ITF Staff Paper Nuriber S

A Frameworkfor Information Management

Nagy HamuaBrgite DuoesNoq K t ad e

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Informdon, Technology and FadiWes Departrnernt

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A Framework for Information Management

AprU 1990

Information, Tedhnology and Facilities Department

Foreword

This paper focuses on theinformation environment of the Band It setscurrent information management issues in thehistorical context of Bank eperence and exWlainswhy information management is critical to theevolving core businesses of the Bankl It alsoprovides background material for the paper:Infowtan Mangment and raTdoloV Sovew,presented to the Executive Board in November,1989. It represents the views of its authors towhom comments and suggestions should be

The authors are deeply indebted toHarinder Kohli whose intellectual leadership hasshaped the development of many ideas in thispaper. We have benefitted from extensivediscussions and comments on earlier drafts fromthe policy staff of ITF. We also wish to thankmany other Bank staff and outside reviewers whodevoted the time for commenting on earlier draftsand, in particular, Ian Scott, Hywel Davies,HaTold King, and Peter Keen.

Contents

I~~~~~~~~~~~. . . . . io. ........... _. .....l

II. Objectives _ ...... 23

m. Description of the Bank's InformationEnvironment ... ..... .......... ........

IV. Constra int ................................. ............. _ .

V. Strategy and Policy Framework ... 17

Chart I Overview of the Bankes InformationEnvironment

Chart 2 Cumrent Status of InformationProvions in the Bank

Annex 1 Overview of the Bank's InformationEnvironment. Information Use

Annex 2 Overview of the Bank's InformationEnvironment. Information Characteristics

Annex 3 Information Support for Higher Level Staffin Operations and PRE

Annex 4 Chronology of Information and TechnoloyMilestones

Annex S Management Arrangements

1. Introduction

1. The Bank's products and services are intellectual in nature. They areproduced by knowledge workers who use information as raw material. Accordingly,the Bank is a significant collector, consumer and producer of information, themanagement of which is central to its effectiveness. The Bank's product mix hasvaned conderably in respoose to changig circumstances, changes in tL2 perceivedneeds of its member countries, and improved understanding of the developmentprocess. Such changes, together with large increases in the volume and complexity ofits activities and products over the past 20 years, have led to a growing need forinformation from external and internal sources, underscoring the importance ofefficient management of information resourcv&1 To ranage information effectivelyand efficiently, an organization like the Bank requires a coherent policy frameworkfor information management. That this is particularly necessary in a decentralizedinformation resource management environment has been emphasized in recentreports by the Auditor GeneraL

2. The appropriate use of information technology is essential for the effee*ivemanagement of information. Today's innovations in information technology havemade it possible to address many difficult iformation management issues in new andeconomically advantageous ways. Examples of the economis of new informationtechnology abound. The capability of today's $4000 personal computer is almostequivaet to that of a milion dolar computer of the 1960s and 70Ls New informationstorage and retrieval devices using optical-disk technology can now store a largenumber of printed pages on a single disc that can be mass produced for under $10,and from which information can be retrieved in a few seconds. The rapid introductionof fiber optic technology in long-haul telecommunications systems at a fraction of thecost of adding conventional circuits is beginning to have a radical impact ontelecommunications alternatives and price performance. Today's workstation-basedspreadsheet program, costing a few hundred dolars and requiring a few hours ofwork, has replaced hundreds of hours and tens of thousands of dollars to carry outsomplex financial simulations. Extensive changes in software are occurring whichenable communication among data bases, user-friendly access to information invarious forms, and the capture of knowledge in expert systems. This vastly improvedcapabit, combined with a rapid decline in the real cost of information technologycomes at a time when the Bank must deal with the complex development challengesfaced by its borrwers, pressures to constrain its administrative budget, its increasingdemand for diversified development services and increasing real costs of itsprofessional staff

3. Like many tecnically oriented organizadons engaged in knowledge work,the Bank has had some successes and has made some false starts in its attempts tomanage ibformation resources. Initally, and largely as a result of the configurationand availability of technology at that time, centralized information-access andinformation-processing sevices concentrted almost exclusively on meeting central

J/ From: -Information Resource Strategic Planning Project" June, 1983.

