michael ward director 25 th february, 2010 audit / tax / advisory / line of business...
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Michael WardDirector
25th February, 2010
Michael WardDirector
25th February, 2010
AUDIT / TAX / ADVISORY / LINE OF BUSINESS
Work-in-Progress
Study to Assess the Extent to which various Government Institutional Reforms and Processes are Aligned and Contribute to the Implementation of MKUKUTA
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ContentsContents
Terms of ReferenceTerms of Reference
MethodologyMethodology
Framework for viewing reforms as change Framework for viewing reforms as change programmesprogrammes
Main FindingsMain Findings
Main RecommendationsMain Recommendations
Reform Institutional ArrangementsReform Institutional Arrangements
Reform Coordination UnitReform Coordination Unit
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Terms of ReferenceTerms of Reference
Objective and ScopeObjective and Scope
Assess progress made in core reforms (PFMRP, LGRP, Assess progress made in core reforms (PFMRP, LGRP, LSRP, PSRP, NACSAP, and BEST). LSRP, PSRP, NACSAP, and BEST).
Determine the impact of the reforms on MKUKUTA Determine the impact of the reforms on MKUKUTA ObjectivesObjectives
Assess capacity and leadership to manage these Assess capacity and leadership to manage these reformsreforms
MethodologyMethodology
Interviews with GoT and DPsInterviews with GoT and DPs
Review of documentationReview of documentation
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Framework: Is all change the same?Framework: Is all change the same?
Abortive ChangeAbortive ChangeAbortive change is, unfortunately, an all too common type of change. Abortive change is, unfortunately, an all too common type of change.
Most organizations have suffered from projects and initiatives that fail, Most organizations have suffered from projects and initiatives that fail, are aborted, or fall far short of their anticipated outcomes.are aborted, or fall far short of their anticipated outcomes.
Organisation Performance
TIME
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Symptoms of abortive changeSymptoms of abortive change
Change fatigueChange fatigue
Increased cynicism and resistance from staff to the Increased cynicism and resistance from staff to the latest fadlatest fad
Low moraleLow morale
Decreased performanceDecreased performance
Failure to complete project after projectFailure to complete project after project
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Incremental changeIncremental change
Often a very effective, low risk change strategyOften a very effective, low risk change strategy
Doing currently established process better.Doing currently established process better.
Business Performance
TIME
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Advantages of incremental changeAdvantages of incremental change
Requires relatively little organizational painRequires relatively little organizational pain
Has a low risk of causing large scale failureHas a low risk of causing large scale failure
The end state is very clear from the beginning of the The end state is very clear from the beginning of the initiativeinitiative
Breaks cycle of cynicsBreaks cycle of cynics
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Transitional changeTransitional change
Transitional change is the next step up in complexityTransitional change is the next step up in complexity
A distinct step change between and old way of doing things and a A distinct step change between and old way of doing things and a new, entirely different mode of operationnew, entirely different mode of operation
It is generally implemented to fix a problemIt is generally implemented to fix a problem
Business Performance
TIME
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While human related factors exist they tend not to be prevalent While human related factors exist they tend not to be prevalent and are relatively simply to contain with careful planningand are relatively simply to contain with careful planning
However unlike the continuous improvement type of change, if However unlike the continuous improvement type of change, if these human factors are ignored business performance can these human factors are ignored business performance can suffer significant dipssuffer significant dips
Typical change management issues for this sort of change can Typical change management issues for this sort of change can centre on:centre on:
No valid case for change made, so the initiative resistedNo valid case for change made, so the initiative resisted
Lack of skills to operate under the new initiativeLack of skills to operate under the new initiative
Inadequate understanding of expectations of performanceInadequate understanding of expectations of performance
A lack of support once the initiative is in placeA lack of support once the initiative is in place
Inertia or simple fear of failureInertia or simple fear of failure
Typical issues during transitional change
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Transformational changeTransformational change
Greatest benefits, greatest risk.Greatest benefits, greatest risk.
Almost always causes a significant performance dip, Almost always causes a significant performance dip,
In an ideal scenario however the bounce back in performance is In an ideal scenario however the bounce back in performance is strong and delivers benefits far greater than the original situation.strong and delivers benefits far greater than the original situation.
Business Performance
TIME
ProjectCommences
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Characteristics of transformational changeCharacteristics of transformational change
Transformation change is so significant that in order Transformation change is so significant that in order for it to be successful the culture, perception and for it to be successful the culture, perception and behaviour of staff must radically alter from their current behaviour of staff must radically alter from their current situationsituation
This is where change management is at its most This is where change management is at its most complex requiring focused, informed analysis, complex requiring focused, informed analysis, translated into highly customized interventions by those translated into highly customized interventions by those best placed to influence proceedings.best placed to influence proceedings.
