Lessons Learned & Good Practices

1. Rome, Italy November 18, 2010 Rumyana Tonchovska Senior Land Administration Officer – IT, FAO Gavin Adlington ECA Land Programme Leader, World Bank Lessons Learned & Good Practices ECA EXPERIENCE INDEVELOPPIG CADASTRE AND REGISTRATION IT SYSTEMS

2. FAO/WB Cooperative Programme (CP)ECA Region /7/2009 -30/4/2010 Land Administration and Management is recognised as the leading example of collaboration between the FAO and the World Bank through the CP It accounts for about 30% of the work delivered by FAO for the World Bank’s European and Central Asia (ECA) region 2

3. The WBs ECA region. Red=CIS 3

4. Countries in ECA with WB funded Land Administration and Cadastre projects 40 projects 24 stand alone Land Administration projects 16 with large Land administration components 23 countries US$ 1.1 billion in loans and grants 19 projects currently ongoing The largest program of land reform the world has ever seen! 4 4

5. The Changes in ECA Region Have Been RADICAL In 2000 Hernando de Soto linked the situation in transition countries to those of the less developed world and stated: “….. today they look astonishingly similar: strong underground economies, glaring inequality, pervasive mafias, political instability, capital flight and flagrant disregard for law ….. most people can not participate in an expanded market because they do not have access to a legal property rights system that represents their assets in a manner that makes them widely transferable and fungible.” The Mystery of Capital. 5

6. Doing Business 2010 9 of the top 20 performers in registering property Worldwide are ECA countries: And climbing a mountain is done “one step at a time” 6 2. Georgia 4. Lithuania 5. Armenia 9. Azerbaijan 10. Belarus 11. Slovakia 13. Estonia 17. Moldova 19. Kyrgyzstan

7. Changes in the ECA Region Were Done in Several Stages... 7 • Pre-1989 • State ownership very common • Private ownership in some Central European countries, but transfers of ownership discouraged. • Mortgages generally unavailable. • 1989 – 2000 • Various programs to privatize land and property, and establish registration systems. • 2000-2010 • Building on the reforms.

8. Land Management Projects in ECA Stage 1 and Stage 2 Stage 1 • Focused on Land Privatization • Business, housing and enterprise privatisation • Restitution of property rights • Institutional development and Legal base Stage 2 • Registration of property rights and encouraging land and property markets to operate • Cadastre and Systematic registration • Improving services through changes in work flows, procedures, IT systems, introducing service standards 8

9. Countries in ECA with Computerised Land Administration and Cadastre Systems 9

10. Land Management Projects in ECA Stage 3 The countries in the ECA region are requesting World Bank support in two key areas: Improving the quality of services and reducing corruption through e-government initiatives. The E-Cadastre; Spatial Data Infrastructure and meeting the requirements of the INSPIRE Directive. 10

11. The World Bank support for the next five to ten years in ECA region will be focused on the following five broad objectives: Objective 1:Completion of property registers and cadastres to provide safe and secure property rights, and facilitate privatization and land reform; Objective 2: Development of a more integrated approach to land management through land policies that reflect environmental and sustainable development concerns; Objective 3:Encouraging innovation and the use of SDI or spatial information underpinning new products and services; Objective 4:Improving the management of the organization and use of space data; Objective 5:Supporting governance and quality and method of services provided The World Bank Land New Agenda in ECA - Stage 3 11

12. FAO Current Work on Land Tenure The current FAO work on Land Tenure includes: Investigations of the land tenure implications of climate change scenarios and policy options in relation to the rapid growth of land use for bioenergy production; land tenure in emergency and post-emergency work; compulsory purchase of land and compensation; state land management; low-cost land tenure security; good governance in land administration; making land information accessible for the poor. 12

13. IT Worldwide Statistics!

14. WORLD IT Systems Statistics More than 3 in 5 IT projectsdo not do what they were supposed to do for the expected costs and within the expected timeline. At best,7 out of 10 IT projects “fail” in some respect. More gloomy stats include the following: • 49 % suffer budget overruns • 47 % result in higher than expected maintenance costs • 41 % percent fail to deliver the expected business value 14