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administration and resource management needs. As skills increased and officetechnology became more avaiable, large numbers of users independently acquiredtechnology and tried to build their own systems. This met with varying degrees oflocal success and led to mounting problems of intramural incompatibility. Asfragmentation increased, efforts were made to reestablish central control (mainlythrough restrictions on the systems that could be acquired), without revetsing theprocess of decentralization that was, by then, well under way. The era of "informationresource management" was established in light of a comprehensive analysisundertaken in 1979 to examine how the Bank's problems could be resolved.Mechanisms were established and initiatives were launched that were aimed atinstitution-wide coordination.

4. The need for an overall, Bank-wide, information management firameworkhas been recognized for many years and was the basis for the Information ResoureeManagement (IRM) concept and strategy developed in 1983. Two complementaryaspects of IRM were addressed at that time: overall information management (withlimited success) and the development of a technology infrastructure (with much betterresults). The need to provide shared access to much of the Bank's informationresources; to provide quality information to Bank staff; and to allocate scarceresources for optimal systems development, has continued to be important because aninstitution-wide framework for information management is available to guide theBank in using these resources.

5. In this setting, this paper explores the following questions:

o Why is improved information management necessary and importantin the Bank; what are the objectives of an information managementpolicy?

o What are the main characteristics of the Bank's informationenvironment; what types of information do we deal with in theBank?

o What are the primary constraints to effective informationmanagement? and;

o What are the key means to accomplishing the Bank's informationmanagement objectives?

Historical context

6. Current information management issues are best understood in thehistoaical context of Bank experience. A series of annexes (Annexes 4 through 9)document the Bank's history in various aspects of information technology. Theydescribe the driving forces of declining costs and greatly increased availability ofinformation technology, the process whereby computing resources and electroniccommunications, once regarded as scarce and esoteric, have become plentiful andcommonplace; and how mamnframe computers have become more flexible and easierto use while minicomputers have proliferated. The historical trend shows that

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information systems have increasingly been developed, operated and managd byusems

7. These Annexes also document how microcomputer-based applicatiors,becoming available in the market and began to be perceived as necessary tools forBank staff in the 1980s; how these facilitated the compitation, manipulation, analysisand transmission of infonnation but demanded greater skill in mnagin it; how skillsthat had once been the province of information technology specialit, managing largescale information systems and data bases became a necessity as Bank knowledgeworkers began to use technology in their daily worlk And they explain why the Banknot only needed management processes to deal with the technology itselKf but alsoneeded processes for information management to deal with problems associated withthe quality, timeliness and integrity of information stores and flows per se.

& The diffusion of information technology into many new areas of work a theBank created an organization-wide need to adapt its management practices to thisnew factor of production and to cope with the demands it imposed on worklife. Avariety of innovations and adaptations of the Bank's prior management practices werepursued. They were directed to the planning, introduction, administration, and controlof information technology. They involved a process of organizatonal learning. Achronicle of the highlights of this evolution is contained in Annex 8. The pervasivediffusion of information technology produced changes in -rganizational culture byprovoking shifts in customary ways of doing thihW Expectations of what could beaccomplished changed. The increasing awareness of information as a resourceamenable to management alongside financial, physical and human resources was theresult. Annex 9 is a bibliography of the historical documents from which the materialin Annxes 4 through 8 was, in large part, derived.

11. Objectives

A. The Need for Effective Information Management

9. There are four important business reasons for effective informationmanagement in the Bank:

(a) Ensure the Bank receives tdmely and accurate financial informationso as to be able to carry out its financial responsibilities and tomanage its financial risks;

(b) Assist Bank staff in fulfilling their development assistanceresponsibilities through the provision of appropriate information onmarkets, economies, projects and country experience;

(c) Provide the managerial information necessary to supportdecentralization of the Bank's decision-making processes andaccelerate a two-way flow of information and communication; and

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(d) Strengthen client relationships and enhance the Bankes catalytic roleby sharing appropriate information with the Banks bortowe8s andco-financing partners in a timely and responsive manner.

