1. The World Bank Implementing Financial Management Information System Projects: Selected Lessons from IFMIS Community of Practice Bill Dorotinsky October 15, 2008

2. The World Bank 2 Outline Origins and some basic findings Formalizing a FMIS maturity model A frequent question - Make vs. Buy

3. The World Bank 3 COP Origins: Bank FMIS Project Review The review covered 34 projects in 27 countries across 6 regions, involving $1 billion over 17 years Most Bank projects were not FMIS-only, but embedded in broader financial management or public sector reforms Many of the projects paid attention to training and ‘soft systems’ surrounding the technology, including FM training, change management training/advice An FMIS project, on average, –took 7 years to be complete Ranging from 9.1 years for Africa to 5.8 years for Latin America/Caribbean –average Bank-financed cost was $12.3 million* –component changes in 75 % of projects * Excluding $600 million for Russia

4. The World Bank 4 Risks, success & failure factors Projects risks –20 % cited technical complexity, too many components –24 % lack of institutional capacity –21 % weak government commitment Success factors –Full-time project coordinator (36%) –Champion at political level (14 %) –Training (14 %) (IT, FM, change management) Failure factors –Full-time project coordinator (23%) –Commitment (23%) –Project design (20%)

5. The World Bank 5 Preconditions for success? HR Capacity, ICT Readiness, & Project Success 0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 Burkina Faso L Malawi L Uganda L Bolivia L Indonesia L Brazil L Guatemala (1) S Nicaragua S Honduras S Ecuador (2) S Columbia S Chile S Hungary S Argentina S Human Development Index*E-gov Readiness* (Human Development Index: UNDP Human Development 2001 Index, E-government Readiness: UNPAN Global E-Government Index)

6. The World Bank 6 February 2008ECA Treasury / PFMS Projects6 Treasury/PFMS Maturity Framework Readiness  PFM reform strategy  Institutional capacity  Countrywide network infrastructure 1 Preparation  Legal and institutional frameworks  Budget coverage  Treasury Single Account (TSA) 2 PFMS Design  Definition of system functionality  Detailed technical requirements 3 Procurement  Large scale ICT systems  Technical Assistance and Training 4  System development & integration  Full scale testing and rollout  Training and change management Implementation 5 Maintenance and Support  Budget funds  Technical capacity  System administration  Maintenance 7 9 – 18 months 9 – 18 months 18 – 36 months Resources Effectiveness Time Monitoring & Evaluation  Monitoring mechanisms  Project mgmt capacity 6 Maturity Framework for Treasury/PFMS projects www.pempal.org/pfmstool interactive monitoring and management of MF indicators

7. The World Bank 7 Make vs. Buy Question: Selected Parameters 1. Development Period 2. Functionality 3. Compliance with BPR 4. Total Cost of Ownership (TCO) 5. Intellectual Property Rights (IPR) 6. Maintenance and Upgrades 7. Flexibility 8. Integration with other systems and modules 9. Performance and Quality 10. Documentation and Training 11. Software Evaluation 12. Legal Redress Conclusion – no one right answer.