28 January - 4 February 1995
The ICLARM Board of Trustees wishes to thank Professor E. T. York and the members of the Mid Term Review Panel for the thorough and professional job they have done reviewing ICLARM's program and management. The Board also wishes to thank ICLARM staff for the efforts they put into preparation of papers for the Review Panel and in participating actively in the deliberations of the Panel.
The Executive Committee of the Board met with the Panel on 4/5 February 1995 in Manila to receive the draft report of the Review, discuss its findings and to draft a Board response to the Review for presentation to the Technical Advisory Committee (TAC) of the CGIAR at its 66th meeting in Lima, Peru in March 1995.
The Board is pleased to note the overall positive outcome of the Review and the external assessment of the Center's progress in improving its scientific programs and management capabilities. The Board appreciates the recommendations and suggestions of the Review and responds as follows:
Recommendations
1. That the Director General give urgent attention to the issue of cash flow management.
The Board is aware of the serious problems ICLARM faces in ensuring adequate operating reserves when a majority of its incoming funds are not remitted in advance of their expenditure. The present time is particularly severe as ICLARM has several projects terminating but no large projects with up-front payments starting. In addition, some 1994 unrestricted core funds have not been received. An attempt to establish a modest reserve in 1994 was unsuccessful due to inflation, the strengthening of the Philippine peso against other currencies, and variations in income and expenditure caused by uncertainties of donor contributions until part way through the year and overruns on some items.
Short term and longer term actions are now being taken as instructed by the Board. The short term actions are:
· budget a reserve of US$200k in 1995· budget an additional contingency fund of US$100k which may be released for specific purposes at the discretion of the Director General as the year progresses and if it is not required for budget adjustments for inflation, currency revaluation, etc.
· Management Services Division to institute much more rigorous reminder policies for donors who miss payment deadlines
· Director General to strictly monitor cash flow and emerging problems thereof with regular reports from the Management Services Division
· re-align the 1995 budget during the year if external factors make this necessary
· all program, project and unit managers to strictly manage all activities within approved budgets
· the proposed extra $1 million in ICLARM's 1995 budget should not be used to absorb budget overruns
Longer term actions will include:
· ICLARM to make every effort to secure better payment conditions in contracts with donors, including the maximum up-front payments and early payments of unrestricted core funds· ICLARM continue to increase its operating capital by $600k over the next 3 years as instructed by the Board in 1994 (in order to bring working capital to a level of at least 45 days).
· Restructure operations to fit the given budget, noting that the CGIAR funding envelopes are not allowing any level of inflation, resulting in less actual funding each year
2. That the team participating in the next full-scale external review investigate more fully progress in implementing and gaining acceptance of an orderly administrative system.
The Board including the Director General is already strongly committed to continuing a schedule of major improvements in ICLARM's management system. It is aware that these improvements will only fully succeed if all managers and staff 'sign-on'. The Board recognizes the magnitude of the tasks ahead for ICLARM. In the transition from a relatively informal Center with several rather separate operations showing little coherence, a certain degree of staff resistance to change occurred. Progress is being made but the Board recognizes that more time and effort is required.
The Board gives very high priority to ICLARM's corporate systems development over the next several years as shown by the majority of items in the annual Board action plans. The Board has now requested the management of ICLARM to develop a detailed internal action schedule to assist the further implementation of its administrative system. The Board will oversee this development and looks forward to the next external review to judge implementation progress at that time. It will also continue monitoring progress itself through internally commissioned external reviews of key functions.
3. That, in considering the Egyptian facilities, due consideration be given not only to administrative, financial and logistical aspects but also to the technical issues surrounding the feasibility of the proposed sites for ICLARM's research activities, against the framework of ICLARM's strategic plan and the implications for ICLARM's priorities.
In further considering the proposal for use of the Egyptian facilities, the Board is determined to maintain its stand based on the principle that all operations and costs (initial and ongoing) must be additional to ICLARM's present operations. Detailed planning of the financial, legal and logistical aspects has commenced.
While preserving the integrity and priorities identified in the present ICLARM Strategic Plan, the Board recognizes that the Medium Term Plan for 1994-1998 will need to be changed to take advantage of the new opportunities. The Program Committee of the Board, in consultation with ICLARM staff and external experts will recommend appropriate changes to the Medium Term Plan to take advantage of the opportunities provided by the new facility especially in how they enable more comprehensive research efforts in ICLARM's present priority in aquatic systems (coastal systems, coral reefs and inland ponds and rice floodwater). The Board, at its April meeting, will fully consider the impact of the new facility on ICLARM's strategy and program and report to TAC on its conclusions. TAC's approval will then be sought for a revised plan.