Discussion

10. The Reorganization of the Bank in 1987 both highlighted and increSed theneed for effective interaction and communication between organizatoal units andmanagement levels. The newly created Te. nial Departments found they could notfulfill their roles without intensive com- .. cations with the country departments.Similarly, the role of the Policy, Planning and Research Complex (now PRE) withrespect to ex post quality assurance and to innovative and forward-looking ideas inoperational work, was critically dependent on enhanced information systems andcommunication with the Operations Complex. A decentralized Bank called forsystems to allow institutional monitoring and evaluation of local decisions therebyensuring effective and timely decisions as weD as accountability, and the exchange ofideas through easy access to information for all levels of management and staff

1i Globalization, the volatility of financial markets and the financial risksassociated with the Bank's role in the heavily-indebted countries have placed a highpremium on timely and accurate information to support borrowing and investmentactivities. These factors have also reinforced the need for information sharingbetween Finance, Operations and PRE with respect to financial policy and risk

management.

12. Development assistance services continue to diversify and to requie both aglobal perspective and tailoring to the needs of diverse lient groups. The Africancountries need a broad range of technical assistance, policy analyses, and extension

ervices to facilitate adjustment, improve the implementation of investment programs,and address the diverse, complex and intense problems they are facing. These servicesrequire increased sophistication in the management of information resources toprovide timely analyses, deliver support services and share informatioa amongcountries on successes and failures. Similarly, development services needed by heavilyindebted middle income countries require financial engineering colaboration withmany financial institutions and continuous dialogue on adjustment issues. Persistentpoverty in Africa and low-income Asia demands increased attention to targetedprograms and in-depth understanding of local causes of the worst forms of poverty.The more advanced developing countries require new and more sophisticateddevelopment services to adjust to the rapidly changing global environment.

13. In each borrower group, the Bank is challenged to play a catalytic role, tointroduce new services, and to communicate in timely and effective ways. These tasksrequire extensive policy analysis, and the sharing of experience within the Bank, withits clients, and with other financial and aid agencies. In addition, it seems likely thatglobal interdependence in trade and finance will increase and structural chages willcontinue. This increases the need for establishing linkages between global, countryand sectoral analyses. The information-sharing implications of these trends aresubstantia especially within Operations and between Operations and PRE.

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14. Improved information management goes beyond contributing to theefficiency and effectiveness of the Bank's internal managemeat. In addition toincreased support to existing business processes and producSs, it can provide newproducts and services. The Bank of the 1990s must act as a catalyst and broker forfinancial and development assistance services in a volatile environment and incollaboration with many other actors. The Bank invests heavily in the collection andanalysis of data and information on the global economy, as welt as on countryeconomic and sector development. Such data bases or information stores could, indue time, provide information products for many types of external users. Someproducts may be offered as a publit. good to the development community, whileothers may be made available at appropriate pricing arrangements to interestedpublic and private entities. Similarly, financial engineering products could bedeveloped by exploiting both the Bank's unique position as the largest non-residentborrower in the world's major capital markets and tha availability of informationcontained in the Banks financial data bases. The BatWks netfwork of contacts with co-financiers, aid agencies, NGOs, and agencies could also benefit from informationproducts that would identify and support opportunities for development assistanceand private investment. Finally, the Bank's leadership responsibilities in thedevelopment community suggests a need to exploit its information resources insupport of its intellectual leadership.

