organizations have recently taken steps to make surethey follow best practice. The UNDP, for example, revisedits evaluation policy in 2011 to establish the EvaluationOffices independence and ensure that all evaluations havea response from management. The offices head reportsdirectly and independently to the executive board. Theadministrator, however, is briefed before an evaluation
is presented to the board, and the administrators officeprepares a management response to evaluations. Theadministrator has the right to reply to evaluations, anddiscusses follow-up actions with the board.
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17Evaluation of Organizational Structures that Enable Effective Leadership
2
DoestheMO/IOhaveprocesses
thatfacilitateimplementationofnew
stra
tegicpriorities?
Yes.
Forexample,
theResultsMa
nagementFrameworkwillm
onitor
implementationofthenewStrategyfor2013-2022overthe
3-yearplanninghorizonreflected
intherollingplanandassessthe
developmenteffectivenessofthe
institution.
3
Whatpercentageofresourcesareset
asid
eforspecialinitiativesdecidedby
and
controlledbyasubsetofthefull
membership?
TheFundhasavailableresources
entrustedtoitunderArticle8
ofthefoundingAgreement(1963
),whichempowerstheFundto
receiveotherresourcesincluding
grantsfromStateParticipants,
non-participatingcountries,andfromanypublicorprivatebodyor
bodies.5
6T
herehasbeenanincre
aseintrustfundscapitalin2010
73%
comparedto2009thattriggeredatrustfundsreform.5
7
Asof2012,
theBankmobilizeda
totalof$127.7millionfromdonors
toreplenishtheexistingthematic
($130million)andbilateral($22.6
million)TrustFunds.
Bytheendof2012,
theAfricanD
evelopmentBankhadmade
substantialprogressunderitsTrustFundReformpolicybymoving
awayfromtiedbilateralfundstomulti-donorTrustFundsmostof
whicharethematicinnature(forexample,
South-SouthCooperation
TrustFundwithBrazil($6million)
approvedbytheBoardinMarch
2011).
VI.
The
leaderisexpectedtoattract,reta
inanddeveloptalentthrough-ou
ttheorganization
1
Doestheorganizationtakestaff
surveystoassessstaffsatisfaction
and
performanceanddoleaders
utilizetheresultsofthesesurveys?
Yes.
Thefirststaffsurveywasconductedin2007.
In2010President
Kaberukacommittedtoaregular
corporateaccountabilityexercise,
involvingbothclientsurveyanda
staffsurvey.58T
hemostrecentsta
ff
surveywascompletedinDecember2013withresultsexpectedtob
e
publishedinFebruary2014.
Therehavebeenanumberof
staffsurveysinthe
pastandweareplanningtoin
stitutionalizethe
processandincluderesults(s
taffengagement
survey)aspartofourResultsMeasurement
Frameworkthefundamentalbenchmarkagainst
whichweassessourownper
formance.
Oneof
the2013-2022Strategy59g
oa
lsis:toputfocuson
performancepriorities,
talent
managementand
successionplanning.60
2
Istheleaderassessedonmentoring
and
coachingofsubordinatestaff?
Noevidence.
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18 Effective Leadership in International Organizations
VII.
MO/IOhasstructuresthatencourageleadershiptoengagewithdiverserangeofstakeholders
No.
AccordingtotheFrameworkforEnhancedEngagementwithCivilSocietyOrganizations(2012),theBan
k
has
nomechanismstoensuresystematicCSOsengagement,butaimsa
tstrengtheningandinstitutionalizin
g
it.61
Thedocumentencouragesthesta
ff(managementincluded)toengag
ewithstakeholders.6
2
Com
plianceReviewandMediationUn
it(CRMU)administersIndependentReviewMechanism(IRM)through
whichpeopleadverselyaffectedbyaprojectfinancedbytheAfDBcanrequesttheBanktocomplywithits
ownpoliciesandprocedures.
VIII.
MO/IOhasstructuresthatengagelead
ershipthoroughlywithinternal/externalevaluations
The
Bankhasstructurestodealwithb
othinternal/independentandexternalevaluations.6
3
For
independentevaluationsthereisa
ManagementResponseandaManagementActionRecord(MAR)that
isp
ublishedanddiscussedwiththeBoard.
TheMARsetsouttime-boundactionstheBankwill(
orwilln
ot)
takeinresponsetoRecommendationsmadebyIndependentEvaluators.
