WIXLIB

ABBREVIATIONSADB–Asian Development BankCOBP–country operations business planCSO–civil society organizationDLI–disbursement-linked indicatorDMC–developing member countryDMF–design and monitoring frameworkkm–kilometerM&E–monitoring and evaluationMFF–multitranche financing facilityNA–not applicableOP–operational priorityPAM–project administration manualPAP–program action planPBL–policy-based lendingPCR–project completion reportPDMF–policy design and monitoring frameworkPPP–public–private partnershipPPR–project progress reportPRF–program results frameworkRAMP–risk assessment and risk management planRBL–results-based lendingRRP–report and recommendation of the PresidentSMART–specific, measurable, achievable, relevant, time-boundTA–technical assistanceToC–theory of changeTVET–technical and vocational education and trainingvii

The Design and Monitoring Framework:A Tool for Managing for Development ResultsThese guidelines describe how the design andmonitoring framework (DMF) should be developedand used throughout the project cycle for sovereignoperations and technical assistance (TA). The DMFis the main tool the Asian Development Bank (ADB)uses for managing for development results at theproject1 and program levels and a core element ofADB’s project performance management system.Managing for development results is a managementapproach that supports better performance andgreater accountability by applying a clear, logicalframework to plan, measure, and manage a projectwith a focus on the intended development results.It is a process of continuously learning and takingevidence-based decisions to improve performance.By clearly identifying the intended results of a projectin advance, regularly collecting information to assessprogress toward them, and taking timely correctiveaction, the project team is better able to maximizeachievement of sustainable development results forADB’s developing member countries (DMCs).Formulating a quality DMF is an essential first stepin the project management cycle. In this process, aproject mission leader and team must understand thestakeholders and their problems and develop possiblesolutions into a manageable initiative. The basic stepsin the project management cycle are as follows:(i)(ii)(iii)1The DMFI.Identify results (outputs and outcome) and thecausal relationships between them.Identify alignment with the broader thematic-,sector-, or country-level results (impact).Identify the external factors that could influencesuccess or cause failure (risks and criticalassumptions).(iv)Select indicators to measure performance,identify baselines, and decide on targets tobe achieved.(v) Implement activities to deliver outputs.(vi) Measure and analyze data, and use themto assess project performance (monitoringand evaluation).(vii) Report on results achievement and make projectmanagement decisions based on evidence ofperformance.(viii) Learn about successes and failures and integratethe lessons back into the project cycle.The DMF milestones are shown in Figure 1.Preparing the design and monitoring framework.As the basic source of information about plannedperformance, the DMF plays a central role in ADB’sproject management cycle. All DMFs should beformulated through a participatory process (SectionIII) and reflect an approach and format suitable to themodality or product type (Section IV). A preliminaryDMF is attached to the concept paper for all projectsincluding knowledge and support TA. Although thelevel of detail it contains will vary depending on howfar project planning has progressed, the preliminaryDMF includes at least an indicative impact statementand results chain, and general ideas for performanceindicators. The target and baseline values for theseindicators may not yet be determined. The DMF isfully developed and confirmed during the fact-findingstage and the finalized DMF is attached to reportsand recommendations of the President (RRPs). DMFsfor all projects are entered into ADB’s web-basedportfolio management system, “e-Operations,” oncethe project has been prepared and before it is approvedby the ADB Board of Directors.The term project is used throughout these guidelines as a general reference to all types of ADB operations.1

Guidelines for Preparing and Using a Design and Monitoring FrameworkFigure 1: Design and Monitoring Framework MilestonesDMF MILESTONESPROJECT CYCLEPHASEDOCUMENTSANDACTIVITIESPreliminary DMFdrafted and refinedADB- andDMC-agreed DMFcompletedIdentification,Design andPreparationApproval Concept paper Reconnaissanceand fact-findingmissions RRP and TA report ProjectadministrationmanualDMF monitored,reported on, andrevised if neededImplementationand Monitoring Inception and reviewmissions Project performancereport Midterm review Change requestsFinal DMFreported on and usedto inform evaluationCompletion Completion reportPost-completionEvaluation Validation ofcompletion report Project and otherspecial independentand self-evaluationsADB Asian Development Bank, DMC developing member country, DMF design and monitoring framework, RRP report and recommendationof the President, TA technical assistance.Using the design and monitoring framework duringproject implementation. Facilitated by the project’smonitoring and evaluation arrangements (SectionV.A), progress on DMF performance indicators istracked and reported on regularly in e-Operationsas part of project performance reporting. The DMFis updated throughout the project cycle to reflectall pertinent changes to the project following theprocedures in the project administration instructions.If the project scope changes, the degree to whichthe DMF must be changed determines the approval2authority required (Section V.B). If the DMF isupdated, the e-Operations DMF records must reflectthe changes.Using the design and monitoring framework afterproject completion. The DMF forms the basis ofthe completion report for all operations and TAprojects that require a DMF in their approval report,and project success is evaluated and rated againstthe DMF results chain and performance indicators(Section V.C).