B. Objectives for an Information Management Policy

15. The Bank's business as a 'knowledge-based' institution relies on threemajor factors of production: people, information, and financial resources. As aprimary institutional asset, information must be managed as a strategic resource andused to fulfill the Banks overall objectives. Information is thus an asset with potentialbenefits to be exploited and not merely an overhead cost. Generally, managing theBank's information means developing, maintaining and replenishing it, and treatinginvestments as means of improving access to and sharing information. There areseveral specific objectives:

i Manage the Bank's infornation as an institutional resource, byoptimizing the provision and shanng of information needed by staffmembers to do theirjobs

16. Sharing activities relate both to information transferred within the Bank andto information shared with borrowing countries. The objective is to facilitateinformation transfer and access through the idendfication, prioritization and phasingof specific information-sharing activities. In 1983 the IRM strategy recognized theseneeds and proposed a Bank-wide information system to give access to mostinformation to practically all staff. However, further experience with andunderstanding of the Bank's information needs, led to a more selective approach.Most Bank staff find themselves, increasingly, in a situation of simultaneousinformation overload and inability to get the information they need when they need it.There is thus a growing need to differentiate between the requirements of differentusers with respect to the presentation of information in the appropriate format, at theright time, at the appropriate level of detail, and at the appropriate level of quality.Information sharing should, at the same time, safeguard information security andlmit access to raw internal data by outside organizations.

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iL Reflect the Bank's business priorities in information managementprAgams and investnet pdioddes.

17. Priority attention should be given to information products that maximizethe benefits for the Bank and expioit the value-added of information created andrelined by Bank staff. Greater attention should be given to the information needs ofHigher-Level staff in Operations and PRE, so as to leverage their time and skills. Thisobjective imcludes supporting the Bank's institutional memnory to eniance instiutionallearning and to safeguard the continuity of the Bank's client's relations.

iii Ensure informadon is acquire4 create4 maintained, and shared cost-effectively, whilekgaranteeing its integrit (quaiy, accwucy, dimelinesscompleteness) and secui'ty.

18. Bank policies for information management should clarify and reflect, as faras possible, the full economic costs and benefit of accurate and timely information.Often, efforts at reducing the front-end costs of information systems developmentresut in a higher burde-n of information acquisition on the user. Information strategyin the Bank should ensure the preservation of decentralized decision making andsupport networking approaches. Information systems should be developed inaccordance with the principles of decentralization. Meanwhile, data standards, andcommunications protocols between systems, must be consistent to facilitateinformation sharing and avoid conflicting interpretations and redundancies. Also, thequality, integrity and security of decentralized data bases must be ensured.

iv. Increase choices for information users through flexibk formalinformation systems, appropnate incentives and support to informalinformaon-shainng activities.

19. Emer information technology should be tested to reduce the cost andexpand the choice for information users. Bank policies should faciltate the sharig ofideas, costs, and eWperiments on successful applications and on the strategic use ofinformation. To ensure information management policies are responsive toinformation users, managers and staff should have means to influence the formulationof such policies.

III. Description of the Bank's Information Environment

A. Overview of the Environment

20. The identification of business processes and systems to which theinformation is applied, is a first step in specifying requirements for informationmanagement. The Bank's information environment may be characterized in terms offive dimensions: (i) categories of information, (ii) major user groups within andoutside the Bank; (iii) major instruments containing this information; (iv) the form inwhich information is presented; and (v) the media in which information resides. Thetwo first dimensions are descrbed in detail in this Chapter. This description reveals

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the wide diversity of information sources, instruments, and uses in the Bank.Information is often -partially correctly- thought of in terms of large cimeric databases (BESD, FDB) or centralized MIS systems (OAS, OPS-MIS). in addition tothese information sources, there is a vast arrvy of other yvatems for storing,transferring, and retrieving information. Most of this information resides in text,rather than numbers, and is transmitted on paper or orally, rather than electronically.

21. Chart 1 which depicts this environment, was developed because:

o The Bank's infomaton environment is complea and must be lookedat from several perspectives, each demonstrating a high level ofoverall complexity, and because

o Specific information management strategies may be developed fordifferent categories of infornation. Information use is not monolithicneither is its management. Different categories of informationrequire different treatments.

