Results-Based Monitoring and Evaluation System : A Successful Pilot Initiative of IFC-SEDF Captures Impact

International Finance Corporation (IFC) - South Asia Enterprise Development Facility's (SEDF's) Monitoring and Evaluation (M&E) team developed a results-based performance measurement system in order to assess the effectiveness of Value Addition to Firms (VA2F) interventions. The system is based on a planning matrix derived from causal chains to make intended impacts within the framework of IFC development objectives and strategies. The author began testing this M&E system on the VA2F interventions in three sectors: Readymade Garments (RMG), Light Engineering (LES), and Agribusiness. M&E does not just provide additionality to other departments. M&E does much more. Systems like this can help M&E take a leading role in program design to reflect the increasing demand for proof of impact from both IFC and donors. This smart lesson details the challenges faced by this resource-intensive effort, and recognizes the investment that should be made in M&E as an indispensable component in justifying IFC advisory services.