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Managing for results means that we seek to define and organize our work around the end result we seek to accomplish. USAID defines a result as:

The results that are of interest to USAID, its customers and stakeholders are:

Strategic Objective -- the highest level result for which a USAID Operating Unit is held accountable.

Intermediate Results -- those results that are essential steps to the achievement of a Strategic Objective. They are measurable results that may capture a number of discrete and more specific results. Intermediate Results and associated outputs are the highest level of result for which Development Partners are typically held accountable. (ADS Chapters 200-203)

How does USAID manage for results? The Results Act (GPRA) of 1993 requires all Federal Agencies to establish a Strategic Plan, an Annual Performance Plan, and an Annual Performance Report to focus on the achievement of measurable results.

USAID works with Development Partners to achieve results consistent with the Foreign Assistance Act of 1961 and the Results Act of 1993. USAID needs partners who:

• believe in USAID's mission, goals, and objectives;
• are focused on customers;
• are oriented to managing for results (planning, achieving, and monitoring and evaluating performance);
• are willing to practice principles of teamwork and participation with USAID technical, procurement, and other support staff and with USAID's customers and stakeholders; and
• are empowered to make decisions and account for the results of those decisions.

Both USAID and its Development Partners share accountability for results, with the understanding that in development work, we almost never have total control over the results we seek to accomplish. Thus we must make informed choices about what results are in our manageable interest, manage proactively toward those results, modify when necessary, and learn from successes and failures.

Key Steps in Managing for Results

Broadly speaking, there are three key procedures or steps in managing for results:

These steps are described in detail in ADS 200-203

Planning (ADS 201) is used in the management of Agency assistance programs to serve the following purposes:

• To ensure that the efforts of the Agency's operating units are directed toward achieving significant development impact in priority areas through a participatory process involving stakeholders, partners, and customers.
• To provide a structure which allows operating units to make program choices and effectively respond to evolving circumstances.
• To establish a framework for monitoring the progress and effectiveness of the Agency's programs in accomplishing its objectives and allocating Agency resources.

Strategic Plan

In consultation with Congress, the U.S. State Department, Office of Management and Budget, and other interested stakeholders, partners, and customers, the Agency has developed a Strategic Plan for its programs which:

• defines the broad strategic framework within which operating unit strategic plans will be developed;
• articulates what the Agency expects to achieve in facilitating sustainable development world-wide and by incorporating the needs of the Agency's customers;
• defines USAID goals and priority objectives which contribute to the Agency mission of sustainable development;
• establishes a basis for allocating resources; and
• serves as the basis for presenting the Agency's programs and budget requests to Congress and the public.

The Agency Strategic Plan is amended as necessary based on significant changes in U.S. national interests, geopolitical considerations, country and customer needs, progress or lack of progress in achieving Agency goals and objectives, and/or new technical knowledge in a sector.

Strategic Framework

Along with the Agency Strategic Plan, the Agency has established an Agency strategic framework that graphically depicts the Agency's Strategic Plan.

Components of the Strategic Plan Strategic Objective:

A strategic objective (SO) is the most ambitious and significant result (intended measurable change) in a particular program area that a USAID Mission or Operating Unit, along with its partners, can materially affect and for which USAID is willing to be held responsible. The strategic objective forms the standard by which the operational unit is willing to be judged on its performance. The time-frame for the achievement of a strategic objective is typically 3-8 years for sustainable development programs, but may be shorter for programs operating under short-term transitional circumstances or in conditions of uncertainty. Each strategic objective shall be linked to one principal Agency goal and one principal Agency Objective SOs should be expressed in terms of a result or impact that permits objective measurement and is clear and precise.

Special Objectives:

Under exceptional circumstances, a mission or office may include activities in its portfolio which could not be associated with existing operating unit objectives, but which produce results to support other U.S. Government assistance objectives. Special objectives may be justified if one or more of the following criteria are met:

• the activity is a response to a legislated earmark or special foreign policy interest that does not meet the criteria for a strategic objective;
• responds to an emergency or short-term post crisis stabilization effort, such as when a Medium-term or Interim Strategy is indicated;
• it is an exploratory/experimental activity in a new program area which merits further exploration or which responds to new developments in the country, region, or sector;
• it is a research activity which contributes to the achievement of an Agency goal; or
• is to support achievement of multiple SOs.