15. $6.2 trillion/year Worldwide cost of IT failure Region GDP $ BillionCost of Failure $ Billion • World 69,800.00 6,180.48 • USA 13,840.00 1,225.47 • New Zealand 44.00 3.90 • UK 2,260.00 200.11 • Texas 1,250.00 110.68 The Diagnose: Predicted Annual Cost of IT Failure The cost of a failed project is only the tip of the iceberg. Every project failure incurs both direct costs (the cost of the IT investment itself) and indirect costs (the lost opportunity costs). 15

16. FAILURE & SUCCESS FACTORS

17. Factor Percent 1 Incomplete requirements 13.1 2 No user involvement 12.4 3 Lack of resources 10.6 4 Unrealistic expectations 9.9 5 No support from senior management 9.3 6 Unstable requirements 8.7 7 Poor planning 8.1 8 System non-usable at finish 7.5 9 No IT management 6.2 10 No technical competence 4.3 FAILURE FACTORS 17 RPM-50

18. The level of competency required is higher than that employed within projects for 70% of the cases According to new research, success in 68% of technology projects is “improbable.” Poor requirements analysis causes many of these failures, meaning projects are doomed right from the start.

19. “Ambiguous requirements create failed projects”

20. Factor Percent 1 User involvement 15.9 2 Support from senior management 13.9 3 Clearly defined requirements 13.0 4 Good planning 9.6 5 Realistic expectations 8.2 6 Phased approach 7.7 7 Competent personnel 7.2 8 User ownership 5.3 9 One vision and clear goals 2.9 10 Effective and goal oriented personnel 2.4 SUCCESS FACTORS 20 RPM-50

21. EARLY WARNING SIGNS

22. Twelve early warning signs of IT project failure • People-Related Risks • Lack of top management support • Weak project manager • No stakeholder involvement and/or participation • Weak commitment of project team • Team members lack requisite knowledge and/or skills • Subject matter experts are overscheduled • Process-related Risks • No business case for the project • Lack of documented requirements and success criteria • No change control process (change management) • Ineffective schedule planning and/or management • Communication breakdown among stakeholders • Insufficient Resources assigned Managers often express SURPRISE upon learning their project will run LATE or OVER-BUDGET

23. Building Houses & Building IT Systems

24. Building a House 24 Step 1: Preparation Conceptual Design; Detailed Architectural Design and Bill of Quantities; Selection of Project Manager Step 2: Tendering & Contracting • CONSTRUCTION • SUPERVISION Step 3: Building Construction Step 4:Supervision Step 5: Inspection Step 6: Final Acceptance Step 7: Maintenance

25. Building an IT Systems 25 Step 1: Preparation: • User and System Requirements. Business Processes Re-engineering; • System Architecture; • Selection of development approach; Step 2: Tendering & Contracting Step 3: Development & implementation • Inception Phase • Construction Phase • Elaboration Phase • Transition Phase Step 4: Quality Assurance Step 5: Phases Acceptance Step 6: Final Acceptance Step 7: Maintenance

26. ECA EXPERIENCEKey ChallengesGood Practices & Lessons Learned

27. Key Challenges- Cadastre and Registration IT Systems • Complex institutional arrangements; • Lots of stakeholders involved; • Complex procurement procedures; • Unclear vision. Often the SW development starts prior to the Business Strategy; • Institutional reorganization going in parallel with the SW implementation; • Legal changes at the time of system development and implementation; • Underestimation of the complexity of the system; • Different old systems in use, not well documented, based on different technical platforms, using different data structures and different data definitions. Issues with intellectual property rights; • Data quality. Non harmonized data between the cadastre and registration services; • Common standards and data definitions; • Institutional capacity to manage big IT systems and perform quality control. QA/QC are not foreseen at the project design.

