OUTCOME 7: ORGANIZATION

The MRC Transitioned to a More Efficient and Effective Organization in Line with the Decentralization Roadmap and Related Reform Plans

INDICATORS • The extent to which the MRC Secretariat’s organizational structure supports integrated water resources planning and implementation (IWRM Framework) • Percentage of MRC SP outputs completed as planned • Core function batches 1 and 2 fully decentralized • Percentage of MCs funding contributions • Extent of staff morale and satisfaction with the MRC management system and organizational direction • Percentage (10%) of reduction in operating costs achieved over period of the plan

HIGHLIGHTS The MRC made great strides during 2016–2020 in strengthening and transforming its Secretariat to a leaner and more transparent, accountable, and cost-effective organization – indeed, taking another leap towards world-class status as a direct result of reforms in human resources, administration, and finance systems. This began in 2016 when the MRC completed its restructuring, which involved: (i) consolidation of its multiple programme planning processes into one (i.e. the MRC SP); (ii) development of a new M&E Framework, which established a mutual accountability framework and streamlined the number of indicators; (iii) decentralization of CRBMFs); (iv) the establishment of a leaner structure of the MRC Secretariat with one Headquarters located in Vientiane and the RFDMC in Phnom Penh, after consolidating 13 Programmes into four Divisions and the Office of the CEO; (v) recruitment of 64 full-time staff (reduced from almost 200 in the previous period); and (vi) a shift to a more flexible and countries-driven pooled funding mechanism of a BF instead of separate donor-dependent programmes. For the first time in the MRC’s history, a riparian CEO took charge from 2016, with all staff of the Secretariat coming from the MCs. With the new structure, processes, and operations in place, the MRC subsequently embarked on and successfully completed the strengthening of its internal operations by first subjecting itself to several independent reviews including the EU Pillar Assessments in 2017 and 2019, the Operational Review in 2018, and the MTR, also in 2018, and addressing the resulting recommendations. The strengthened internal operations features an independent Audit Committee, an Internal Auditor, revised operations manuals (i.e. Administration, Finance, Procurement, Fixed Asset and Human Resources manuals and Fraud Prevention and Anti-Corruption Mechanism), and the development of guidelines to support the implementation of the manuals. The achievement of these milestones has culminated in the MRC Secretariat's passing of EU Pillar Re-Assessment in November 2019, which provides reasonable assurance that the MRC meets international standards with regard to internal control, accounting, external auditing, and procurement. This further boosted the confidence of the MCs and Development Partners in the MRC’s ability to perform its functions in the most transparent, accountable, and cost-effective manner. The strengthened operations have also provided the specificity and clarity that the MRC Secretariat’s staff members need to perform their tasks more deliberately according to approved rules and procedures, thereby improving the individual and collective efficiency and accountability of the workplace. The increasing confidence and trust of the MCs in the MRC are also demonstrated by the fact that their annual financial contributions, which increased to USD 15.7 M for the period, are now being remitted in a timely manner. This commitment is indubitably helping reduce uncertainty, improve the MRC Secretariat staff's morale, enhance the organization’s standing with Development Partners and the broader community, enable the organization to perform its functions according to plan, and keep its pledge that it will be a world-class, financially self-sustainable organization by 2030.

Structural reform and riparianization

The MRC Headquarters in Vientiane, and the MRC Regional Flood and Drought Management Centre in Phnom Penh.

The reforms focus on strengthening the ownership of the MCs and the riparianization of the MRC Secretariat. In 2016, MRC completed its restructuring, which involved: (i) consolidation of its multiple programme planning processes (multiple programme documents) into one (i.e. the MRC SP as one plan for the organization); (ii) the development of a new M&E Framework, which established the mutual accountability framework (between the MRC Secretariat and MCs) and streamlined the number of indicators (from almost 2,000 in the previous period to over 100); (iii) decentralization of core river basin management function activities mostly related to routine monitoring from the MRC Secretariat to the MCs (see Outcome 6); (iv) the establishment of a leaner structure of the MRC Secretariat with one headquarters located in Vientiane, and the MRC Regional Flood and Drought Management Centre in Phnom Penh, following the consolidation of 13 programmes into four Divisions and the Office of the CEO; (v) recruitment of 64 full-time staff (reduced from almost 200 in the previous period); and (vi) a shift to a more flexible and countries-driven, pooled funding mechanism of a basket fund instead of separate, donor-dependent programmes. The first riparian Chief Executive Officer, Dr Pham Tuan Phan of Viet Nam, took charge from 2016 to 2018, followed by the second riparian CEO, Dr An Pich Hatda of Cambodia, from 2019 to 2022. Also, from 2016, all staff of the MRC Secretariat came from MCs, openly and competitively recruited as international civil servants.