Results Framework for each Strategic Objective

The results framework must provide enough information so that it adequately illustrates the development hypothesis (or cause and effect linkages) represented in the strategy and therefore assists in communicating the basic premises of the strategy. The results framework shall include any key Intermediate Results (IRs) that are produced by other development partners (e.g., partners such as nongovernmental organizations, the host country government, other donors, and customers).

The Results Framework narrative includes any critical assumptions that must hold in order for the development hypothesis to lead to the achievement of the relevant objective. A critical assumption is defined as a general condition under which the development hypothesis or strategy for achieving the objective will hold true. Critical assumptions are outside the control or influence of USAID and its partners (i.e., they are not results), but they reflect conditions that are likely to affect the achievement of results in the Results Framework.

In considering potential IRs for inclusion in a Results Framework, it is important to understand the difference between outputs and results. The creation of outputs is generally under the direct control of an implementing entity (grantee or contract institution) using resources provided. For example, deliverables under a contract are outputs. In differentiating outputs from results, it can be useful to think of results as developmentally significant events that may impact on customers, while outputs are lower-level steps that are not developmentally significant in themselves but are essential in achieving results. Outputs may affect ultimate customers but in a much more limited way than IRs. There should always be a direct link between outputs and IRs. However, it may take many outputs from several activities over a period of time to create measurable impact at an IR or SO level.

A Results Framework serves as both a planning and a management tool. The Results Framework is central to the Strategic Plan and provides a program-level framework for managers to gauge progress toward the achievement of results and to make appropriate adjustments to relevant programs and activities. In addition, the design of a Results Framework provides an important opportunity for an Operating Unit to work with its development partners and customers to build consensus and ownership around shared objectives and the approaches to meeting those objectives. Results Frameworks also function as effective communication tools because they succinctly capture the key elements of a strategy for achieving an objective (i.e., program intent and content). Finally, as management tools, Results Frameworks are the foundation for several critical programmatic events and processes:

• Reaching agreement both within the Operating Unit and between the Operating Unit and relevant USAID/Washington Bureaus on expected results and required resources.
• Identifying and designing activities.
• Selecting appropriate indicators for each USAID-supported result and developing the Operating Unit's performance monitoring and evaluation systems.
• Using performance information to alter program management decisions (e.g., adjusting specific program activities).
• Analyzing and reporting on performance through the R4 process.

The following figure illustrates a sample Results Framework. It includes more boxes than are typically seen in a strategy document in order to illustrate several possibilities. It also shows a level of detail that may be used by an SO Team to plan specific activities. An Agency objective is included in this diagram to show the linkage between the SO and that Agency objective. If a program framework goal was used to guide SO planning, it could be added between the Agency Goal and the SO. Shaded boxes indicate Intermediate Results that are either co-funded with other partners or exclusively funded by them. Shaded boxes could also be used to identify results pursued through other USAID funded SOs. Causal links may connect IRs either vertically or horizontally. Finally, critical assumptions are listed at the bottom. Endnote 3

Illustrative Results Framework Related Links:

Agency Strategic Plan (PDF 112KB)

Agency Congressional Presentations will have a summary of the strategic objectives of each Mission and Washington-based Operating Unit.

Building a Results Framework (PDF 197KB)

Effective management of Agency development and humanitarian assistance programs and resources requires an emphasis on achieving results through team effort and customer focus (ADS 202). The principles of achieving results are:

• ensuring that the efforts of the Agency's operating units are directed toward achieving significant development impact in priority areas through a participatory process involving stakeholders, partners, and customers;
• providing a structure which allows operating units to make program choices and effectively respond to evolving circumstances;
• emphasizing the accomplishment of results;
• identifying and meeting customer needs;
• promoting a teamwork approach, including U.S. Agency for International Development (USAID) staff, partners, and customers;
• providing a significant level of empowerment and accountability for those individuals and management units closest to the development and humanitarian problems being addressed; and
• promoting the regular collection and review of data and information related to performance resulting in the continuous improvement of the implementation of development assistance; the effectiveness of management decisions and processes; the means by which the Agency learns through its experience; and the ability of the Agency to meet accountability and reporting requirements.

STRATEGIC OBJECTIVE TEAM - The operating unit shall establish a strategic objective team for each strategic objectiveand special objective defined in the approved strategic plan.