28. Good PracticesICT Strategy • ICT Strategy Developed with clear: • 1. Organizational part (WHO? is responsible) • Suggested management and quality assurance mechanism; Defined the necessary institutional capacity to manage the development and the implementation of complex IT System. • 2. Methodological and Managementpart (HOW? the IT project will be managed) • 3. Technical part (WHAT?and WHEN? will be implemented).Defining Short-term, mid-term and long-term priorities. • Albania, Bulgaria, Croatia, Kosovo, Kyrgyzstan, Macedonia, Serbia, • Under development in Montenegro, Bosnia and Herzegovina 28

29. Good PracticesManagement and Quality Assurance Mechanism Examples: Albania, Bulgaria, Croatia, Kyrgyzstan 29

30. Good PracticesUser Requirements Preparation Examples: Croatia: Business processes working group was established, trained and competent to develop use-cases AS-IS, to work on the re-design of the business processes – TO-BE, participated in the development of User requirements, worked with the contractor at the design phase, participated in the testing and acceptance. The head of the working group was member of the Project Management Body. Kyrgyzstan: External User Working Group was established to work on the external User Requirements and testing the external users functionalities: two banks, property valuators, real estate agents, notaries, municipalities, state architecture and taxation office.

31. IT System Development& Implementation Key Issues: • Unclear and not detailed User and SystemRequirements/unrealistic expectations; • Underestimation of complexity from both sides – purchaser and supplier; • Lack of experience in managing big IT systems from both the purchaser and supplier sides. • Contract management is underestimated; • Weak quality assurance and quality control from the purchaser side; • Data quality and Data Migration. The old systems in use are not documented and are using different data structures, resulting in additional delay; • Staff unavailability to support the system implementation. • Underestimation of training needs. Underestimation the need of procedural and legal training, prior to the IT system users training.

32. Good PracticesIT System Development& Implementation 32 Good Practices Examples: • Croatia: Clear User Requirements, Intensive Users involvement, Strong Quality Assurance (QA) and Quality Control (QC) • Serbia: Strong Project Management, QA and QC, clear requirements • Macedonia, Moldova, Montenegro, Kyrgyzstan: Step-by-Step - small contracts for SW development and implementation; • Bulgaria: Well organized system roll-out and training. The nation-wide roll-out was organized within 6 months period only; • Turkey and Russia:Good examples of system implementation in big countries.

33. Good PracticesIT System Roll-Out and Training 33 Bulgaria: Training and roll-out within 6 months: • Phase 1: One week - Basic IT training, Legal and Procedural training, IT system basic functionalities training • Phase 2: Self training – at the working environment – 10-30 % of the incoming cases were entered into the testing environment several months before the system roll-out • Phase 3: One week - Legal and Procedural training, IT system advance training • Phase 4: On-the-job training – 1-3 days after the system implementation in the office. Help Desk: Available at the time of system roll-out. Interactive Help – both Procedural and IT Users Manual available with cross references; Roll-Out: Data migration – Friday night after the end of the working time. Testing – during the weekend. Monday – the office is working with the new system only. The old system was used for information only.

34. System Operation and Maintenance Key Issues: • Lack of capacity within the administration to maintain complex systems and databases. Uncompetitive salaries in the public sector in comparison with the private sector – difficult to keep employ qualified IT staff with Governmental salaries; • Lack of capacity to keep the data updated and support the data harmonization process after the project completion; • Limited private sector involvement; • Continuing to keep both paper and digital data, which requires double efforts and long processing time. 34

35. Good PracticesSystem Operation and Maintenance Examples: Croatia Public-Private Partnership. The Government of Croatia decided to outsource the system operation and Maintenance to the hosting company with experience in managing big nation-wide IT systems, such as customs and taxation; The hosting company was involved at the time of design of HW technical specifications, testing and acceptance of the HW and licenses and system integration process. Bulgaria Two separate long-term contracts have been signed with the private companies for the maintenance of the system in the two data centers (Disaster Recovery 35

36. THANK YOU! 36