4. That ICLARM's Board and management continue to investigate the opportunities for a headquarters site and capital facilities in the Philippines.
The Board agrees with this recommendation and is pursuing action through a working group of the Board set up at the November 1994 meeting. The group is due to make its initial report to the Board in April 1995. The Board believes that ICLARM must have an appropriate headquarters site as soon as possible in parallel with and to give substance to the expected granting of a Philippine headquarters agreement. Headquarters facilities and a legal headquarters agreement are essential to assure long-term stability and the status of ICLARM in the Philippines.
5. That the Director General give urgent attention to the further strengthening of scientific and management capacity within ICLARM programs to ensure a sustainable long term effort by the Center.
In this recommendation, the Board sees a concern by the Panel for the lack of middle to senior ranking scientists and administrators with management skills adequate for the longer term future of the Center's work program.
The Board recognizes the urgency of strengthening ICLARM's human resource capital, especially that of those who are or may eventually be the Center's leaders. Short and unstable funds have exacerbated the present situation. If the extra $1million is obtained, the Board intends that these funds be primarily used to strengthen scientific and management capacity in ICLARM. The Board has previously identified priority uses of the funds and will revisit these in the light of the Report of the present Review. To strengthen scientific capability, a senior social scientist and a geneticist will be recruited. The Board also recognizes the need for greater strength in the finance and human resource management areas and these needs should be met from existing resources.
Management capabilities will be given high priority in recruiting all new middle and senior scientific and administrative staff. In line with clear Center priorities, existing staff will be developed and trained further in management, including research management so as to strengthen ICLARM's overall management capacity.
The Board intends to strengthen its own capacity in the finance, administration and human resource management areas.
Elsewhere in the report, the Board notes the statements made by the MTR Panel concerning the departure of senior staff and concerning the three program directors.
The Board would like to record that all senior staff probably referred to by the Panel have gone on to take up senior prestigious positions in other organizations. The Board recognizes that whereas staff turnover is healthy for any organization, including ICLARM, the departed and departing staff represent a potential loss of important expertise and, to overcome this, ICLARM has made and is making special efforts to keep and establish ongoing professional linkages with each of them.
With regard to the three program directors, the Board notes the MTR Panel's assessments based on their impressions gained during the review visit. The Board wishes to record its recognition of the strong contributions and accomplishments of the three directors. The Board also recognizes the difficulty of building a cohesive top management team at the best of times. This task is exacerbated when an organization is not only recovering from a past crisis but also is in the process of making large and rapid changes such as the Board and DG are at present. The Board will continue to encourage collaboration among its top management team so that full advantage can be taken of the Center's future opportunities.
6. That ICLARM should make every possible attempt to turn the challenge of increased competition for funds from capable NARS and the more internationally assertive Advanced Scientific Institutes into opportunities for positive strategic alliances.
The Board agrees with this recommendation. It has fostered a noticeable change in attitudes among ICLARM staff, including a shift from client/stakeholder type relationships and terminology to partnership arrangements where complementarity of skills and interests is the key.
In the last year, ICLARM has pursued a systematic process of formalizing relationships with national partners through memoranda of understanding, formalization of collaborative research networks (e.g., INGA), and moving away from an ad hoc approach with some key partners. The appointment of an international relations officer is also considered essential to providing more capacity for following up on links with regional and national agencies and undertaking even more systematic consultation and collaboration with NARS. The Board plans that ICLARM will undertake more formal and specific NARS consultations in 1995 to jointly specify priorities for collaborative research.
Due to its unique position, ICLARM has been the target of many approaches from ASIs for collaborative efforts. So far, the Center has not done a scan of its strategic needs for ASI links but the Board will encourage this step.
7. That ICLARM be allocated the additional US$1 million which TAC conditionally recommended based on the outcome of the Mid-Term Review.
The Board notes and appreciates this recommendation made to TAC and the CGIAR. The Board reiterates its stand that these funds are essential for the assurance of a stronger program within the approved Medium Term Program of ICLARM and would not be available to help establish and operate the Egyptian facilities if these are taken over by ICLARM.
8. That consideration of the issue of inadequate resources be given high priority by TAC and the development assistance community.
The Board appreciates this recommendation and stands ready to assist the TAC in any way possible in its re-examination of priorities for living aquatic resource research in the CGIAR system.