22. Although there may be some overlap on the margins of each of the majorcategories of information brought together in Chart 1 they require differentinstruments and have different users. The Chart shows only the most importantinstruments and the major uses of inforwation a more detailed version wiU be foundin Annex 1. The Bank uses different media for each category. Most text-bacedsystems, that address the substantive information needs of Higher-Level staff are stillpaper-based (See Annex 2). The use of automated technology, to date, has beenprimarily to create numerical data bases (often for transaction-based systems,although a few substantive data bases such as FDB and BESD have been developed),and for word processing applications, assisting in the creation and revision ofdocuments. The storage and retrieval of these documents, however, is almost entirelypaper-based.

B. Information Categories

23. Each information category described here supports different userrequirements, and often, different user groups. The information may be generatedfrom many different places inside and outside the Bank and may reach user groupsthrough a variety of different channels.

i Substantive Infomnation for Operational Use

24. The purposes of this typ _f information are to:

o Assist staff in giving policy advice and technical assistance tomember countries;

o Assist with project design and supervision;

o Facilitate cross-country analyses and the sharing of developmentexperiencz among countries;

OZ

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I.~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~........

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o Assist Bank management in setting operational policies anddeveloping strategies; and

o Facilitate global and country economic analyses.

25. This information is used by Higher Level staff in their day-to-day work.Annex 3 contains a brief overview of the information sources used by staff inOperations and PRE, where such information is created and used, and also showscurrent constraints to effective use. Its sources may be internally or externallyproduced materials, including commercially available publications from membercountries and other aid agencies. Often, however, the information is collected in rawform in the course of mission work and by constant data gathering through informalchannels. Much of it, once collected and stored, is available in an organized form andin organized systems, although most is paper-based and resides in text documents.Since this information supports the core business of the Bank, it should receivepriority attentiou.

26. Current practices for storing and retrieving this type of information lead tovarious problems, for example:

O Most of the substantive information in the Bank is in the form oftext, the majority of it received from outside the organization andstored on paper (that is often of poor quality). Central access tothese text-based stores is partly manual. Computerized indexes areoften inadequate for quick retrieval by staff, many of whom rely ontheir own (costly and inefficient) stor.ge and retrieval efforts. TheBank has only recently started to pilot the use of moderntechnologies to automate storage and retrieval processes.

3 Cross-country experiences are often important, some relevantinformation being held in the Operations Complex, some in PRE.There is a need to share it. In addition, when the Bank embarks onnew avenues of development assistance, experience is inevitablylimited and project officers can benefit from information on similarexperiences. The infrastructure of information systems acrosscountries and regions to meet this need is not well developed.

o . large part of the Bane's information acquisition activities involvesinformal communications, without which expectations concerningthe quality and quantity of work could not be met. Reliance on this isinefficient and inadequate. It is costly to devote staff time tosearching for and producing information because the work involvedin accesing it must be re-invested over and over again.

O As noted in para 16, many Higher-Level staff simultaneously sufferfrom inadequate access to information and information overload.They are inundated by papers, documents, reports, and printouts,but lack guidance as to how it should be organized. Many staff haveestablished private data bases to hsip organize information. Many ofthem might have w.der value and their development on commonlints could make them useful for larger numbers of staff.

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u. s2rmal Consmwicatkms

27. Some Bank information must be shared with people outside the Bankincluding Bank clients, other donors, and the pnblic at large. Some of this is designedand produced specifically for external distribution but some is primarily intended forinternal use. The purposes of sharing this type of information are:

. ublic relations;

o Technical assistance in areas of Bank expertise,specially todeveloping countries;

o Influencing the development community at large, includingacademia, NGO's and the media; and

o Informing member countries, other donors, the academiccommunity etc. on the Bank's goals, policies, experience, andactivities.

