Description of the rationale and method for implementing a stringent reporting framework for NPO's at national and continental levels.

1. M&E Project (Africa)
M&E projet (Afrique)
Promoting Democracy and Development by strengthening M&E
and National Associations
La promotion de la démocratie et le développement en renforçant
M&E et les Associations nationales
20 February 2012
Errol Goetsch
+27 78 573 5046
errol@xe4.org
www.xe4.org
20 Feb 2012 © E Goetsch CSI 2011 1

2. Errol Goetsch
Director: Centre for Social Impact
+27 78 573 5046
errol@xe4.org
Family Banking system mergers
Live: Johannesburg Corporate Governance reviews
Born: Windhoek Durban Basic Needs Mapping
Studied Durban Ordnances Rewrite
BA Honours LLB MBA now Ph.D. East London Municipality HIV/Aids impact
Lecturer / Tutor Electronic banking systems
Economics / Strategy / Project Management Impact Measurement System
Managerial Finance / Marketing Information system roll-out x 2
Organisational Behaviour / Politics KwaZulu Finance Corporation collateralisation
Employ KwaZulu Local Economic Development
Merchant Investors Group (London) LoveLife HIV/Aids
Boland / Absa Group / Nedcor Banks National Housing Conference
IQ Group Peer Education System
Inkatha Institute PPP: Cato Manor Land Scheme
Audited PPP: Durban Waterfront
100’s of projects PPP: Ndwedwe Electrification Programme
Design Software PPP: Water 2000
Auditing / M&E Tools & Reports / Sustainability / Sedibeng Municipality Protest Management System
Impact / Capacity / Corporate Governance / Swaziland Textile Industry revival
Balanced Scorecards / KAP tools / HIV Aids World bank Projects Nigeria
Impact / Job Descriptions / Capacity Audits Zambia Commodity Exchange
20 Feb 2012 © E Goetsch CSI 2011 2

3. Role of M&E (Telling Truth to Power)
Transparency => Accountability => Development and Democracy
Formula See SOLUTION Series of Promises Paper Trail
Results change Actual direct + indirect beneficiaries Impact
Community
Assessment
Benefits End-Term
Benefits deliver Set of products and services delivered
= reports
Mid-Term
Projects design Delivery mechanism
reports
Progress
Work Agencies decide Designer and Implementer of Solution reports
Time
Programmes choose Development priority Work Plans
x
Intermediaries collect Government / Donor Agency / Bank Budgets
Receipts
Money care Taxpayer / Shareholder / Benefactor
Donors Proposals
Costs
See PROBLEM Baseline
12/02/20 © E Goetsch CSI 2011 3

4. Problem Statement
Too little Delivery / Transprarency for Democracy / Development
Delivery Gap in Projects
Focus is on projects that
Promise - Performance gap
Design gap make promises to donors
Corporate Governance failure and owe delivery to
Capacity gap communities
– Management gap
– Organisational Sustainability Public Duty of Transparency
– Project Excellence and Accountability for sake
– Social Impact of Development and
– Donor drift / National indicators
democracy
Transparency Gap in Reporting
M&E incomplete (not full cash flow)
M&Esuperficial (not interrogate promise) Focus is on raising M&E
M&E narrow (not industry wide) standards and getting the
M&E private (not public) money, tools and support
M&E weak (not enforced / protected) that involves
20 Feb 2012 © E Goetsch CSI 2011 4

5. SA Experience: Frustration
Donor Fatigue Donor expectations rising / NPO performance falling
Falling Agency Rising donor Donor Expectations
capacity expectations Initially naïve,
trusting NPO’s will deliver;
impose few reporting and
proof requirements.
Sullivan Code made CSI
cosmetic; no investment in
“back-office” design, funding
Increasing donor field-office delivery instead.
frustration and
Agency anxiety at Agency Performance
cross-over Initially well-run,
in regulated environment,
then heavily funded from
abroad with weak auditing,
with little investment in
institutional capacity,
loss of talent and diversion
Rising social Falling Agency
of money since 1994
needs performance
70’s 80’s 90’s 00’s 10’s
20 February 2012 © E Goetsch CSI 2011 5

6. SA Experience: Elite Capture
(2) Flight to Quality Donors fund western NGO’s and M&E Firms
Income
Richer NGO’s
market
themselves well
Money for M&E
captured at
source
Donors shift to
richer NGO’s
African M&E
practitioners are far
from source
Poorer NGO’s
market themselves
poorly
Number
20 February 2012 © E Goetsch CSI 2011 6

7. SA Experience: CSI Solution
A possible route for African M&E and National Associations
1. Take advantage of supportive environment
2. Develop a national audit format for projects
3. Submit it for Legislative backing as annual public report format
(this does not stop or change the normal M&E process)
4.Include other elements strengthening M&E
- Establish
- Protocol Training Centre
- Protocol Certification Centre Ideally, this involves or
- Register of Projects establishes the National
- Code of Donor Conduct Association – but not
- Audit Fund necessarily
- Allocate Auditor
- Receive Report
- Submit Report
- Transfer Payment
20 Feb 2012 © E Goetsch CSI 2011 7