ManagementandEvaluatorsthen
jointlytrackimplementationoftheseM
anagementCommitments.
Forext
ernalEvaluations(e.g.
UKMultilateral
Aid
Review,
AustralianMultilateralAidRevieworMOPAN)theBankprepa
resManagementResponses(thou
gh
not
usuallyanMAR).
Qua
lityAssuranceandResultsDepartmenthasestablishedaRoundtable
ReviewMechanismthatbrings
togethermanagementfromvariousrelevantdepartmentstoreviewtheevaluationsandsetout,where
nec
essary,actiontoaddressthem.
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20 Effective Leadership in International Organizations
Indicator
Publishedrules
Otherfactors
I.
The
leadershipselectionprocessse
archesandtestsforspecific,relevantcompetenciesagainstclearlydefinedcriteriathroughaninclusive,
exhaustiveprocess
1
DoestheMO/IOpublishthecriteria/
term
sofreferenceforleadership
online?
Noevidence.
2
Whatpercentageofthemembership
isin
volvedinleadershipselectionand
re-e
lectioninpractice?
Formally,
fullmembership.
(a)Eac
hGovernorcannominatea
candidate.
(b)Eachmembercountryhasonevote.
ThePresidentis
electedbyasimplemajorityofGovernorsrepresentingnolessthan
a
majorityoftotalvotingpowerofa
llmembers.7
7F
urther,thePresiden
t
mustbeanationalofaregionalm
embercountry(e.g.,
therecannot
be
anAmericanPresident).7
8
MuchliketheWorldBankstraditionofselecting
anAmericanPresident,theADBiscommonly
understoodtooperateundertheinformal
conventionthatthePresident
isselectedbyJapan
(Yasutomo1993,
1995;Wan1995;Kilby2006,
2011;Lim&Vreeland2013).EveryPresidenthas
beenJapanese,andmosthavecomedirectlyfrom
theFinanceMinistryofJapan.7
9L
im&Vreeland
(2013)writethatinadditionto
itslargeformalvoting
power,Japanexertsinformalinfluencethroughits
defactoappointmentoftheA
DBpresident.80A
DB
DirectorofStrategyKazuSakaistronglydisagreed
withthenotionthatJapande
factoappointsthe
President.Heremindedviainterviewthatevery
regionalmembercanputforw
ardacandidate,and
thatnoothercandidatedoes
notmeantherewas
noelection;therewas[still]an
electionandvoting.
Numerousacademicsandobserversmaintain,
however,thatthestronginformalinfluenceandlarge
monetarycontributionofJapa
nallowsittopick
thePresidentuncontested.8
1ButasSakaicorrectly
notes,
thereisnoformalevide
ncethatwould
confirmsuchaninformalarrangement,asidefrom
thefactthattherehasneverb
eenanon-Japanese
candidateproposedbyanym
ember.
3
Isthereatime-bound,published,
exh
austiveprocessforleadership
sele
ctionthatweighscompetence
aga
instthepublishedcriteria?
Noevidence.
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28 Effective Leadership in International Organizations
d.Inter-A
mericanDevelopmentBan
k(IDB)
Organization
Foundedin
1959asapartnershipbetweenLa
tinAmericancountriesandthe
UnitedStates,
theIDBsupportsclientgovernments,privateentitiesandnon-
profitsecto
rswithcapitalfordevelopmentoperations.
TheInter-American
Developme
ntBankGroup(IADB)iscomposedoftheIDB,
theInter-American
Investment
Corporation(IIC)andtheMultilateralInvestmentFund(MIF),thelatter
beingadministeredbytheIDB.
Thegroupish
eadquarteredintheUnitedStates
(Washingto
nDC).
Governance
TheIADBisheadedbyaboardofgovernors,
whichdelegatesoversightofbank
operations
toaboardofexecutivedirectors(representativesfrom48countries).
Themanag
ementteamrunsday-to-dayoperations.
Electedbytheboardof
governors,
thepresidentchairsthemeetingsoftheboardofexecutivedirectors,
buthasno
vote.
Lengthofleadershipmandate
Fiveyears;
canbere-elected.
Income
$11.4
billioninlendingwasapprovedin2012.
ThesubscribedcapitaltotheIDB,
aftertheninthgeneralcapitalincrease,willam
ountto$170.9
billion.
Numberofstaff
About2,00
0.
