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Book Part B: The Strategy Dynamics Approach

Chapter 7 of 14

Using the SD Model as a Living Business Model to Manage the Project

Ken Lyons · 18 pages

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Summary

Draft for Ken's approval

However good a design is, it rests on incomplete information. Adjustments will be needed during and after implementation. Monitoring and evaluation (M&E) tracks progress against targets. The international development agency and the in-country agency may differ in their needs, views and capability for M&E. Land Registries also often collect little systematic performance data.

The Strategy Dynamics model from the design stage, stripped down, becomes a living business model. Each month, actual results are compared with model targets for key indicators such as the backlog and individual productivity. Traffic lights show which are on track.

In the backlog example, things are largely on track at month 5 and on track at month 10. At month 22, 12 months after aid ends, two key indicators show red. Management finds staff are not fully following the new procedures. It runs follow up training and lowers the productivity target from 2.8 to 2.6 applications per person per day. The model then calculates revised targets.

Key points

  1. M&E measures progress by comparing actual results with targets, and allows plans and targets to be changed if needed.
  2. An aid agency focused on the project period and an in-country agency focused on the years after may differ in M&E needs and capability.
  3. The model used in design can serve as a living business model for M&E, with traffic lights helping managers see what needs attention.
  4. The living business model sets revised targets that are logical and transparent, but it is no use unless managers take the actions.
  5. Continued periodic M&E support from the aid agency, using the model to discuss progress and revise targets, would be quite valuable.