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Main FindingsMain Findings
Institutional Arrangements of Core ReformsInstitutional Arrangements of Core Reforms
The right type of institutional arrangements (and The right type of institutional arrangements (and resources) also depends on the type of change that is resources) also depends on the type of change that is trying to be achieved;trying to be achieved;
Governance arrangements similar—means of engaging Governance arrangements similar—means of engaging leadershipleadership
DPs have a role: ‘reform bring together GoT and DPs; DPs have a role: ‘reform bring together GoT and DPs; DPs have a huge presence in core reforms; they make DPs have a huge presence in core reforms; they make sure reforms are happening’sure reforms are happening’
Additional resources but integratedAdditional resources but integrated
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Main FindingsMain Findings
Current Pace of Reforms and Bottlenecks and Current Pace of Reforms and Bottlenecks and ImpedimentsImpediments
How to determine what is the right pace depends on the How to determine what is the right pace depends on the type of change that is trying to be achievedtype of change that is trying to be achieved
Bottlenecks and Impediments are well-known and Bottlenecks and Impediments are well-known and documenteddocumented
Bedding down the systems and using them;Bedding down the systems and using them;
Changing attitudes and behaviours, and culture—among the Changing attitudes and behaviours, and culture—among the implementers (the last step in a change process).implementers (the last step in a change process).
Scope and ambition is highScope and ambition is high
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Main FindingsMain Findings
Effectiveness of reforms in facilitating MKUKUTA Effectiveness of reforms in facilitating MKUKUTA ObjectivesObjectives
Perhaps not clear how the change MKUKUTA was Perhaps not clear how the change MKUKUTA was trying to achieve would happen.trying to achieve would happen.
Nor was it clear what role the reforms should have in Nor was it clear what role the reforms should have in facilitating the achievement of MKUKUTA objectivesfacilitating the achievement of MKUKUTA objectives
Some 50% of MKUKTA indicators have links to the Some 50% of MKUKTA indicators have links to the reforms)reforms)
But are reforms 100% aligned to MKUKUTABut are reforms 100% aligned to MKUKUTA
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Main FindingsMain Findings
Comparison of Reform Monitoring and Evaluation Comparison of Reform Monitoring and Evaluation FrameworksFrameworks
Results chains linkages are often weakResults chains linkages are often weak
M&E systems being revised and strengthenedM&E systems being revised and strengthened
The challenge: bedding down and using The challenge: bedding down and using
The risk: undermines GoT authority and ownershipThe risk: undermines GoT authority and ownership
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Other Areas of FocusOther Areas of Focus
Synergies and Conflicts across Core ReformsSynergies and Conflicts across Core Reforms
Integration of Cross-Cutting IssuesIntegration of Cross-Cutting Issues
Equity in Service-deliveryEquity in Service-delivery
LSRP value for money auditLSRP value for money audit
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RecommendationsRecommendations
Institutional ArrangementsInstitutional Arrangements
Structure is fine—making the structures workStructure is fine—making the structures work
Recognition that coordinating reforms requires more Recognition that coordinating reforms requires more resources—building the capacity of Reform resources—building the capacity of Reform Coordination Units and those responsible for Coordination Units and those responsible for implementing reforms (eg. Planning and reporting)implementing reforms (eg. Planning and reporting)
Outsiders can be effective at facilitating change—see Outsiders can be effective at facilitating change—see contextual factors which insiders do not see.contextual factors which insiders do not see.
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RecommendationsRecommendations
Reform Coordination UnitReform Coordination Unit
Early signs are positivesEarly signs are positives
Sound logic—Strengthens the ability of the Chief Secretary to hold Sound logic—Strengthens the ability of the Chief Secretary to hold PS accountability for reformsPS accountability for reforms
Promote greater understanding between reformsPromote greater understanding between reforms
Could the RCU have an expanded role?Could the RCU have an expanded role?
Support Programme Coordination Units to drive the reforms, Support Programme Coordination Units to drive the reforms, particularly through a coordinated communication and change particularly through a coordinated communication and change management campaign;management campaign;
Those implementing change can stand to lose from the change Those implementing change can stand to lose from the change being achieved.being achieved.
How can the RCU develop own understanding of grounded How can the RCU develop own understanding of grounded realitiesrealities
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Presenter’s contact detailsPresenter’s contact details
Michael WardMichael Ward
KPMG DASKPMG DAS
+255 782 833 553+255 782 833 553
[email protected]@kpmg.co.tz
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