Historyofleadership
Thethreepriorpresidents
servedseveralterms:FelipeHerrera(fromChile,
1960-
1971);AntonioOrtizMena
(Mexico,
1971-1988)andEnrique
V.Iglesias(Uruguay,
1988-2005).
Thecurrentpresident,LuisAlbertoMoreno(Colombia;2005-present),
hasalso
servedmorethanoneterm.
Inthe1970elections,
bothArgentinaandVenezuelanominateddifferent
candidates,
buton27November,Ortizreceivedthemajority
ofvotes.
DavidM.
Kennedy,USsecretaryof
thetreasury,reportedtoPresident
RichardNixonthatthe
electionhadbeenconten
tious.125
TheAndeanDevelopmentCorporation(CAF)fundedmoreLatinAmerican
infrastructureprojectsin2
012thantheIADBandWorldBankcombined.1
26
AccordingtoHumphreya
ndMichaelowa(2013),theattractivenessofCAFvis--vis
theIADBisitsfastproces
singtimesandlowsocietalandenvironmentalstandards.
Suchadvantages,
theauthorsargue,areperhapsmadepos
siblebyCAFslackof
non-regionalmembers.1
27
Currenttrajectory
SinceMorenoassumedth
epresidencyinOctober2005,
the
bankhasundergonea
majorreshapingofitsorganizationalstructure,andhasestab
lishedareformagenda
linkedtotheninthgeneralincreaseinresourcesmandate.
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29Evaluation of Organizational Structures that Enable Effective Leadership
Indicator
Publishedrules
Otherfactors
I.
The
leadershipselectionprocessse
archesandtestsforspecific,relevantcompetenciesagainstclearlydefinedcriteriathroughaninclusive,
exhaustiveprocess
1
Doe
stheMO/IOpublishthecriteria/
term
sofreferenceforleadership
online?
No.
TheChairmansubmitsthete
rmsofthecontractforemploymen
t
forthePresidenttotheBoardofGovernorsinaconfidentialmanner.1
28
Someobserverscelebratethe
IADBsgovernance
structure,arguingthatitbetterpreservesthe
interestsofregionalmembers
thanothermultilateral
institutions.
NancyBirdsall(20
14),forexample,
notesthatintheIADBregiona
lmembershold
amajorityofthevotingpower,whereasnon-
borrowingmemberscollective
lyholdamajorityin
theWorldBank.1
29N
umerous
authorshavewarned,
however,thatvotingweightis
aninsufficient
measureofpowerandinfluencewithinan
organization(Schotter1981;H
osli1996).130S
trand
(2003),employingtheJohnsto
nvotingpowerindex,
calculatestheactualdistributionofvotingpower
intheIADBbasedonindividualcountriesvoting
powerwithincoalitiongroups
andthepowerofthe
coalitiongroupitself.Accordin
gtothiscalculation,
theUnitedStatesholds80%ofvotingpowerwithin
theIADB.1
31F
urther,asBirdsa
ll(2014)notesherself,
theUS,viaitsdefactovetopower,controlsthe
selectionoftheIADBsExecutiveVice-President
(EVP).Thisissignificantgiven
thattheEVPchairs
theLoanCommitteethatmus
tapproveanyproject
beforeitreachestheBoardof
Governorsforfinal
approval.132
2
Whatpercentageofthemembership
isin
volvedinleadershipelectionand
re-e
lectioninpractice?
Fullmembership.
(a)EachGovernorcannominateacandidate.
(b)
Eachmembercountryhasequal
amountofvotes(135)plusonevote
foreachshareofordinarycapital(
OC)stockoftheBank.
Themajority
oftotalvotingpowerofmembercountrieselectsthePresident,
includinganabsolutemajorityofgovernorsofregionalmembers.1
33
VotingpoweramongmembercountriesoftheIDBisasfollows:Latin
AmericanandtheCaribbeanhave50.0
15%,
UnitedStates30.0
06%
,
Canada4.0
01%
andthenon-reg
ionalmembers15.9
79%.
3
Isthereatime-bound,published,
exh
austiveprocessforleadership
elec
tionthatweighscompetence
aga
instthepublishedcriteria?
Yes.
Thecomprehensivesetofregulations134t
ogetherwiththe
agreementestablishingtheBank135is
publishedonline.
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30 Effective Leadership in International Organizations
II.
