Implementing Financial Management Information System Projects: Selected Lessons from

IFMIS Community of Practice

Bill Dorotinsky
October 15, 2008
The World Bank

Outline
Origins and some basic findings Formalizing a FMIS maturity model A frequent question - Make vs. Buy

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COP Origins: Bank FMIS Project Review

The review covered 34 projects in 27 countries across 6 regions, involving $1 billion over 17 years

Most Bank projects were not FMIS-only, but embedded in broader financial management or public sector reforms
Many of the projects paid attention to training and soft systems surrounding the technology, including FM training, change management training/advice An FMIS project, on average, took 7 years to be complete Ranging from 9.1 years for Africa to 5.8 years for Latin America/Caribbean

average Bank-financed cost was $12.3 million* component changes in 75 % of projects

* Excluding $600 million for Russia
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Risks, success & failure factors

Projects risks 20 % cited technical complexity, too many components 24 % lack of institutional capacity 21 % weak government commitment Success factors Full-time project coordinator (36%) Champion at political level (14 %) Training (14 %) (IT, FM, change management) Failure factors Full-time project coordinator (23%) Commitment (23%) Project design (20%)
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Preconditions for success?

HR Capacity, ICT Readiness, & Project Success
Burkina Faso L
0.9

Argentina S Hungary S

0.8 0.7 0.6 0.5 0.4 0.3

Malawi L Uganda L

Chile S

0.2 0.1 0

Bolivia L

Columbia S

Indonesia L

Ecuador (2) S Honduras S Nicaragua S

Brazil L Guatemala (1) S

Human Development Index*

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E-gov Readiness*
5

(Human Development Index: UNDP Human Development 2001 Index, E-government Readiness: UNPAN Global E-Government Index)

Treasury/PFMS Maturity Framework

Effectiveness

Implementation
System development & integration Full scale testing and rollout Training and change management

Maintenance and Support

Budget funds Technical capacity System administration Maintenance

Procurement
Large scale ICT systems Technical Assistance and Training

18 36 months

Time

PFMS Design
Definition of system functionality Detailed technical requirements

9 18 months Monitoring & Evaluation

Preparation
Legal and institutional frameworks Budget coverage Treasury Single Account (TSA)

2
9 18 months

Monitoring mechanisms Project mgmt capacity

Readiness
PFM reform strategy Institutional capacity Countrywide network infrastructure February 2008 The World

Maturity Framework for Treasury/PFMS projects

www.pempal.org/pfmstool interactive monitoring and management of MF indicators

Bank

ECA Treasury / PFMS Projects

Resources 6
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Make vs. Buy Question: Selected Parameters

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. Development Period Functionality Compliance with BPR Total Cost of Ownership (TCO) Intellectual Property Rights (IPR) Maintenance and Upgrades Flexibility Integration with other systems and modules Performance and Quality Documentation and Training Software Evaluation Legal Redress
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Conclusion no one right answer.

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