8. CSI Report - Standard Format
The 7 Numbers Donors want to know and Projects need to show
1 The 4 The 10 The
Actual 100% Project’s
E Project’s Project’s
3 The
=
Organisation Impact Excellence Products
Target Date
E X E Pay off
3 The 2 The
Agency’s Objectives Proof
E
Capacity Q Progress
Community Products
D Benefits Premises
Q 4 The Agency’s
D Projects Power
Sustainability
Agencies People
D Programmes Payments T
Intermediaries Payers R L
7 The
Cash Flow Donors Policies
S
20 Feb 2012 © E Goetsch CSI 2011 8

9. Statutory Report 1: Project Score
M&E carries the measurement of overall performance
Project
Special purpose
Actual 100% unique outcome
= Term-limited
Target Time defined end-date
Planned
M&E applies the has targets for:
Universal 1. Input (cost)
Management 2. Work (time)
Equation to project 3. Output (benefits)
performance 4. Outcome (impact)
Implemented
Has actuals vs. targets
20 Feb 2012 © E Goetsch CSI 2011 9

10. Statutory Report 2: Governance
The Vertical Roles, Rights and Responsibilities for Results
Who / Do / Result
Where Need What
Directors Decide Strategy TARGETS
Actuals
D Board room Balance / Authority questions
Management Design System
D Head Office Responsibility / Skill
SCORE = Score %
D Staff Deliver Operations ACTUALS Targets
Field Office Presence / Effort answers
Corporate Governance
= capacity to balance Decisions, Designs and Delivery
= score 100% in targets high enough to matter, low enough to happen
20 Feb 2012 © E Goetsch CSI 2011 10

11. Statutory Report 3: Capacity
The Horizontal Roles, Rights and Responsibilities for Results
100%
D
D
D
Policy Payers Payments People Places Power Products Progress Proof Pay off
R&D Marketing Finance HR Facilities Procure Project Risk M&E Strategy
ment
Why What What Who Where How When What What Who For
for with with If
20 Feb 2012 © E Goetsch CSI 2011 11

12. Statutory Report 4 – Project Budget
Quantity Theory of Management: The full range of areas to count
20 Feb 2012 © E Goetsch CSI 2011 12

13. Statutory Report 5: Project Excellence
The formula for Project Excellence
X = E X C E L L E N C E
COSTS Time Human Resources
Try reduce Work
Organisations
$ Performance #
Inputs Efficiency Outputs
Factor Market Goods Market
%
Capacity Benefits
Outcomes
Economy Effectiveness
Households
Procurement Impact Production
BENEFITS
Strategy C/B Equity Try increase
20 Feb 2012 © E Goetsch CSI 2011 13

14. Statutory Report 6 - Sustainability
Corporate Governance: the roles and responsibility for Sustainability
PEOPLE
Need as many people as it TRUST
takes to do the work to Untied Funding
achieve vision and mission
PROMISES HR OPERATIONS PERFORMANCE
MARKETING Design
make Need keep as
promises to Capacity Repeat
New many promises as
get people People
People were made
and money and
and FINANCE Money
Money Delivery
New Capacity Repeat
Income Income
PAYMENTS
RESPECT Sustainability LOYALTY
Need as much
DIGNITY money as the
people need
20 Feb 2012 © E Goetsch CSI 2011 14

15. Statutory Report 7 – Cash Flow
The money that moved from donor to public and where it went
Formula See SOLUTION Series of Promises Paper Trail
Results change Actual direct + indirect beneficiaries Impact
Community
Assessment
Benefits End-Term
Benefits deliver Set of products and services delivered
= reports
Mid-Term
Projects design Delivery mechanism
reports
Progress
Work Agencies decide Designer and Implementer of Solution reports
Time
Programmes choose Development priority Work Plans
x
Intermediaries collect Government / Donor Agency / Bank Budgets
Receipts
Money care Taxpayer / Shareholder / Benefactor
Donors Proposals
Costs
See PROBLEM Baseline
12/02/20 © E Goetsch CSI 2011 15

16. Project M&E Support
CSI will help each National Association
1. Offer our national audit format
2. Offer our Legislation
3. Help establish
- online Protocol Training Centre
- online Protocol Certification Centre
- online Register of Projects
- online Code of Donor Conduct
- Audit Fund
- online Register of Auditor
- online Report submission
- online Payment
4. Memorandum of Association with National Association (or
alternative)
20 Feb 2012 © E Goetsch CSI 2011 16

17. Project M&E Support: Xmentoring
The online delivery of full design capacity (pilot funded by the NDA)
XmentoringTM Strategy
shared Knowledge R&D
services model
Registered to the
Marketing HR
Centre for Social
Impact
Pilot funded by the Design Mentor
NDA Team
Risk Finance
Product Procure
ion ment
Project Facilities
Agency
Delivery
Project 1 Project 2 CBO 1 CBO 2
Project Project
20 Feb 2012 © E Goetsch CSI 2011 17

18. QUESTIONS
M&E Project (Africa)
Promoting Democracy and Development by
strengthening M&E and National Associations
20 February 2012
Errol Goetsch
+27 78 573 5046
errol@xe4.org
www.xe4.org
20 Feb 2012 © E Goetsch CSI 2011 18