28. The organizational framework for providing this type of information isfragmented. Although responsibilities for channels of information dissemination--such as the Publications Department- are well established, it is not clear whereinitiatives for the development of new information products should be focused.Consistent with its fragmented organization, systematic knowledge and understandingof the information needs of Bank stakeholders is largely lacking. Similarly, outsideusers' knowledge of the Bank's information sources is limited. Moreover, the Bankhas not yet focussed on the implications of electronic media for purposes of externaldissemination.

aii Internal Communications

29. Some information must be distributed to Bank staff at large includinggeneral communications used to inform staff about the work of the Bank. This tendsto be of an ephemeral nature, but some of the instruments have long-term value, suchas the operational polcy notes and the administrative manual. The purposes of thistype of information are:

o To describe policies, procedures and practices on the work of theBank-;

o To provide information that should be known by everyone onpersonnel and services-related matters; and

o To ensure a good working environment and build understanding andmorale.

30. Most internal Bank organs are weli-known, widely distributed and clearlyenough defined for Bank staff members to easily identify the type of information theycontain. The distribution of some of this information is, however, broad-based anduntargeted. The information is disseminated widely, regardless of whether its

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receivers need to know it at that time or at all. Targeting procedures are mostlymanual

31. Retrieval systems of existing, continuously referenced internalcommunications are also largely manuaL Once a piece of information is distnbuted, itbecomes difficult for Bank staff to access it later (when it may be needed) withoutassistance from specialized staff. Electronic mail, as an instrument of internalcommunicadion at personal and unit levels, has become widespread in the Bank andits potential will be more fully exploited as more applications and information servicesare made available and are tailored to the needs of various user groups.

iv. Twnsacton acdviy infomato

32. Information created in one unit, but required elsewhere to support theexecution of an activity, must move to other units to be further processed. At eachprocessing stage, the information may be verified or modified, further informationmay be added, or actions may be taken on the basis of incoming information. In thissituation there is a sequental nature to the way information is used: the work of oneunit becomes input to the work of another. Information needs are mandatory innature: information must move from one unit to another to allow the conduct ofrequired work and to support institutional processes. Typical examples areinformation processing activities associated with loan disbursements, personnel-related activities, and submissions of travel request.

33. Many of these systems are well-developed. Others --such as theprocurement, travel and personnel systems-- are currently under development.Betause of the decentralized nature of information management in the Bank, thesesystems are the responsibility of the business managers in charge of the transactions.Whenever systems must interface, or must otherwise be linked, conDicts -budgetaryand othewise- may arise which may not be easily resolved.

V. Management Infomataon

34. Managers require information to make sound and timely decisions. Theyrequire informatieni for planning that often originates with actvities outside theirunits which alows them to evaluate r.actions to changes in the environment and toincorporate this knowledge into decisions about their own units. They also needinformation to assist in planning work programs, allocate resources, and foroperational controL This information consists primarily of indicators of the status ofresources and activities (work indicators, project status, budget status, and variousindicators of implementation) within the unit. These requirements can beconceptualized as a pyramid within which different information is required as onemoves up the management ladder. At the top of each complex, APEX reports arenecessary to keep each Senior Vice President informed.

35. For an organization to function coherently and responsively somemanagement information must be transferred vertically --primarily at greater degreesof aggregation- while some must be shared horizontally, i.e., that which will have animpact on the proper functioning of other units in the organizaton. The Bank is noexception. Horizontal sharing is often a mutual arrangement and information is oftentransferred both ways. For example all complexes must receive certain personnel

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information from the PAA complex to assist in humn resource management whilethey, in turn, must provide certain personnel information to PAA. The FinanceComplex needs current information on lending plans and dibursem estimates tohelp plan and anticipate borrowing requirements. Information on technologythroughout the Bank should be available to the PAA Complex and diWbuted toother complexes. PRE must provide policy information to Operations on the basis ofinformation originating in borrowing countries. Management information on Bankactivities must quicldy reach the President, and a subset of that information, such asthe annual budget document, must be presented to the Board.

36. In the past five years, the institution has invested heavily in systems toprovide management information (eg., OPS-MIS in Operations; HRS in PersonnelIDB in Planning and Budgeting). These systems are major accomplishments.Improvements are, however, possible, particularly where greater attention could begiven to serving the information needs of line managers below senior management.The scope of management information may be expanded to include(non-budgetary)performance indicators such as the status of project implementation.

