Second Joint Donor review of the Global Green Growth Institute, September 2013

Main conclusions and recommendations12 September 2013

1. Conclusions

1) GGGI is in double transition: (1) between operating as K-GGGI to now operating as anInternational Organization (IO) and (2) from the period of the former top management tothe new top management team taking charge since April/May 2013. The GGGI’s currentmanagement team is responding to the urgent need of building and professionalizing allaspects of the organization, operation and management of GGGI, and establishing a distinctGGGI identity based on a clearly defined niche. This double transition isaffecting all parts ofGGGI’s daily operations and will likely continue to do so the nextyear.2) GGP&I activities in countries are moving ahead with some key early achievements. The twocountry cases suggest GGGI has been good at positioning itself as a trusted adviser togovernment on green growth. Each country portfolio consists of a limited number ofprojects identified in response to windows of opportunity but without the guidance of acountry strategy and an accountability framework. The three pillars of GGGI (GGP&I,research and PPC) have not been integrated in the country projects. Overall, less progresshas been made on the research and PPC pillars. There is no consistent understanding inGGGI of, or approach to, implementation across the three pillars.3) GGGI staff at country level are highly competent within each their areas of specialization anddedicated to the vision of green growth. They are currently composed of a mix of staff andconsultants with short tenures, which affects program progress as well as organizationaldevelopment. The staff have felt detached from headquarters and there has been a lack ofcommunication, strategic guidance, professional and administrative support. The initiativestaken by the new top management team to address these weaknesses are currently not feltat country level.4) The ongoing work of professionalizing the GGGI is all encompassing and is being carried out,under time pressure, with the aim of having most of the new administrative procedures inplace from the beginning of 2014, and a new overall strategy with supporting countrystrategies in place within a year. The reform process is highly needed and the effort totransform the organization within a short time period is commendable. But to change everyaspect of an organization, which is young and yet to define its niche, and which is beingstaffed at the same time with new people in key positions, is a huge task. The challengesremain in coordinating the reform tracks as they are mutually dependent, but also inensuring that the new systems and procedures are built on lessons learnt and bottom-upinput from all staff and are tailor-made to fit an organization of the size of GGGI and thenature of its projects. There is a risk of over shooting on the development of the neworganizational architecture, which may not be fit for purpose.

5) The GGGI is under severe financial stress. Some pledged donor contributions have not beenpaidon time as expected and the organization faces a serious cash flow problem. Part of thereason for the delay in donor payments is the GGGI’s delay in communicating its financialposition and program results. GGGI is in need of a sustainable financial model, which bringsmore predictability and stability into its operations. The model should specify the expectedform and level of contribution from different kinds of members, including from contributingand participating members and other sources. Donors providing core funding shouldharmonize their requirements of the GGGI. During the double transition, the Council and theSub-committees have been closely involved in establishment of the GGGI’s managementsystems and procedures. With the new top management taking charge and professionalizingthe organization, the need for this close level of interaction should diminish over the comingyear and the management space be increased.

2. Recommendations

1) The Council should assist the GGGI Secretariat in coming up with a solution to the unstablefinancial situation of GGGI. The solution should not only address the immediate challengesbut also support the establishmentof a long-term viable financing model.2) Throughout the coming year, the operations of GGGI are likely to be characterized bycontinued reform of the organization and procedures and by the development andoperationalization of the new strategy. During this period, the GGGI should limit itsexpansion into new countries and focus on consolidation and professionalization. The scaleand speed of expansion, including the staff profile, should be in line with the overall strategyand prioritization of effort and lessons learned. Consolidation at headquarters on keyfunctions on all three pillars is particularly important.3) In the future, the GGGI identity and strategy have to be owned and consistently interpretedin the same way by all staff, management and governing bodies no matter their physicallocation and daily tasks. For this to materialize, the upcoming strategy process should beforward-looking, realistic, inclusive and built on lessons learnt and the origins of GGGI, aswell as input from new staff and external stakeholders. The strategy should be sufficientlydetailed and well thought through to guide the scoping of GGGI projects - without becominga straightjacket. Internal communication and transparency will be key to its success. GGGIneeds to have a clear understanding and definition of its core and non-core activities.4) The core of GGGI’s work is support to green transformation globally and at country level.Green transformation is by nature long term and highly political. In addition to having strongsubject matter competences, all GGGI staff needs competences in change management,political economy, environmental management and development cooperation.5) GGGI’s country programs need to be more selective and realistic, particularly during theirimplementation phase. Country programs should have a clear strategic focus, drawing onparticipation at the local level through cooperation with stakeholders at the local andnational level. GGGI’s new strategy should promote transparency towards local partners,