II.Design and MonitoringFramework Structure(i)(ii)(iii)(iv)the results chain, including the inputs, or mainresources; the activities or groups of tasks;the outputs delivered by the project; and theoutcome it will achieve;performance indicators for measuring resultsachievement, targets to be achieved, and abaseline of current performance;data sources and reporting mechanisms for eachindicator; andthe risks that act against results achievement,and critical assumptions that underly the resultschain.A.The primary purpose of a project is to achieve resultsthat meet people’s and/or organizations’ needs.A results chain consists of a series of expectedachievements, or positive changes, linked by causality.The results chain is a continuum from inputs toactivities to outputs, and to outcomes. Outputs aredefined as goods, services, or products delivered bythe project, while outcomes are the immediate anddirect benefits of the use or application of the outputs.The following are important pointers for developing aresults chain.(i)(ii)Figure 2: Design and MonitoringFramework StructureImpacts the Project Is Aligned WithResults ChainPerformanceIndicatorsData Sourcesand ReportingMechanismsRisks andCriticalAssumptionsOutcomeOutputsKey Activities with MilestonesInputsResults Chain(iii)The alignment points for a project’s resultschain are impact statements, which are typicallyhigher-level country, sector, or thematic resultsto which the project contributes. The impactstatement aligns the project’s outcome with ahigher-level development result.The basic definitions and impact alignment areillustrated in Figure 3 using the example of anurban rail transit system project. The projectdelivers the following outputs: signaling, traincontrol, and telecommunications systemsoperational; rolling stock operational; andinstitutional capacity of metro operationsorganizations strengthened. The immediateand direct benefit for residents of City A,the ultimate intended beneficiary group, isaffordable, safe, and inclusive mobility of urbanrail-based transit users in City A enhanced—the outcome. This outcome is aligned with thehigher-level impact of improved connectivityfor all to social and economic opportunities inCity A.The importance of the results increases movingup the results chain: efficient, safe, and inclusivetransit is more important than an operationalmetro system, which is just a means to that end;and connectivity for all to social and economic3DMF StructureThe DMF captures critical information about theproject in four columns (Figure 2). The top row ofthe DMF may contain a maximum of three impactstatements with which the project is aligned. Forsovereign projects, these statements are typicallyderived from a regional, country, or sector strategy.The four columns contain

Guidelines for Preparing and Using a Design and Monitoring Frameworkopportunities is more important still. However,project control and accountability decreasemoving up the results chain. The project controlstrain system construction and capacity building,but it only influences the efficiency, safety, andinclusiveness of the rail-based urban transitsystem. The project is accountable for outputdelivery and outcome achievement, but not forimpact-level results. Attribution also decreasesfrom output to outcome to impact. The outputsand outcome are attributable to the project.The impact statement of connectivity for all tosocial and economic opportunities in City A isoutside the project results chain and, althoughthe project contributes to it to some degree, isnot controlled by or attributed to the project.Table 1 illustrates the differences between the resultslevels. It contains several concepts, including targetsrisks and assumptions for partner financing, which arediscussed in subsequent sections of these guidelines.Outputs. Outputs are the products and services thatthe project delivers to the beneficiaries. Outputsare usually tangible and are generated by using andtransforming inputs through project activities. Themanagement scope of the project is defined by theoutputs, as by definition, project management cannotextend beyond outputs. There is a close relationshipbetween inputs and outputs; therefore the DMFcannot list outputs for which there are no inputs(Box 1). Before project approval, project teams assigna percentage weight for each DMF output indicator—based on its criticality to achieving and/or contributionto the project’s outcome, cost, or other priorities—and input these into e-Operations. The percentageweights form part of ADB’s project performance ratingmethodology used during project implementation.2Figure 3: Example Results ChainBroaderDevelopmentResultsLonger-term or broader development benefitsthe outcome is aligned withImpactResultsChainOutcomeImportanceof ResultsConnectivity for all to social and economic opportunitiesin City A improvedIndicatorsAssumptionsReportingImmediateand direct benefitof useor application of outputsAffordable, safe, and inclusive mobility of urban rail-basedtransit users in City A enhancedDirectProject ResultsProduced or delivered by the projectKey Activities with MilestonesOutputs241. Signaling, train control, and telecommunicationsystemsoperationalInputs2. Rolling stock operational3. Institutional capacity of metro operations organizationsstrengthenedProject Controland AccountabilityADB. 2020. Project Performance Monitoring. Project Administration Instructions. PAI 5.08. Manila. n-instructions.

