Asian Development Bank (ADB) New Operating Model
Introduction
The Asian Development Bank (ADB) is a regional development bank that aims to achieve a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members, 49 of which are from the region.
In October 2022, ADB adopted a comprehensive reform road map, featuring a new operating model, to accelerate its transformation and more effectively serve the rapidly changing needs of its developing member countries (DMCs) in Asia and the Pacific. The new operating model will help ADB deliver on the ambitious development goals of its corporate strategy, Strategy 2030.
This article will outline the key differences between ADB’s old and new operating models, explain the rationale for change, and discuss the implications for the need for consulting services and how consultants will be selected.
Key Differences Between Old and New Operating Models
The old operating model of ADB was based on a functional structure, with five regional departments covering Central and West Asia, East Asia, the Pacific, South Asia, and Southeast Asia; and six thematic and sector groups covering economic research and regional cooperation; environment, natural resources and agriculture; finance sector; private sector operations; social sectors and public management; and sustainable development and climate change.
The new operating model of ADB is based on a client-centric structure, with five regional departments becoming a single window for all ADB products and services, both sovereign and nonsovereign. Staff and expertise from the sectors, themes, and other specializations in which ADB operates will be consolidated, with increased deployment to regions and countries to offer a better range and quality of solutions.
Rationale for Change
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The rationale for change is based on the need to adapt to the complex development challenges faced by Asia and the Pacific in the context of the COVID-19 pandemic, climate change, digital transformation, rising inequalities, geopolitical uncertainties, and other factors. These challenges require ADB to provide more tailored, innovative, integrated, and timely solutions to its DMCs.
The new operating model will enable ADB to achieve four key shifts that will enhance its development effectiveness:
- Increase its capacity as the region’s climate bank by aligning all its operations with the Paris Agreement goals, scaling up climate finance, supporting low-carbon transitions, enhancing climate resilience, and promoting nature-based solutions.
- Strengthen its work to develop the private sector and mobilize private investments in the region by expanding its nonsovereign operations across all sectors and themes, leveraging blended finance instruments, fostering public-private partnerships, catalyzing capital markets development, and facilitating knowledge transfer.
- Provide a larger range of high-quality development solutions for its DMCs by offering more customized policy advice, technical assistance, capacity building, knowledge products, digital platforms, innovative financing modalities, and multisectoral approaches.
- Modernize ways of working to make it more responsive, agile and closer to clients by simplifying business processes, enhancing staff mobility and flexibility, strengthening collaboration across teams and partners, empowering resident missions with more authority and resources, and fostering a culture of learning and innovation.
Implications for Consulting Services
The new operating model will have implications for the need for consulting services and how consultants will be selected. Some of these implications are:
- The demand for consulting services may increase as ADB expands its portfolio of products and services across all sectors and themes, especially in areas that require specialized expertise or innovative solutions.
- The quality of consulting services may improve as ADB adopts more rigorous standards for selecting consultants based on their qualifications, experience, performance, value for money, diversity.