The
leaderhasclearperformanceexpectationswhicharetransparenta
ndconsistentwithMO/IOsoverarchinggoalsandwhichfacilitatesac
countability
1
Do
theleaderssetclearperformance
exp
ectationsforthemselves,which
are
transparentandconsistent?
TheIDBhasaseriesofstrategies
toachieveitsinstitutional
mandates.1
36
2
Isthereanexpectationthatthe
lead
ertranslatesoverarchinggoalsof
organizationintoamanageableand
clea
rstrategy?
Itisunclearifthereisaspecific,formalexpectationthatthePresiden
t
doso.
However,PresidentLuisM
orenodidreleaseafive-yearplan
titledBuildingOpportunityforthe
Majorityin2006thatlistsanumbe
r
ofspecificstrategiesandgoalsfo
rthe2007-2012period.1
37
3
Istheleaderobligedtodisclose
con
flictsofinterest?
Yes.
AllIDBemployeesmustdisc
loseconflictofintereststoprevent
thesituationfromescalatingintoanallegationofMisconduct.138
4
Istheleaderobligedtoadheretoa
pub
lishedcodeofethics?
Yes.
AllIDBemployeesadhereto
strictethicalstandardslaidoutin
the2012CodeofEthicsandProfessionalConduct.139T
heBoardof
ExecutiveDirectorsissubjecttoitsownCode.
III.
The
leaderhasadefinedperformancemanagementprogrammeandre
ceivesannualfeedbackonperform
ance
1
Istheleadersubjectedtoannual
performanceappraisal?
Noevidence.
2
Isremunerationorbenefitstiedto
the
outcomesoftheperformance
managementprogramme?
No.
AsofDecember2012,
thePresidenthasafixedsalaryof
$440,7
98(doesnotincludeExecutiveAllowanceof$78,8
89).140
3
Istheleaderofferedcoachingand
dev
elopmentopportunitytoaddress
wea
knessesovertime?
Noevidence.
IV.
Lea
dershipre-electionisbasedontra
nsparentprocessesandmetrics
1
Are
performancemanagement
criteriaconsideredbythefull
membershipinthere-appointment
process?
Noevidence.
2
Are
otherqualifiedcandidates
con
sideredinthere-election
process?
Noevidence.
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35Evaluation of Organizational Structures that Enable Effective Leadership
III.
The
leaderhasadefinedperformancemanagementprogrammeandre
ceivesannualfeedbackonperform
ance
1
Istheleadershipsubjectedtoannual
performanceappraisal?
Yes.
TheExecutiveBoardconductsadirectAnnualPerformance
ReviewoftheManagingDirector
(andDMDs),duringwhichMD
providesfeedbackonherownas
sessmentandthatoftheBoardin
thesamecontext.166
Thisannualexercise,
introducedin2009,
isbasedonadefined
framework.
Eachyear,boththeB
oardandtheManagingDirector
specifyperformanceobjectivesfo
reachother,againstwhichan
assessmentisconductedinthefollowingyear.Inconductingthis
exercise,
theBoardeachyearappointsaworkinggroupoffive
ExecutiveDirectors(withgeograp
hicalrepresentation)tooverseethe
process.
Theprocesscomprises
severaliterationsandinvolvesall
ExecutiveDirectors.
2
Isremunerationorbenefitstiedto
the
outcomesoftheperformance
managementprogramme?
ChristineLagardestermsofappointmentidentifyafixedsalaryof
$467,9
40perannum,whichisad
justedbytheincreaseinconsume
r
priceindexinthegreaterWashingtonarea.1
67
3
Istheleaderofferedcoachingand
dev
elopmentopportunitytoaddress
weaknessesovertime?
Yes.
IMForganizesmanagerialco
urses;themanagementteamhas
accesstothem.
IV.
Lea
dershipre-electionprocessisbasedontransparentprocessesand
metrics
1
Are
performancemanagementcriteria
con
sideredbythefullmembershipin
the
re-electionprocess?
Yes.
TheExecutiveBoard,
inconsultationwiththeentiremembership,
determineswhethertore-appointtheManagingDirector.Indoingso,
ittakesanaccountofMDsperfo
rmance.
AccordingtoIEO,
theBoardh
asthusfarplayed
onlyaproformaroleinselectingMDsandrenewing
theirappointments,withthea
ctualdecisionbeing
madebyasubsetofmember
countriesauthorities
throughanopaqueprocess.168
2
Are
otherqualifiedcandidates
con
sideredinthere-election
process?
