21 Nov 2004
  1. Assessing the Executive Director and board

The board agreed on a procedure for conducting an annual assessment of how well the Executive Director (Richard Feachem) performs his job. The procedure will measure his skills against seven "competencies," and will measure his actual performance against fourteen "Key Process Indicators" (KPIs). The competencies will be strategic thinking, results focus, team leadership, change leadership, people development, collaboration/communication, and functional/technical competence. And the KPIs will range from the percentage of the Fund's 2005 funding needs that end up being contributed that year (for which the target is 100%) to the percentage of Global Fund staff who say in a survey that they have a "high" or "very high" degree of professional satisfaction and motivation (for which the target is 70%). The agreed approach is designed to be one that can be extended to assessing the work of others within the Secretariat.

A number of board members commented that this approach, which is common in large corporations, is unusual in governmental or multilateral institutions, and it was clear that they hoped that the Fund's use of this approach might inspire others.

The board recognized that performance against some of the KPIs (e.g. funds raised) will depend not just upon the effectiveness of the Executive Director and his staff, but also upon the effectiveness of the board itself. Accordingly, the board agreed that it will conduct an annual self-evaluation of its own performance against five targets.

  1. Secretariat Budget 2005

A year and more ago, some board members were quite resistant to requests being made by the Secretariat to substantially increase the Secretariat budget (primarily through increasing the number of staff from the then level of about 75) as the number of grants under management steadily climbed. However, in recent months an agreed approach has been arrived at. The Secretariat has reduced some of its expectations, and the donor governments represented on the board have accepted that the Fund cannot do its job effectively if there is not a fairly significant increase in the number of staff, particularly those who oversee grants.

Thus, by the time of the board meeting there was little difficulty agreeing on the Secretariat budget for 2005. The budget will be $67.1 million (after including the administrative costs of launching Round 5), of which two thirds is for the Secretariat itself and one third is for Local Fund Agents. By the end of 2005 the number of staff will be 150, all based in Geneva. Between 2004 and 2005, the budget will increase 15%, the number of staff positions will increase 27%, and the number of grants under management will increase 82%. The 2005 Secretariat budget will equal 2.3% of the value of grant agreements signed that year, and will equal 5.0% of the value of grant disbursements sent out that year.

At the same time that the board approved the Secretariat budget, it resolved that during 2005 the Fund will commit no more than $1,310 m. for Phase 2 renewals of Round 1-4 grants. That figure was derived based on the assumption that 15% of Phase 1 grants will not be renewed. Thus, the Fund will not be in a position to be "nice" to countries seeking Phase 2 renewal for grants that have performed very poorly during Phase 1; the $1,310 m. represents a cap on what the Fund is prepared to commit for renewals that year.

  1. Calendar

The following dates were agreed for events during 2005: First Replenishment Conference (Stockholm), March 14-16; Call for Round 5, March 17; Board meeting (Geneva), April 21-22; Last date for submitting Round 5 proposals, June 10; Second Replenishment Conference (UK), September 5-7; Board meeting (Geneva), September 28-30; Board meeting (Marrakech), two days in the week of December 12-16.

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