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World Bank Presentation by Dr. Andy Macdonald


Sense of Urgency. Develop Powerful Coalition. Create the Vision ... Greater perceived authority/experience. No baggage. Easier access to key decision makers ... – PowerPoint PPT presentation

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Title: World Bank Presentation by Dr. Andy Macdonald

World Bank Presentationby Dr. Andy Macdonald
  • Washington, D.C.
  • June 29, 2001

Presentation Outline
  • Brief Review of Work Experience
  • Competencies and Lessons Learned
  • Change Management Experience
  • Experience in Canada, Australia and South Africa
  • Purely personal observations on success
    strategies and relevance to development
  • Discussion

Early Work Experience (1963-76)
  • Electrical Engineer
  • Problem analysis
  • Project management
  • Transportation Expert
  • Regional development
  • Systems costing
  • Transportation Institute
  • Project management
  • Focusing researchers on results
  • Transport Canada
  • Strategic Planning
  • Federal-provincial relations
  • Results-based resource allocation
  • Budgeting process

Office of the Comptroller General
  • Budget and Estimates reform
  • Policy development implementation
  • (Selling the unwanted to the unwilling)
  • Parliamentary Liaison
  • (leading the horse to water)
  • Program budgeting early experiences
  • Supply push vs. demand pull the challenge
  • Government Financial Management
  • Perceptions of senior management
  • Cash management
  • Risk approach to control
  • Accrual accounting

Comptroller General (1989-1993)
  • Governance issues
  • Functional direction in 3 communities
  • Financial Transparency
  • Financial statements
  • Linkages to outputs
  • Fraud monitoring detection
  • Program performance measurement
  • Role of program evaluation, audit, financial
  • Management representations
  • Audit assurance
  • Human resource management issues
  • Targeted recruitment/development programs
  • Staffing of key individuals

CIO- Canada (1993-95)
  • Government-wide approach
  • Major cultural change
  • Internal and external impacts
  • IT Strategic Plan
  • Business/HR/information focustechnology
  • Major communications effort
  • Multiple stakeholders, deep-seated prejudices
  • Internal process re-engineering
  • Council for change
  • Procurement processes
  • Time to achieve change

CIO Australia (1995-98)
  • First CIO
  • Challenges of government-wide approach
  • External change agent
  • Role of visible senior champion(Minister)
  • Strategic Plan
  • Service delivery focus
  • Significant public interest
  • Department involvement
  • Internal and external impacts
  • Challenges of implementation ( coming down from
    60,000 feet)

CIO Australia (Continued)
  • Outsourcing Initiative
  • Major cultural change, strongly resisted
  • Approval process dictatorship of the Cabinet
  • Opposition
  • IT community
  • Departments and their Ministers
  • IT Industry SMEs economic development
  • Opposition party and parliament processes
  • Excellent example of change management
  • Communications strategy
  • Lessons learned

Change Mangement Principles
  • Sense of Urgency
  • Develop Powerful Coalition
  • Create the Vision
  • Communicate the Vision
  • Empowering others to act
  • Get early successes
  • Build on early successes for fundamental changes
  • Institutionalize the changes Kotter, John P.,
      Leading Change , The Leaders Change
    Handbook, Jossy Bass (San Francisco, 1999) p 99.

Principles IT Outsourcing
  • Urgency crisis can be opportunity
  • Incoming governments 1 Billion IT spend
  • Competitive Government in Asia Pacific
  • Powerful Coalition inside out
  • Minister of Finance, Senior Advisor, Treasurer
    and PM
  • State support politically (South Australia,
  • AIIA major players
  • Create the Vision
  • Best practice in private sector- non-core
  • Market testing basis, not by fiat
  • Benefits extend far beyond cost savings
  • Technical currency, service levels, career paths
    for IT staff,scalable assistance
  • Key strategies credible market testing,
    communications throughout exercise, cluster
    approach, departmental champions

Principles IT Outsourcing (contd)
  • Communicate the Vision
  • Cabinet decision and resource adjustments
  • Role of Minister, CGIO in championing vision
  • Four stages of adjustment
  • Specific communications person general
    meetings, departmental meetings, weekly
    newsletters, conference speaking engagements,
    media interviews
  • Political costs of communication
  • Empowering others to act
  • Many obstacles to change departmental
    Secretaries, IT community, IT SMEs, Opposition
    party, Senate, media
  • Major pension policy changes required
  • Economic development multiple objectives
  • Departmental champions and peer group endorsement
  • Risk management concept difficult in polarized
    political environment

Principles IT Outsourcing (contd)
  • Early successes
  • Build momentum and credibility for initiative
    risk of lost momentum
  • Veterans Affairs Department of Finance
    unanticipated outcome
  • No rewards for successes governments tend to
    punish more than reward
  • Institutionalizing the changes
  • The most difficult part bureaucracies are very
    immobile and tend to snap back when the pressure
    is relieved
  • Changes take a long time to implement and require
    constant pressure until the process becomes
  • The Humphrey review - 2001

Personal Reflections
  • Major change is possible in government
  • People change when the perceived cost of change
    is exceeded by the cost of the status quo
  • But, reform in government requires patience
  • Risk averse culture status quo safer
  • NIH resistance can be quite pronounced - were
  • Multiple competing objectives complicate change
    management process
  • Nature of government processes
  • Competing stakeholders pressure to satisifice vs.
  • Optimal solutions rare practical trade-offs
  • Criticism from opposition

Personal Reflections (Contd)
  • Major change can only occur after a strong shock
    to the system
  • Small vs. large budget cuts
  • Expect strong resistance from the agencies
  • Strength of status quo
  • Needs strong support from the centre
  • Continuous pressure to continue the process
  • Budget cuts get attention

Personal Reflections (Contd)
  • External change agents have greater chance of
  • Greater perceived authority/experience
  • No baggage
  • Easier access to key decision makers
  • Unencumbered by internal constraints tell it
    like it is
  • Senior, highly-visible and articulate
  • Complemented by internal champions at middle
    management levels
  • South Africa experience
  • Communications is critical
  • Your can never over-communicate
  • All stakeholders targeted, including affected

Personal Reflections (Contd)
  • Metrics are critical to monitor change
  • If you are not keeping score, you are only
    practisingInter-agency benchmarking for
    comparison of progress
  • Peer group endorsement strategy
  • Wide consultation with agencies
  • Shared project responsibility
  • Lead agency concept
  • Knowing when to stop consulting
  • Information is a strategic government resource
    that is underdeveloped

Personal Reflections (Concluded)
  • External pressures from funding agencies can be
  • Major shock to system
  • External agent of change
  • Expertise provided
  • Locking it in
  • Requires internal senior champion and supportive
    agencies (peer endorsement)
  • Bureaucratic buy-in is important for long term
  • Benefits must accrue to the public

  • Discussion
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