Yes.
Inconsideringanyre-appoin
tmentoftheManagingDirector,the
ExecutiveBoard,representingthemembership,considersalloptions.
AccordingtoIEO,
thereisnoformalprocessfor
searchingforcandidates.
The
conventionthatthe
governmentsoftheircountriesoforiginpropose
candidateshasinthepastres
ultedinsome
competentpossiblecandidate
snotbeingput
forwardforavarietyofreason
sincludingdomestic
politicalfactorsorlackofenth
usiasmbythenational
authorities.1
69
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52 Effective Leadership in International Organizations
III.
The
leaderhasadefinedperformancemanagementprogrammeandre
ceivesannualfeedbackonperform
ance
1
Istheleadershipsubjectedtoannual
performanceappraisal?
Yes,
butnottothesameextenta
stheregularstaff.
Theevaluation
oftheorganizationandthePresid
entareoneandthesameifthe
Presidentisheldresponsibleforitsperformance.InternalEvaluation
Group(IEG)EvaluationoftheWo
rldBanksOrganizational
Effectiveness305r
eportpublished
inApril2012includedaspectsof
leadership.
Thereareinformalprocessesthatinformthe
management.306
2
Isremunerationorbenefitstiedto
the
outcomesoftheperformance
managementprogramme?
No,variationisverylimited.
Salariesfortopmanagementaredisclos
ed
inannualreports.3
07
3
Istheleaderofferedcoaching
and
developmentopportunitiesto
add
ressweaknessesovertime?
Onlyonanad-hocbasis.
DrKimhasapersonalcoachnamedMarshall
Goldsmith.3
08
IV.
Lea
dershipre-electionisbasedontra
nsparentprocessesandmetrics
1
Are
performancemanagementcriteria
con
sideredbythefullmembershipin
the
re-electionprocess?
Noevidence.
ThetwoBrettonWoodsorgan
izationsIMFand
WorldBankshowthatre-ap
pointmentisbased
ontwocriteria:(1)whethertheincumbentwishesto
stay;and(2)thedominantpolitics.3
09
2
Are
otherqualifiedcandidates
con
sideredinthere-election
process?
Yes.
Inpractice,competingnon-Am
ericancandidates
havenotbeenconsideredunt
ilthe2011election
inwhichtwonon-UScandidateswereputforthfor
election.3
10
V.
The
leaderhastheauthorityandmech
anismstoshiftstrategicprioritiestomeetchangingcircumstances
1
Doe
stheleaderhavetheauthority
tos
hiftstrategicprioritiesinlightof
externalchanges?
Yes,
thePresidentcanrecommen
dshiftsofstrategythorough
deliveringreportsfortheDevelopmentCommittee.3
11T
hegovernors
approvetheproposals.
2
Doe
stheMO/IOhaveprocesses
thatfacilitateimplementationofnew
stra
tegicpriorities?
Unclear.Amongmechanismsthatpartlyfacilitateimplementation
ofnewstrategies:reportsoftheD
evelopmentCommittee;agenda
andsummariesofmeetings;App
raisalreports(InternalCompletion
Reports(ICR);ProjectCompletionReports(PCR)etc.);Internal
EvaluationGroup(IEG)reports(th
eunitreportstotheBoardof
Governors,notmanagementoftheBank);InternationalDevelopmen
t
Association(IDA)reports.
TheonlyconstraintsaretheA
rticlesof
Agreement.312
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53Evaluation of Organizational Structures that Enable Effective Leadership
3
Whatpercentageofresourcesareset
asid
eforspecialinitiativesdecidedby
and
controlledbyasubsetofthefull
membership?
Thereisarapidgrowthintrustfunds,non-discretionarybudget
thatisbeingearmarked.3
13I
deally
,trustfundswouldbecloselylinke
d
totheWorldBanksstrategy,processesandoversight.However,
sincetrustfundsadd25%tothe
Banksadministrativebudget,the
incentivestoalignareweak.
Inaddition,
thebiggestcontributo
rsin2012areUSandUK($4,5
bn,
morethanonethirdoftotal),whic
hincreasesriskofcapturebythes
e
twocountries.
Trustfundsinfluencebehaviou
rsandpriorities;
donorswantthis.
Italsodistra
ctsotherresources
(notonlyfinancial,butalsohumanresources,
for
example).AlsoconsiderReimbursableAdvisory
Serviceswhencountriesask
forextraservices
(management,forexample,R
AMPprogramme
whereforafeetheWorldBan
kundertakes
managementofassets).314
VI.
