Activity-Based vs. Results-Based Management

Results Based Management is a shift from a focus on inputs (how much budget was spent), activities (the work that was done) and outputs (what was produced), which includes the resources a project will use during the life of a project. It’s driven by a need to know if the project is making progress to achieve the expected objectives and maximize the achievement of development results. RBM puts emphasis on outcomes as the real changes that occur as an effect of the development intervention.

It is important to understand that the shift to RBM is driven by the limitations and deficiencies that occur when development organizations only focus on the implementation of activities and budget control. Donors, beneficiaries, and other key stakeholders need to know more than that, they need to know if the investment is actually creating the changes that are needed. Completing activities does not always mean that the results have been achieved. Delivering goods and services depend on critical assumptions that are not in full control of the project.

Here are the main differences between Activity-Based and Results-Based Management:

RBM, as a management strategy, differs from the old focus on inputs and activities where the project was measured on its ability to complete activities and not on whether these activities resulted in a benefit.? The focus on results means that every process, approach and strategy is defined and evaluated on the results achieved at every phase of the project cycle. The driver is no longer the achievement of activities and the use of all the inputs, that the project has more control, but on the outputs and outcomes. Monitoring the indicators on outputs and outcomes to help make a decision on how to adapt the project approach and strategies in the use of inputs and delivery of activities. From focus on inputs and activities to outputs, outcomes and impact; from completing activities to measuring change; from achieving budget and schedule milestones, to achieving results indicators and targets; from meeting just donor contract requirements to meeting beneficiary needs.

With RBM, the success of the project is no longer measured by delivering the scope on time and on budget, but by the results it has been able to achieve. Development projects have been more supply driven than demand driven. A focus on complying with rules and procedures and ensuring the donor funds are properly recorded for every project purchase.? The concern has been more on doing the things right rather than doing the right things.

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