37. These challenges were increased by the Reorganization. More responsibilityand accountability was delegated to line managers, requiring more timely andaccurate information on work programs and resources than before. An APEXreportig system was established to provide summary reporting to each Senior VicePresident. The horizontal flow of management information across complexes alsoneeded improvement. Fnally, continuing pressures to cut costs made it even moreurgent that the Bank enhance its efforts to improve the cost effectiveness of existingsystems, eliminate duplication, and treat information as a strategic resource.

38. Two specific problems with existing systems can be identified. First, withinthe current large-system environment information required by line managers isdifficult to access electronically. Second, horizontal information sharing acrosscomplexes is difficult because existing systems were designed for the verticaltranission of information.

C. Intormatlon Users

39. Each category of information has different though overlapping communitiesof users. Requirements and uses differ for each group; some use all, some only asubset. The following user-groups may be identifiehW

. Bank Mawagers

40. Managers operate at different levels: Corporate management includes thePresident, the Executive Board, and the Senior Vice Presidents. Senior Managers areVice Presidents and Directors. Line Managers are Diision and Unit Chiefs. At themore senior levels, management information should be highly aggregated, pre-analyzed and synthesized. At the level of line managers, a lot of information is gearedto the management of work programs and resources, often reqWring analysis andaggregation from raw data produced by transaction systems.

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ii. Higher level and Suppot-Level Staff

4L H4igher-Level and Support-Level staff enae in widely disparate activitieswith very different information needs. As informnation teconology becomes integral tothe production and communication processes of Higher-Level staff, the respectiveroles of Higher-Level and Support-Level staff will change. Support staff willincreasingly take on more assistant-type functions and will carry out datamanipulations and data preparation to support analysis and interpretation by Higher-Level staff. A continuing distinction between Higher- and Support-level staff willhowever be the level of analysis and interpretation of the data.

42. Although the information needs of Higher-Level staff are comparable interms of the level of analysis required, both Higher-Level and Support staff arelinked across along functional (sector) lines in horizontal communites. Some softwareapplications have been used to meet a broadly shared need for analytical support;User groups for these applications that cut across sectors and Complexes have alsobeen created.

a Users OuWts e Bank

43. A great deal of information is shared and disseminated among the Bank'sstakeholders. Similarly, the Bank's publications program ensures that information isdisseminated to the public at large. Currently, most of it is in text form on paper. Thismay continue to be the preferred mechanism given the unequal state of technologicaldevelopment of many of the Bankes clients, but in due course the role of electronicmedia will dearly grow.

D. Conclusion

44. Like many other organizations, the Bank has found it difficult to translateobjectives for information management for all information categories into practiAe inthe absence of continuous attention from aU managerial levels and an adequate policyframework. Various levels of deficiency exist for different information categories.Chart 2 gives a schematic overview of the current effectiveness of the provision ofdifferent types of information in the Bank Fnally, there are some overall problemsrelated to providing for shared access to and use of information.

45. Information has been shared and transferred from one part of the Bank toanother from its early days and many manual mechanisms have been designed for itsmanagement. There are document-production and distribution procedures whichallow information in documents to be shared for both transaction and/or informationpurposes. There are multiple-copy paper forms to initiate personnel, procurement,travel, and other actions. And there are centralized storage and retrieval systems thatprovide access to Bank records. The issue of information sharing, however, hasrecently become more acute. Automated systems provide the possibility of broaderand more timely access. They also provide an opportunity to review past activities witha view to designing better systems. Fnaly, the need for shared access and use ofinformation is so pervasive that ad-hoc arangements, and costly a- unreliable formsof information sharing are an inevitable outcome in the absence of a formalframeworL

Chart 2. Current Status of Information Provision in the Bank

Information Management Institutional Frameurwk Available Resources

SUBSTANTIVE INFORMATION

Mxy nfoweds rcnainl mdwdled or 'Rthised vor lqnent ysulms forsaff members use ad-hoc am ngemefs.

infapiorndiy does ra exisi User-bosed commrittae for specific sEsas eisd Nr indevmse for pment sysiwsfo

Sea r a&¶m PM cie ,g j POssbl advantages of new technolon have._ _ _Soe _ _ _ _ts_ _ _ _ _f_the _eed. _ ___ _ _ __ not been fullly explared.