The
leaderisexpectedtoattract,reta
inanddeveloptalentthrough-ou
ttheorganization
1
Doe
stheorganizationtakestaff
surveystoassessstaffsatisfaction
and
performanceanddoleaders
utilizetheresultsofthesesurveys?
Yes.
Thereare:(1)broadstaffsurveysconductedevery18months
torevealstaffsatisfactionwithma
nagers,
(2)360degreesexercise
whereonesolicitsinputsofsubordinatesand(3)amechanismofpe
er
reviewinplacetomakerecomme
ndationsforcorrection.
JimYong
Kimrecentlyconductedasurvey
ofits10,0
00employees.
Itrevealeda
cultureoffear,pervasivefearofriskandaterribleenvironmentfor
collaboration.3
15
Staffsurveyshavebeenplayin
gasurprisinglylarge
rolesinceKimcame.3
16
2
Isexecutivemanagementassessed
onmentoringandcoachingof
sub
ordinatestaff?
Noevidence.
Itisnotapriorityquestion.31
7
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55Evaluation of Organizational Structures that Enable Effective Leadership
j.WorldHealthOrganization(WHO)
Organization
WHO,
thedirectingandcoordinatingauthority
forhealthwithintheUnitedNation
s
system,isresponsibleforprovidingleadership
onglobalhealthmatters,shaping
thehealthresearchagendaandsettingnormsandstandards.
Headquartered
inGeneva,
Switzerland,
ithassixregionaloffices(Brazzaville,
theRepublicof
Congo;Wa
shingtonDC,
USA;NewDelhi,Ind
ia;Copenhagen,
Denmark;Cairo,
Egypt;and
Manila,
Philippines)and150countryoffices.
Governance
The194m
embercountriesgovernWHO,meetingannuallyattheWorldHealth
Assembly(WHA).Theassemblyappointsthe
director-general(DG),supervises
theorganiz
ationsfinancialpolicies,andreview
sandapprovestheproposed
programmebudget.TheWHAisadvisedbytheexecutiveboard(34members),
whoaretechnicallyqualifiedinthehealthfield
andareelectedforathree-year
term.
Lengthof
leadershipmandate
Fiveyears.
Income
Theproposedbudgetfor2014-2015is$3.98
billion.
Numberofstaff
8,0
00,spreadoverheadquarters,regionaloffi
cesandcountries.
Historyof
leadership
Pastdirector-generalswere:B.
Chisholm(from
Canada,
1948-1953);M.G.
Candau(Brazil,1953-1973);H.
Mahler(Denm
ark,
1973-1988);H.
Nakajima
(Japan,
1988-1998);G.H.
Brundtland(Norway,1998-2003);LeeJong-wook
(Republico
fKorea,
2003-2006[diedinoffice])andAndersNordstrm(Sweden,
2006-2007
[actingDG,replacingLee]).
MargaretChan,
thecurrentDG,wasappointedon9November2006.
Therehavebeennooutwardscandalsregardinganyoftheleaders.
Currenttrajectory
UnderChansleadership,
WHOhasundertakenmajorfinanc
ial,managerialand
governance-relatedreform
,layingoutitsprojectedtimeline,intermediatecheck-in
pointsandguidelines.
Thisreformhasbeenbothinternalandexternal-facing,
the
lattercoveringWHOsactivitieswithexternalstakeholders,in
cludingcountriesand
non-stateentities.
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59Evaluation of Organizational Structures that Enable Effective Leadership
3
Wh
atpercentageofresourcesareset
asideforspecialinitiativesdecidedby
andcontrolledbyasubsetofthefull
me
mbership?
76%ofWHOsfundsarevoluntarycontributionswithmostofthem
beinghighlyspecifiedastowhichdepartmentorhealthintervention
theyshouldbeusedfor.(http://w
hqlibdoc.w
ho.in
t/pb/2012-2013/
PB_
2012%E2%80%932013_en
g.p
df)
TheDirectorGeneralistrying
toensureafully-
financedbudget,throughthe
FinancingDialogue
Initiative.
Currently,somepar
tsofthebudgetare
over-fundedandsomeareun
der-funded.
