## Statement by the Managing Director on the Management Implementation Plan for the IEO Report on the Fund’s Performance in the Run-Up to the Crisis Executive Board Meeting May 25, 2012

## Source details

**Canonical URL:** [Statement by the Managing Director on the Management Implementation Plan for the IEO Report on the Fund’s Performance in the Run-Up to the Crisis Executive Board Meeting May 25, 2012](https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/np/pp/eng/2012/_052512.pdf)

## Other formats

- [Markdown version](/-/media/websites/imf/imported-full-text-pdf/external/np/pp/eng/2012/_052512.pdf.md)
- [Structured JSON version](/-/media/websites/imf/imported-full-text-pdf/external/np/pp/eng/2012/_052512.pdf.json)

---

### Breaking down silos
- Objective: strengthen departmental collaboration and accountability around institutional priorities.
- Initiatives:
  - Accountability framework for each department head: annual output goals, budget, and personnel objectives agreed with management.
  - More consultative budget process: management assesses needs and compromises to foster collective ownership.
  - Increased mobility: management actively organizes mobility at the deputy director level across departments; new policies to encourage long-immobile staff to move across departments.
  - New process for key policy and cross-country papers: initial and interim meetings of management and departments to air diverse views early (examples: interconnectedness papers, the surveillance decision, the External Sector Report).
  - Increased use of cross-departmental teams for analysis (examples: upcoming Spillover Report and External Sector Report).
  - Physical workspace adaptations to promote collaboration (HQ1 renovation project emphasizing team spaces).
- Management view: these measures are progress but will not fully eliminate bureaucratic walls; regular monitoring is required.

### Encouraging diverse views and candor
- Objective: avoid groupthink and ensure staff can "speak up to power" internally and be candid with member authorities.
- Initiatives:
  - Access alternative perspectives outside the institution as proposed by the management implementation plan.
  - Staff diversity measures:
    - Initiative to hire senior managers from diverse backgrounds.
    - Mandate for gender parity in recruitment at the professional levels.
    - Efforts to build a strong pipeline of candidates from underrepresented regions for senior positions.
    - Improve processes for recruiting and integrating staff with outside experience.
  - Leadership and workplace values:
    - New statement of workplace values under development to guide behavioral changes, especially for senior staff.
    - Leadership development framework to clarify expectations at senior levels.
    - Efforts to ensure voices of more, and more junior, staff are heard at the top of the institution.
  - Staff conduct with members: staff expected to be candid with country authorities, tactful in public; errors will be corrected, and management will stand behind staff in all other cases.
  - Monitoring: staff surveys on two-year cycles to assess effectiveness and identify problem areas.

### Progress to date
- External consultants engaged to report on initiatives at department Director/Deputy Director level.
- Encouraging results:
  - Senior staff report a step increase in teamwork and coherence, notably in budgeting, multilateral surveillance, and policy development.
- Concerns:
  - Need more progress on collaboration for programs in crisis countries and flagship reports.
  - Some senior staff worry that limiting department head participation to key meetings may have reduced contrarian voices at the top.
- Conclusion: continued effort required to support collaboration and open debate.

### Monitoring and follow-up
- Proposal to return in one year to review issues summarized in Table 1, possibly in an informal setting (e.g., Board retreat) to address difficult issues, including the Board's role in supporting change.
- Management open to alternative suggestions from Executive Directors.

### Table 1: Institutional culture — an agenda for progress (selected Action/Goal and Timing/Status)
- #1 INTER-DEPARTMENTAL COLLABORATION: AVOIDING SILOS
  - Align departmental and corporate objectives
    - Q4 2011: Introduced new accountability framework and new department budget process
  - More consultative budget process
    - FY2013: Proposed budget embodies greater collective ownership
  - Increase interdepartmental mobility
    - Q4 2011: Overseen by management for senior/managerial staff
    - Q1 2013: New mobility guidelines for economists
  - Promote full airing of views early in process
    - Q4 2011: Interdepartmental meetings with management for policy papers at key milestones
  - Increase use of cross-departmental teams
    - Jan 2012: Started with Spillover and External Sector Reports; to be used more broadly
  - More team/collaborative spaces
    - Jan 2013: HQ1 re-modeling to build in this goal
  - Verify progress
    - Feb 2012: Consultants hired to analyze and discuss progress with department heads
- #2 ENCOURAGING DIVERSE VIEWS AND CANDOR
  - Avoiding groupthink
    - October 2011: TSR included external views; other policy reviews will also aim to do so
  - Increase diversity, professional and other
    - March 2012: Compensation, recruitment/retention (A series of Board briefings on strategic HR issues)
    - July 2012: Next review of progress on diversity
    - Q4 2012: Corporate workforce planning
  - Encourage staff to raise critical issues with management, Board, and country authorities
    - June 2012: The statement of workplace values to be finalized
    - Q4 2012: Report from Steering Committee on Leadership Development on the role and mandate of B5s and B4s
  - Verify progress
    - Q1 2013: Next staff survey will check progress

### Table 2: Summary of other actions in SM/12/31 (Management Implementation Plan) (selected Action/Goal and Timing/Status)
- #1 ENCOURAGING CANDOR AND DIVERSE VIEWS
  - Fuller discussion of risks and spillovers in Article IV’s and WEO
    - April 2012: WEO will provide fuller discussion
    - March 2012: New guidance for Article IV’s
  - Multilateral surveillance tools (Early Warning Exercise, Vulnerability Exercises etc.) used systematically in Article IV discussions
    - Oct 2011: Review process modified; regular verification of adherence
  - Explore scope for better reflecting minority/dissenting views in Board communications
    - March 2012: Board Working Group on Summing Ups established
  - Seek external views in policy discussions
    - October 2011: TSR included external views; other policy reviews will also aim to do so
- #3 INTEGRATING MACRO FINANCIAL
  - Strengthen coverage of financial sector issues
    - Sept 2012: Follow up with strategic plan for financial sector surveillance
  - Reallocate resources for financial sector issues
    - October 2011: A financial expert will join at least all systemically important Article IVs
- #5 CLEAR AND CONSISTENT MESSAGING ON OUTLOOK/RISKS
  - Ensure the IMF’s overall assessment of outlook and risks is consistent, comprehensive
    - Sept 2011: Initiate Consolidated Multilateral Surveillance Reports to distill key messages
  - Create a risk focus in all surveillance output
    - April 2012: Greater attention to risk in WEOs; all surveillance will have enhanced clarity on risks

*Source: Statement by the Managing Director on the Management Implementation Plan for the IEO Report on the Fund’s Performance in the Run-Up to the Crisis, Executive Board Meeting, May 25, 2012.*

---


_Source: https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/np/pp/eng/2012/_052512.pdf_