1. Managing and Measuring PEM Reform Panel session Wednesday 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?