Project Management Body of Knowledge (PMBoK)

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In order to effectively implement the PSDP strategy as laid-out above, IFAD will have to revise its operating model and internal processes. This will include the following:

Mainstreaming the strategy into IFAD operations. Once the strategy is approved, it will need to be mainstreamed into IFAD’s operations and internalized by its staff. On the basis of the measurable objectives and outputs provided in the results framework, each IFAD unit or division will have to identify the

activities that will be undertaken to achieve the common objectives, and include these

activities in their annual workplan and budget. The divisional planned activities will then be aggregated at the departmental level, for a consolidated workplan and budget that is consistent with the overall objectives and outputs of the PSDP strategy.

As discussed above, IFAD reports, such as COSOPs and project design documents (when appropriate), will include an

assessment of private-sector development in rural areas and will reflect partnerships and engagement possibilities with the private sector. Legal and financial procedures related to partnering with the private sector will also be developed and internalized within IFAD. Similarly, IFAD’s portfolio review and its results and impact management system (RIMS) indicators will include reporting on IFAD’s engagement with the private sector (see Measuring results and impact).

Guidelines, staff training and staff

realignment. IFAD will develop guidelines (or a tool kit) for IFAD operations staff, to assist them in operationalizing the strategy. In fact, a draft operational manual entitled Private- Sector Development and Partnership Manual is in the process of being finalized with the support of IMI funds. The manual states that it: “currently consists of guidelines on partnerships with the private sector at the corporate level, in conformity with UN

It is also important for IFAD staff to have a common understanding of how the PSDP strategy ties in with IFAD’s mission and how to manage it in their programmes. Therefore, IFAD will provide training to its staff on how to partner with or engage the private sector in their operational work. This would include guidance in areas such as: approaches and processes for consulting with private-sector players (national and local) in order to identify the need for and barriers to further private-sector growth; techniques for the analysis of potential private- sector partners; procedures for the development of concrete partnerships (both financial and non-financial); and means to measure the results and impacts of these initiatives.

An IFAD staff member in the Programme Management Department will be appointed as the focal point for the private sector. The staff member will be responsible for providing support to his/her colleagues on issues related to linking to the private sector, following up on the operational implementation of the strategy, preparing progress reports, and monitoring and evaluating performance.16

Measuring results and impact. The proposed medium-term time frame for achieving the objectives and outputs of the PSDP strategy, as outlined in the annex, is from 2005 to 2008. Therefore, a gradual implementation will be undertaken, with a view to reaching all targets by the end of 2008. Given that the extent of private-sector development may vary among subsectors and among regions, and that the interest of private-sector partners may be stronger for certain countries or subsectors, each individual division will not be asked to achieve all targets in all areas. Instead, and at least in this initial phase of the strategy, IFAD will measure its performance at the aggregate level, with a view to gradually redressing subsectoral and regional imbalances.

An important part of implementing and operationalizing the strategy will be the

16_{Another focal point,}

located in the Resource Mobilization Unit, will be responsible for mobilizing resources from the private sector for IFAD corporate activities. However, as noted in footnote 13, this resource mobilization function will require a resource mobilization

related monitoring and reporting tools will be expanded or revised to capture key indicators related to PSDP. IFAD presently has six impact domains within the existing evaluation

framework: physical and financial assets; human assets; social capital and people’s empowerment; food security (production, income and consumption); environment and common resources; and institutions, policies and regulatory framework. Most of these domains contain aspects that relate to the successful development of the private sector. It should therefore be possible to attribute specific and tangible benefits to smallholders or entrepreneurs that derive from efforts to partner with private-sector actors within a project. The PSDP strategy will be monitored through the RIMS and through the Progress Report on the Project Portfolio, presented annually to the Executive Board.

Capturing, reporting and sharing lessons learned. As an issue related to measuring results and impact, it is crucial to analyse and document what works and what does not in IFAD’s approach to PSDP. IFAD will need to learn from its successes and mistakes. This includes identifying the factors behind successful or unsuccessful PSDP initiatives. Drawing lessons from ongoing experiences and sharing these within IFAD and with other development partners will allow IFAD to improve its way of working with the private sector and enhance the impact of its operations on the rural poor. Capturing the lessons learned should be a continuous activity, with stocktaking conducted every few years to assess whether IFAD is moving in the right direction or whether there is a need to change direction or fine-tune the strategy and/or its operational guidelines. It is proposed that an evaluation of the PSDP