Improving linkages between the MRC Secretariat and MCs through Expert Groups

With respect to the desired output of improving the linkages of the MRC Secretariat with MCs, especially at the level of line and implementing agencies, while reforming the organization to support cross-cutting coordination of its IWRM work, in 2017, the MRC established four Expert Groups (EGs) (see Figure 46). These groups replaced the steering committees, technical working groups, and advisory bodies of the former MRC Programmes.

Figure 46. MRC Expert Groups (EGs) with their roles and responsibilities

Strengthening internal operations With the new structure in place, most staff recruited, funding secured, operating out of one Headquarters, and a new enhanced M&E system focusing on results and mutual accountability, the MRC’s objective moving forward was to further strengthen the organization towards improving efficiency, transparency, and accountability. In order to achieve this, the MRC underwent several independent reviews, including the EU Pillar Assessments in 2017 and 2019, the Operational Review in 2018, which was commissioned by Development Partners, and the MTR of the MRC SP 2016–2020, also in 2018. In 2019, the MRC Secretariat passed all aspects of financial management of the EU Pillar Assessment, including internal controls. An independent Audit Committee as part of the governance structure of the MRC to monitor compliance with applicable institutional policies, legal, ethical, and regulatory requirements and a full-time Internal Auditor are in place. The update of the Finance Manual (version November 2019) together with other operation manuals (Human Resources, Administration, Procurement, and Fraud Prevention and Anti-Corruption Guidelines) and the subsequent agreement of the Finance Manual by the Budget Committee and approval by the MRC Joint Committee.

MRC Member Countries meet at the Preparatory Meeting of the MRC Joint Committee for the 26th MRC Council Meeting (November 2019). The Joint Committee provides guidance to the organizational reform and implementation of the MRC SP, among others.

The Cambodian Delegation was led by H.E. MR Te Navuth,Permanent Vice Chairperson of the Cambodia National Mekong Committee (Left), and the Thai Delegation was led by Dr Somkiat Prajamwong, Secretary General of the Office of National Water Resources and Vice Chairperson of the Thai National Mekong Committee (Right). H.E. Mr Navuth was the Chairperson of the MRC Joint Committee for 2018, and Dr Somkiat for 2020.

Improving implementation of MRC SP 2016–2020 through Annual Work Planning and M&E To enhance M&E, the MRC used dashboards. The financial dashboard developed in 2016 has been used regularly in senior management meetings at the Secretariat to report financial performance and recommend management actions. The 2018 MTR has indeed recognized the value of dashboards for M&E. Since then, the MRC has embarked on expanding the application of the dashboards and other visualization tools to improve not only the MRC SP and organizational performance, but also the monitoring of selected conditions and trends in the Basin. The Lao river monitoring dashboard sends these flood and drought alerts to the Lao government officials (including Council and Joint Committee members) through mobile/social media applications LINE and WhatsApp (see Figure 47).

Participants pose for a group photo during a regional training session of Monitoring Dashboards conducted by MRC Secretariat’s in-house experts (December 2019).

Figure 47. Mobile application and web-based dashboards for monitoring the operations of 49 HPPs including the two cascade dams at Nam Ngum and Nam Ou

Evidence of change

Figure 48. Outcome Evaluation Matrix

Note: The Matrix assesses outcome achievement based on output completion and the type of change that occurred – Outcome 7

Efficient and effective organization The MRC’s achievement of several key milestones in strengthening its internal operations, including updating its manuals, have provided the specificity and clarity that MRC Secretariat’s staff members need to perform their tasks more deliberately according to approved rules, thereby improving the individual and collective efficiency of the workplace. The following are remarkable set-ups that the MRC succeeded in strengthening its financial management and control mechanism to promote its Secretariat as one of the most efficient and effective river basin organizations in the LMB. “Significant achievements of the MRC in recent years […] have increased the reputation and relevance of the organization considerably and consolidated its standing as one of the premier river basin commissions worldwide.” – Independent Operational Review, November 2018 The MRC’s strong commitment to becoming an even more transparent and accountable organization has increased the confidence of MCs and Development Partners. The MRC’s successful assessment of the EU Pillar Re-assessment is expected to attract – and make it easier for – the EU and other potential Development Partners to financially contribute to the MRC in the next MRC SP. In addition, the confidence of MCs is highly evident not only in their pronouncements and affirmations of support, notably expressed in the 2018 Siem Reap Declaration, but also by the fact that their annual contributions have continued to increase and being remitted in full and on time. This commitment is indubitably helping reduce uncertainty, improve the Secretariat’s staff morale, enhance the organization’s standing with Development Partners and the broader community, enable the organization to perform its functions according to plan, and keep its pledge that it will be a world-class, financially self-sustainable organization by 2030.

OUTCOME 6