Related Link: USAID's core value: teamwork

Regular collection and analysis of data and information related to performance is essential in order to continuously improve:

• the planning and implementation of development assistance;
• the effectiveness of management decisions and processes;
• the means by which the Agency learns from experience; and
• USAID's ability to meet accountability and reporting requirements (ADS 203).

The tools of assessing, learning, and sharing are interrelated through the concept of performance management. As defined in ADS 200.6.2, performance management is:

• the systematic process of monitoring the results of activities;
• collecting and analyzing performance information to track progress toward planned results;
• using performance information to inform program decision making and resource allocation; and
• communicating results achieved, or not attained, to advance organizational learning and tell the Agency's story.

Performance management represents the commitment of the Agency to manage programs with greater accountability and for the most advantageous development outcomes. At a high-level, performance management is a four-part process, as described below.

a. Planning to monitor results. As an Operating Unit develops its Strategic Plan, it should define the intended results or changes the planned strategy will affect. Concurrently, the Operating Unit should consider how it will assess progress toward those results. Planning to monitor results involves determining:

• Tools (e.g., performance indicators, evaluations, special studies) that will be used to measure progress over time;
• Current situation (performance baseline) and the change in the situation that will signal success (performance target);
• Data collection methods that will be used, the frequency of data collection and the responsibility for data compilation and analysis or interpretation; and
• How data will be used in the appropriate level of decision making, resource allocation, and communicating the Operating Unit's story.

b. Collecting and analyzing performance information to track progress toward planned results. Performance information can come from a variety of sources-performance indicators, partner progress reports, periodic evaluations or assessments, or Portfolio Reviews. The source and frequency of information will vary according to management needs. For day-to-day feedback on activity implementation, Operating Units generally rely on direct communication with partners and the narrative provided in their progress reports. For an indication of progress towards planned results, Operating Units should rely more on performance indicator data in the Performance Management Plan for each SO.

c. Using performance information to inform program decision-making and resource allocation. Operating Units usually have varying information needs for decision-making depending on where the Operating Unit is in implementing the SO. The evolving levels of performance information over the life of an SO are shown graphically in Figure 203A, "Measuring Performance Over Time". Early in the life of an SO, Operating Units should use input and output data to make informed decisions. (See definitions for Input and Output in ADS 200.6.2) Later, input and output data may become less meaningful for program decision-making purposes, and Operating Units should base program decisions on whether the activities are yielding planned results. Therefore, Operating Units will need information that measures progress at the Intermediate Results (IR) and Strategic Objective (SO) level. (See definitions for Intermediate Results and Strategic Objective in ADS 200.6.2) Figure 203B, "Levels of Results", shows a pyramid in which the levels of results that an Operating Unit is responsible for (activity, IR, and SO level) contribute to achieving results in Agency goal areas. The greatest quantity of performance information is likely to be available and needed at the level closest to the implementation of the activities, with the quantity of information decreasing as the distance from the activity itself increases.

d. Communicating results achieved, or not achieved, to advance organizational learning and tell the Agency's story. Communication allows an Operating Unit to tell its story to its various stakeholders and facilitates learning within the Agency. One part of communication is submitting required reports (such as the Annual Report) to USAID/W. Communication is also a powerful element of performance management for achieving better results. For example, Operating Units should share performance information with partners and customers, in order to mobilize the knowledge and experience of key stakeholders to identify ways to improve results.

Annual Report

The Annual Report must address the USAID Operating Unit's performance for the immediate past fiscal year, focusing on progress made towards achievement of the strategic objectives and special objectives.

Related Link: Monitoring and Evaluating Performance

Performance Accountability Report (formerly the Agency Performance Report) Consistent with the Results Act 1993 (GPRA), the Agency shall prepare and submit, by March 31 of each year, a report to the President and Congress on the Agency's program performance for the previous fiscal year.

The report must:

• review progress towards objectives over the past fiscal year;
• examine Agency plans for the current fiscal year relative to the performance achieved in the fiscal year covered by the report;
• when appropriate, explain why the objective was not met, describe plans and schedules for improving progress towards the established objective, and, if the objective is determined to be impractical or not feasible, explain why that is the case and what action is recommended;
• describe the use and effectiveness in achieving objectives of any waiver under section 9703 of the GPRA; and
• include summary findings of evaluations, as deemed appropriate, completed during the fiscal year covered by the report.

