Managing and Measuring PEM Reform Panel session Wednesday April 5, 2006

1. Managing and Measuring PEM ReformPanel sessionWednesday April 5, 2006

2. Why is this important?

3. Important Issues • Management arrangements • Sequencing • Balance between different aspects of of reform • Alignment with other reforms • Measuring change • Winning support

4. Issues for Managing Reform • Important to have an overall strategic framework • But don’t try to blue print the whole reform programme – focus detail on next step • Build ownership and support around the strategic framework. • Get steering arrangements in place with broad representation • Central unit, but drive reforms from operational level. • Address cross cutting issues and create cohesion around them.

5. Sequencing Really matters; lack of attention to it is why many reform programmes struggle. Need to be clear about: • What things need to come first before other things can happen. • Which things need to be introduced alongside each other in order to support each other. • How far and how fast it is realistic to go.

6. Balance – Technical Change is Not Enough

7. Reform Can’t Be Fully Sequential • Some things need to start now simply because they take a long time to develop even if they cannot be used until later • There may be a window of opportunity to start something now even if it is a bit out of sequence. • There may be a chance to respond to an enthusiasm expressed by somebody in a position of power to make things happen.

8. Aligning PFM Reforms with Other Reforms PFM reform cannot take place in isolation The following all have major implications for each other: • Public financial management reform • Public sector institutional reform • Public service management reform • Pay reform • Legal reform Must look for strategic alignment – can’t build into one big reform strategy.

9. Measuring Change International benchmarks (such as PEFA and HIPC) have a role: • They provide a balanced framework • They build a bridge with donors • They provide a basis for comparing with how others are getting on. But: • They are not the basis of a strategy • They may not pick up domestic interests

10. Winning Support Broadly based support is essential. From politicians • Get them involved in the Steering arrangements • Let them know what is in it for them From other central Ministries • Seek to align and support strategies that they may have • Neutralise any threats (for example for any MOE’s) From those who must work within the PFM system • Use the measures of change to help them to understand what MOF is trying to do and what it will do to help them • Make it clear what they may gain, but that they will be dependent on response to reform and their performance From the public • Develop media campaigns • Shout the successes

11. Suggested Issues for Discussion • Do you have an overarching reform framework strategy and what sort of sequencing issues have arisen? • What are your experiences of managing reforms that cut across more than one Department (or more than one Ministry)? • Have you had problems where your reforms rely on what is going on in other reform efforts and how have you tackled them? • How do you measure your progress?