Design and Monitoring Framework StructureTable 1: Differences between Results LevelsAlignedwith projectoutcomeUsually postHigher-leveldocuments, e.g., projectnational, sector,subnational, orregional plansor strategiesOutsidebeneficiarycontrolNo direct projectaccountabilityShould not change,although additionalimpact statementscan be added toreflect alignmentwith a newstrategy or planintroduced afterproject approvalOutcome(part ofthe DMFresultschain)Directlyinfluencedby projectNeeds ofbeneficiariesTarget levelachieved by endof first full yearof operationfollowing physicalcompletion, orbefore financialclosure of projectWithin thecontrol ofbeneficiariesProjectaccountablefor outcomeachievementMajor change inscope if there is amaterial changein the outcomeBy physicalcompletionWithin controlof project, giveninputs, risks,and tyDMF StructureImpact(not partof resultschain)Producedor deliveredby projectTiming ofAchievementsChangesduring ProjectImplementationRelationshipto ProjectOutput(part ofthe DMFresultschain)Source ofResultControl byProject orBeneficiariesResultsLevelProject success(effectiveness)measured againstoutcome targetsProjectaccountablefor outputsMinor change inscope if no effecton the outcomeDMF design and monitoring framework.Box 1: Output Tips(i) Include major products and deliverables of the project.(ii) Ensure that together, outputs will be sufficient to achieve the outcome, given the risks and assumptions.(iii) Include an output for each set of activities, except project management activities, which do not producean output.(iv) Phrase outputs in the past tense as already achieved, e.g., “rural roads constructed in the southern districts.”Include a word signifying completion (e.g., constructed, rehabilitated, established, implemented, improved) inthe statement.(v) Outputs must be fully consistent with the cost estimates and financing plan, and the project definition inschedule 1 to the loan or grant agreement.5

Guidelines for Preparing and Using a Design and Monitoring FrameworkOutcomes. Outcomes represent the purpose ofthe project and should describe the immediate anddirect benefits of output use or application. Outcomestatements should articulate the change the project isexpected to achieve (Box 2). The DMF contains onlya single outcome statement, although the statementmay contain several different dimensions ofperformance, such as “Improved water security andmobility in City A.” Performance indicators are thenused to measure specific dimensions of the projectoutcome (Section II.B). For example, if women’smobility is an important part of the outcome, thisdimension would be measured through a specificperformance indicator.Box 2: Outcome Tips(i) Include only one outcome statementdescribing the immediate and direct benefitsfrom using or applying outputs.(ii) Phrase the outcome in the past tense asalready achieved, e.g., “increased mobility ofrural residents.” The statement must includeat least one change word (e.g., increased,improved, enhanced).(iii) Do not include any cause-and-effect links.Outcome statements should not use the words“through,” “by,” or “in order to,” becausethese words imply cause-and-effect links;e.g., corporate performance improved throughcapacity building, graduation rates increasedby reducing dropouts, crop yields improved inorder to increase farmer income.346Assessment of the project’s effectiveness is basedon whether the project’s intended outcome hasbeen achieved and is attributable to the achievedproject outputs. For sovereign operations, theproject completion report (PCR) is prepared within12 months of financial closing. To ensure thatoutcome performance data will be available in timefor completion reporting, the DMF articulates theplanned level of outcome indicator target achievementin the first full year of operation following physicalcompletion.3 For projects with nonphysical outputs,the outcome indicator target dates should be set toensure that achievement can be assessed in the PCR.Impacts. The project’s results chain is aligned withimpact statements, which are sourced from the mostrelevant strategic document(s), usually a governmentnational, sector, subnational, or regional plan or strategy,before the project is conceptualized. The impact levelin the DMF is separated from the results chain toshow that its purpose is alignment, not performancemeasurement. The DMF does not include performanceindicators or targets to measure impact statements.4Impacts are long-term in nature and are expected tooccur sometime after project closing. The timing ofexpected impacts varies. For example, a project thattakes 6 years to build new transmission lines wouldmake some contribution to the growth of businessesthat use electricity only after several years of operation.Impact statements are restated from the sourcedocument to conform to DMF results statementphrasing. Phrase the impact as achieved, for example,“income, jobs, and business activity increased” andinclude a change word in the sentence. Do not includemore than one level of cause-and-effect links in anA sovereign project is deemed complete when all of its outputs are completed (i.e., when its facilities are completed and ready to operate regardless ofthe closure of its financial account). Project Administration Instruction 6.07A provides instructions on the timing of PCR preparation and circulation(ADB. 2019. Project Completion Report for Sovereign Operations. Project Administration Instructions. PAI 6.07A. Manila). on-instructions.Although impact-level indicators are not included in the DMF, rigorous impact evaluation can still be carried out using the impact statement(s) andresults chain from the DMF. See ADB. 2017. Impact Evaluation of Development Interventions: A Practical Guide. Manila. ns-guide.pdf.

Design and Monitoring Framework StructureTable 2 contains output, outcome, and impactstatements for operations in common ADB areas ofsov

for all projects are entered into ADB's web-based portfolio management system, "e-Operations," once the project has been prepared and before it is approved by the ADB Board of Directors. 1 The term project is used throughout these guidelines as a general reference to all types of ADB operations.