Suggestions
Section 2.2.1 Review of the Coastal and Coral Reef Resource Systems Program (CCRRSP)
p 4
Overall, the reviews stressed the need for much more in-depth economic analysis, which in the case of new aquaculture species should be integrated in the research procedures at an early stage, the need for an improvement in the research management system of the program was also stressed, particularly with respect to impact assessment. The Panel supports these views.
The Board notes that the panel endorsed the CCRRSP review's call for more in-depth socioeconomic analysis, especially integrated into early stage developments for new aquaculture species, and for more attention to research impact assessments.
The Board agrees with these important needs and has set a high priority on hiring a senior social scientist with new funds. ICLARM, at the Board's instigation, is developing plans for undertaking impact assessments on several key research case studies over the next two years. In the meantime, a preliminary assessment of impacts was given to the Review Panel and is reproduced in Annex A-6 of this report.
Section 2.2.2 Review of the Genetically Improved Farmed Tilapia (GIFT)
p 5
The Panel considers that this is important research, which could contribute extensively to increased fish production and improvement in the livelihood of poor people. The cooperation with NARS as well as the technical support for INGA was well acknowledged by the reviewers, and the Panel agrees with that as well as the statement that additional manpower for strategic research is needed.
The Board agrees with the importance of the GIFT-type research and has given high priority to the hiring of a geneticist with any new funds. INGA is also given high priority by the Board but despite the outstanding early success of the Network and strong efforts by ICLARM, donor support has not yet been won to continue this activity on a stable basis. ICLARM is continuing to explore possible funding options.
Section 2.2.3 Review of the Inland Aquatic Resource Systems Program (IARSP)
p 6
The Panel shares the concerns of ICLARM's Management regarding the validity of some of the claims of the review team, which conducted their work in a highly charged atmosphere. It endorses the actions taken by Management in response to this review and considers that the program is now balanced, credible and very promising. The inadequacy of social science input because of lack of funding remains, however, and issue requiring careful attention.
At its November 1994 meeting, the Board endorsed management's response to the Integrated Resource Management Thrust and agrees with the Review Panel that this work is well on track and looking very promising. The Board agrees with the need for more social science input.
Section 2.2.4 Review of the Information Division
p 6
The Panel would encourage ICLARM to consider carefully the review's findings with respect to the need for the development of a strategy for the Division.
Since the review of the Information Division was only conducted in December 1994, management and the Board have not yet had a chance to consider the review report. The April meeting of the Board will consider the report.
Section 3.3 1992 Recommendation 3 - Adopt an integrated system for project and program planning, monitoring and review across all programs
p 9
The Panel supports all these measures initiated by the Center and urges an evaluation annually of their success, with particular emphasis on their benefits to staff in outreach posts.
ICLARM presently is establishing a comprehensive system for planning, management, monitoring and impact assessment of its work program.
The Board intends to evaluate the full ICLARM system in about one year's time. The Board evaluation will pay particular attention to how the system works for outreach posts, recognizing the importance of full integration of ICLARM's headquarters and outreach work. The Board will then continue to monitor the situation.
Section 3.10 1992 Recommendation 10 - Spell out its strategies and plans in the information area clearly, and not expand its staffing and expenditures in this area before completing such an effort.
p 13
The Panel notes that the internally commissioned external review of ICLARM Information Program (sic) was completed shortly before this review took place. That review recommended that the program develop a vision and strategy as to ICLARM's future in this area... The Panel supports such a recommendation.
The Board notes the Panel's support for developing a vision and strategy for the information area and reiterates that it has yet to consider the report of the Information Division review (see response to Section 2.2.4 above).
Section 6.8 Partners
p 24
The Panel encourages ICLARM to proceed with participation in inter-center program activities of broader System importance, such as the system-wide program on coastal resources, on policy research with respect to common property resources and on water management. While the Panel recognizes that, due to limitation in staff resources, progress in developing proposals to this effect may be slow, it hopes that with expanding resources ICLARM will be able to give increasing attention to these other important areas of work. The Panel is pleased to note, therefore, ICLARM's active participation in the system-wide program on genetic resources.
The Board notes and agrees with the Panel's encouragement to ICLARM to participate in relevant CGIAR system-wide initiatives. ICLARM plans to take the lead in developing an initiative on coastal resources during 1995.
ICLARM reaffirms its commitment to the CGIAR system and hopes to both benefit from its participation in the system and contribute its special skills and knowledge to several programs in the CGIAR research agenda.
Section 6.7 Track Record and Past History
p 23
The Board appreciates the views of the Panel on the concept of renaming and visibly renewing ICLARM's image and modus operandi. It has yet to consider the options but intends to do so.
