Operations Day: Sharing experiences to achieve greater impact

Why is there an “Operations Day”?

At the Inter-American Development Bank (IDB), we are exploring various ways to learn through experiences in project execution and thus be able to share them with our partners in Latin America and the Caribbean. We know it is not enough to just have cutting-edge ideas, sophisticated tools such as artificial intelligence (AI), and advanced methods, we must also see in practice what works and why. 

We have developed spaces for reflection that we call “Operations Day”, and we have carried them out in several countries in Latin America and the Caribbean, such as Barbados. The objective of this space is to support the continuous improvement of project management, and its effectiveness in development. through the exchange of operational knowledge and best practices among executors of projects financed by the IDB. In this article we will tell you about our most recent experience in Honduras. 

How does it work? 

The exercise includes three segments, flowing from general to specific. We begin by highlighting the importance of achieving development impact, following the new Institutional Strategy of the IDB Group: Impact+. Then, we continue with the importance of focusing on the execution of projects considered “critical products” that are key to achieving results. Finally, we address measuring results at the end of projects as well as sustainability. 

We emphasize that we do not have to wait until the closing stage to think and act on results and sustainability. We promote it as a constant effort throughout the entire project cycle. 

What are the key issues we addressed in Honduras? 

In the first segment, the conversation focused on the relevance of the results of public investment projects and their impact on the country’s development. Then, we addressed the IDB Group’s Country Strategy, which allows the programming of operations to be results-oriented, risk-based, programmatic, flexible, and responsive to the country’s priorities. 

In this context, a dialogue was generated among the members of the Executing Units. The objective was to align the results of the projects with the priority areas of the Country Strategy and explore new ideas and opportunities to support them in a multi-sectoral manner. The participants made several proposals related to the three axes of the Country Strategy: 1) strengthening fiscal institutions and increasing spending efficiency; 2) accumulation of human capital; and 3) expansion of sustainable productive opportunities. 

Regarding the first axis, some of the proposals were: establishing synergies with the private sector to improve customs compliance, promoting the use of Information Technology, and digitalization of the public sector. In the second axis, some of the ideas were: the expansion of Sustainable Productive Communities; strategic alliances with private companies; and enhancing youth leadership and counteract illicit associations by strengthening institutions. In the third axis, the participants proposed: the inclusion of private companies in developing economic sector strategies linked to vulnerable groups; and the digitalization of foreign trade processes to promote productive development. 

In the second segment, we address the IDB’s Development Effectiveness Framework (DEF). We highlighted the current challenges the region faces and how to strengthen the culture of impact and delivery of results. 

We also engaged in a frank and open dialogue between the Bank’s team and the executing units about the experience of the portfolio review, focusing on results. The portfolio review is a semi-annual or annual exercise carried out by the Secretary of Finance (SEFIN), the executing units, and the IDB team to review the progress of the Project Execution Plans (PEP). In this space, we also highlight the importance of complementing the analysis of the physical and financial progress of each project, with a results-oriented approach. 

As an example, the team from the National Electric Energy Company (ENEE) presented its results-based approach (detailing indicators, baseline, goals, critical products – those with the greatest impact on achieving results – and risks) in “Support to the National Electric Energy Transmission Program”. This project is the first practical example of the application of the new ‘critical products’ methodology in Honduras. 

In the third segment, we discussed project closure reports as a key tool for learning and accountability. This allows us to assess whether resources were used efficiently, with a systematic and evidence-based approach. 

In addition, we identified the risks that may affect the sustainability of project results in the political, environmental, financial, technical, economic, and social dimensions. We also proposed actions to mitigate these risks, for example, one of the social risks identified was the lack of credibility of the communities towards the entities that manage the projects. Therefore, the socialization and involvement of the communities was proposed as a mitigation measure. 

Lessons learned

The ENEE executing unit team, which worked on the pilot experience of the results-based portfolio review, shared the following lessons learned from the exercise: 

• Effective communication. The importance of promoting a clear understanding of the project logic and progress of the results indicators was reiterated. This allows fast identification of areas requiring attention. 
• Long-term vision. Focus on the project objectives, beyond daily and short-term activities. 
• Identification of critical products. It promotes dialogue and close monitoring of the results. 
• Reinforces the impact analysis. It helps to evaluate the probability of achieving the expected results with the established products. 
• Probability analysis. It allows for an analysis of the probability of achieving results based on the status of the critical products. 
• Prepare the final evaluation analysis. Monitoring the results allows for anticipating the level of effectiveness of the operation, so teams can take early action. 

“Operations Day” reminds us that people want to “do work that is valued, relevant and meaningful” as Hoffman et. al. said in The Smart Mission (2022, p. 104). Therefore, on this day, we renew our commitment to generate a greater positive impact on the quality of life of people and the development of countries in the region.