For Agency Performance Reports, please follow the links from USAID Publications and Partner Resources.

Relevant Links:

Managing for Results

Planning and Managing for Results (PDF 23KB) Under Reengineering: Early Lessons from the Field

Managing for Results in a Regional Mission: (PDF 28KB) USAID/Central Asia's Experience

Endnote 3

Figure 201A, Illustrative Results Framework (for Upper River Zone) - This graphic depicts a flowchart that represents a sample USAID Results Framework. Results Framework depicts a typical agriculture program, where USAID supports a series of results that provide a foundation promoting innovation by small farmers. Such results include providing credit, improving the ability of farmers to access credit, and developing bankable initiatives. Another set of results addresses the strengthening of farmer associations, another the development and spread of innovative technologies, and yet another improvements to the overall policy environment. The results framework provides more detail than might be shown at the time of formal approval, but illustrates how a Results Framework can be operationally detailed enough for implementation purposes. It also illustrates how a Results Framework can identify results partially or entirely funded by donors other than USAID.

Four major levels are shown:

• the Agency Objective level,
• the Strategic Objective level,
• the Intermediate Result level, and
• the sub-Intermediate Result level.

The flowchart portrays the Agency Objective (in this case, "More rapid and enhanced agricultural development and food security encouraged") as the first box on the top of the page. Below this is a box for the Strategic Objective ("Increased use of improved production practices by farmers in the Upper River Zone (6 years)"), with an arrow flowing upwards into the Agency Objective box.

The next level in the flowchart depicts boxes for the IR-level results, with arrows flowing upwards into the Strategic Objective box. The four IRs shown are:

(1) IR 1: "Farmers' access to commercial capital increased (5 years)";

(2) IR 2: "Farmers' transport costs decreased (5 years)";

(3) IR 3: "Community control over local resources increased (5 years)"; and

(4) IR 4: "Farmer's knowledge about production options increased (4 years)."

The next level in the flowchart depicts boxes for sub-IRs. IR 1 has two sub-IRs:

(1) IR 1.1: "Farmers' capacity to develop bankable loan applications increased (4 years)"; and

(2) IR 1.2: "Banks' loan policies become more favorable for rural sector (3 years)." These two sub-IR boxes have arrows flowing upwards into the IR 1 box.

IR 2 has two sub-IRs:

(1) IR 2.1: "Village associations' capacity to negotiate contracts increased (4 years)"; and

(2) IR 2.2: "Input/output markets liberalized (3 years) Achieved in collaboration with the World Bank." These two sub-IR boxes have arrows flowing upwards into the IR 2 box.

IR 3 has two sub-IRs:

(1) IR 3.1: "Village associations' control over local resources increased (4 years)"; and

(2) IR 3.2: "Role of forestry agents in the Upper River Zone changed from regulatory to outreach (2 years) host government." These two sub-IR boxes have arrows flowing upwards into the IR 3 box. IR 3.1 also has an arrow flowing into the IR 2.1 box.

IR 4 has two sub-IRs:

(1) IR 4.1: "New technologies available (4 years) World Bank"; and

(2) IR 4.2: "Farmers' exposure to on-farm experiences of peers increased (3 years)." These two sub-IR boxes have arrows flowing upwards into the IR 4 box.

Two final sub-IR boxes are shown: IR 1.1.1 and IR 1.1.1.1.

IR 1.1.1 ("Farmers' capacity to make enterprise management decisions increased (3 years)") has one arrow flowing upwards into the IR 1.1 box and one arrow flowing upwards into the IR 3.1 box.

IR 1.1.1.1 ("Adult literacy increased (2 years) GTZ and host government") has one arrow flowing into the IR 1.1.1 box and one arrows flowing upwards into the IR 4.2 box.

The flowchart explains that partner(s) are solely materially responsible for IR 3.2, IR 4.1, and IR 1.1.1.1. USAID plus partners are materially responsible for IR 2.2. USAID is solely materially responsible for all the remaining boxes.

Finally, several critical assumptions are listed:

(1) market prices for farmers' products remain stable or increase;

(2) prices of agricultural inputs (e.g., fertilizer, seeds) remain stable or decrease;

(3) roads needed to get produce to market are maintained; and

(4) rainfall and other critical weather conditions remain stable.