Michael Ward Director 25 th February, 2010 AUDIT / TAX / ADVISORY / LINE OF BUSINESS Work-in-Progress Study to Assess the Extent to which various Government Institutional Reforms and Processes are Aligned and Contribute to the Implementation of MKUKUTA

2 Contents Terms of Reference Methodology Framework for viewing reforms as change programmes Main Findings Main Recommendations Reform Institutional Arrangements Reform Coordination Unit

3 Terms of Reference Objective and Scope Assess progress made in core reforms (PFMRP, LGRP, LSRP, PSRP, NACSAP, and BEST). Determine the impact of the reforms on MKUKUTA Objectives Assess capacity and leadership to manage these reforms Methodology Interviews with GoT and DPs Review of documentation

4 Framework: Is all change the same? Abortive Change Abortive change is, unfortunately, an all too common type of change. Most organizations have suffered from projects and initiatives that fail, are aborted, or fall far short of their anticipated outcomes. Organisation Performance TIME

5 Symptoms of abortive change Change fatigue Increased cynicism and resistance from staff to the latest fad Low morale Decreased performance Failure to complete project after project

6 Incremental change Often a very effective, low risk change strategy Doing currently established process better. Business Performance TIME

7 Advantages of incremental change Requires relatively little organizational pain Has a low risk of causing large scale failure The end state is very clear from the beginning of the initiative Breaks cycle of cynics

8 Transitional change Transitional change is the next step up in complexity A distinct step change between and old way of doing things and a new, entirely different mode of operation It is generally implemented to fix a problem Business Performance TIME

9 While human related factors exist they tend not to be prevalent and are relatively simply to contain with careful planning However unlike the continuous improvement type of change, if these human factors are ignored business performance can suffer significant dips Typical change management issues for this sort of change can centre on: No valid case for change made, so the initiative resisted Lack of skills to operate under the new initiative Inadequate understanding of expectations of performance A lack of support once the initiative is in place Inertia or simple fear of failure Typical issues during transitional change

10 Transformational change Greatest benefits, greatest risk. Almost always causes a significant performance dip, In an ideal scenario however the bounce back in performance is strong and delivers benefits far greater than the original situation. Business Performance TIME Project Commences

11 Characteristics of transformational change Transformation change is so significant that in order for it to be successful the culture, perception and behaviour of staff must radically alter from their current situation This is where change management is at its most complex requiring focused, informed analysis, translated into highly customized interventions by those best placed to influence proceedings.

12 Main Findings Institutional Arrangements of Core Reforms The right type of institutional arrangements (and resources) also depends on the type of change that is trying to be achieved; Governance arrangements similar—means of engaging leadership DPs have a role: ‘reform bring together GoT and DPs; DPs have a huge presence in core reforms; they make sure reforms are happening’ Additional resources but integrated

13 Main Findings Current Pace of Reforms and Bottlenecks and Impediments How to determine what is the right pace depends on the type of change that is trying to be achieved Bottlenecks and Impediments are well-known and documented Bedding down the systems and using them; Changing attitudes and behaviours, and culture—among the implementers (the last step in a change process). Scope and ambition is high

14 Main Findings Effectiveness of reforms in facilitating MKUKUTA Objectives Perhaps not clear how the change MKUKUTA was trying to achieve would happen. Nor was it clear what role the reforms should have in facilitating the achievement of MKUKUTA objectives Some 50% of MKUKTA indicators have links to the reforms) But are reforms 100% aligned to MKUKUTA

15 Main Findings Comparison of Reform Monitoring and Evaluation Frameworks Results chains linkages are often weak M&E systems being revised and strengthened The challenge: bedding down and using The risk: undermines GoT authority and ownership

16 Other Areas of Focus Synergies and Conflicts across Core Reforms Integration of Cross-Cutting Issues Equity in Service-delivery LSRP value for money audit

17 Recommendations Institutional Arrangements Structure is fine—making the structures work Recognition that coordinating reforms requires more resources—building the capacity of Reform Coordination Units and those responsible for implementing reforms (eg. Planning and reporting) Outsiders can be effective at facilitating change—see contextual factors which insiders do not see.

18 Recommendations Reform Coordination Unit Early signs are positives Sound logic—Strengthens the ability of the Chief Secretary to hold PS accountability for reforms Promote greater understanding between reforms Could the RCU have an expanded role? Support Programme Coordination Units to drive the reforms, particularly through a coordinated communication and change management campaign; Those implementing change can stand to lose from the change being achieved. How can the RCU develop own understanding of grounded realities

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