According
toIanSmith,
ExecutiveDirector,DirectorGenerals
Office,
thecriticalelementsto
afinancedbudgetis
predictabilityandalignment.Itisessentialthatwe
knowhowmuchmoneyweh
ave,andwhenwe
willr
eceiveit.
Additionally,
itisimportantthatthe
resourcesarealignedwiththeorganizationswork,
withtheregions,staffingand
activities.
TheWHO
isdevelopingaportalwhichwillb
etransparent,
showingalltheresources,wh
eretheyhavebeen
spentandtowhattheyhave
beendedicatedto.
Thisisnotauniqueidea(UNDPhasamulti-donor
trustfundwebsiteasanexam
ple),butwillb
e
somethingnewforWHO.
VI.
Theleaderisexpectedtoattract,retainanddeveloptalentthrough-outtheorganization
1
Do
estheorganizationtakestaff
surveystoassessstaffsatisfaction
andperformanceanddoleaders
utilizetheresultsofthesesurveys?
Yes,
theorganizationconductsa
ndpublishesastakeholdersurvey
whichincludesbothexternalstakeholdersandinternalstaff.
The
resultsarepublishedinareport,
availableonthewebsite.
Itseems
thatfromthe2012survey,oneo
fthekeyfindingswasthat21%
ofexternaland25%ofinternalrespondentshavedoubtsregarding
WHOsabilitytotakethenecessarymeasurestoensurethe
independenceofitspublichealth
experts,similarproportionsvoiced
concernsaboutWHOsindependencefrominappropriateindustry
influence.
Thefullreportwiththesurveyfindingsisalsoonthe
website.
(http://www.w
ho.in
t/about/who_
perception_
survey_2012.pdf)
Thereisanothersurveycalled
thePerception
SurveythatisledbytheDep
artmentof
Communications,
ledbyane
xternalagency.
Itis
sharedwidelyinternallyandw
idelydiscussedby
theAssistantDirectorGenera
lsandtheRegional
Directors.
2
Istheleaderassessedonmentoring
andcoachingofsubordinatestaff?
Thisispartoftheperformanc
emanagementsystem
(PMDS)andistakenintoacc
ountinformally.
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60 Effective Leadership in International Organizations
VII.
MO
/IOhasstructuresthatencourage
managementtoengagewithdiv
erserangeofstakeholders
WHOisfairlyconservativeinthismatter.Thereis
anongoingprocessofreform
forengaginginnon-
stateactors.
Thecategoriesofengagementare
thefollowing:1)Governance
(wherestakeholders
canengageingovernancem
attersofWHO),2)
Collaboration(jointwork-plan
,projects,official
relationswithNGOsetc.),
3)Consultation(moread-
hoc,
due-diligence,conflictofinterest,development
ofstandards,sharingofinformation,expertiseand
know-how),4)Finance(non-stateactorscanmake
acontributiontoWHO),5)Contractsgiventothe
privatesectorforcarryingoutspecificpiecesof
work.
VIII.
MO
/IOhasstructuresthatengageexecutivemanagementthoroughlywithinternal/externalevaluations
WHOiscommittedtoaprogramofregular
evaluations,maintainingindependence,and
engaginginindependentevaluations.
theExecutive
Boardwillc
onductandevaluatethesefortheWHO.
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61Evaluation of Organizational Structures that Enable Effective Leadership
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65Evaluation of Organizational Structures that Enable Effective Leadership
3
Istheleaderofferedcoaching
and
developmentopportunitiesto
add
ressweaknessesovertime?
Yes,uponrequest.350
Coachingandexecutivemanagementsessionsby
externalcoachesareofferedt
oseniormanagement
uponrequest.SeniorExecutiv
eRetreats(for
DG;DDGsandDirectors)havebeenintroduced
todiscussopenlyandcollectivelytheWTOs
performancemanagementprogrammeand
developmentfeedback.3
51
IV.
Lea
dershipre-electionisbasedontransparentprocessesandmetrics
1
Are
performancemanagementcriteria
con
sideredbythefullmembershipin
the
re-electionprocess?
Noevidence.
2
Are
otherqualifiedcandidates
con
sideredinthere-election
process?
Yes,
ifnewcandidatesarenominated.
Inpractice,attheendofthen
ominationperiodin
2009,
PascalLamywastheo
nlycandidateandwas
re-appointed.
V.
The
leaderhastheauthorityandmech
anismstoshiftstrategicprioritiestomeetchangingcircumstances
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68 Effective Leadership in International Organizations
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