EXTERNAL COMMUNICATIONS

owid Use'w decfOmkinf Berk nfo.natis my lmited and deficdL -W o&MAO8 dxWd be

etch of dw B=VscH I Umeof Psdatnt F edoeydam f onlde.

-INTRNAL COMMUNICATIONS.I_t reof tbls lnfsns lead to r

Suna inenal Bank meh_nais ans wl known Use of rnewu k n eg. em it s uinMOdidnl

axist ih lnfxoatsu nadw8 staff tooa ndd distoste

Fr :: . ¢ . :;TRANSACIION ACnIVrrY INFORMAT1ON ::

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MANAGEMENTiNFORMATIONO

b 1 rn bem sed1i No sysum of ceficesib ble_ imd s ; _t soh | |

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IV. Constraints

46. The Bank, like all modern organizations, faces several constraints inmana;ing information resources. Consensus as to which constraints are most relevantto the Bans business funetions are a precondition of strategies to alleviate them.

47. The constraints faced by the Bank have, to some extent, been determincdby the global technological environment. Until recently, information managementactivities --especially those that are electronically based- have been dominated byapplications deaing with numbers rather than text and by a centralized, mainframe,outlook Limited attei.tion was given to the needs of staff and line managers at largeor to the benefits of information products. The emphasis was on systems developmentand their costs. Until the widespread implementation of individual workstationsbecame possible, these trends were evident in most organizations using organizationaldata bases. The specific needs of the Bank include the following;

(1) A framework to govern directions and actions in infornmationmanagement. Until the recent endorsement of the strategy paper oninformation management and technology, the 1983 IRM strategywas the formal basis for information management in the Bank. Inthe late 1980s as the environment and the technology changed thisdocument gradually became less relevant and more difficult tointerpret and implement.

(2) Ihe basic tools and standards to ensuu infomawon shanng quaty,security, and flexibility. Work on an overall, Bank-wide, dataarchitecture for the different information categories, allowingidentification, mapping, and the establishment of linkages betweensystems has recently begun. It is slowly leading to institutionalpolicies and coordination on data standards and data flows to ensureaccess and to facilitate interfaces. Agreed upon data definitions andstandards are also being developed. In the absence of agreement onthe use of such tools and procedures, systems and data bases willliHly remain fragmented and narrowly targeted to fewer users thancould be accommodated under more disciplined and institutionally-supported processes.

(3) A technology architecture that recogmizes the bnportance of text-basedinformation. Exploiting technological innovations to support theBank's information requirements requires the acquisition and use ofthese technologies within the framework of an overall architecture.Such a framework was developed in FY88-89 to guide theacquisition of hardware and software. It recognizes that most of theBank's information is in text form on paper and that informationreaches Bank staff through various media: electronic, paper, voice,and image. The technological possibilities for integrating andaccessing information from these media, while they may not becurrently economic, must be examined.

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(4) Capalities and attitudes to absorb change.

48. Approaches to information management tend to be Complex-bound, top-down driven, process-oriented and ith limited attention to Bank-wide needs.

49. Several aspects of the Bank's culture work against effective informationmanagement:

o Staff have an ad-hoc approach to infomation managment. Given thenature of the Bank's work information is often gathered throughmissions, word-of-mouth and informal arrangements, each individualrelying on contacts with others. There is some reluctance to usesystematically organized information stores. Information collectorsand often unwilling to organize their information to accommodateothers.

o Infonautn ui often used in turf-budng. A desire for autonomy canlead to information being closely guarded. If sharng of informationis perceived to diminish one's authority, there are negative incentivesto give access to information to others.

O Information is often regarded as private property. Ownership ofinformation is often jealously guarded, partly out of fear *f losingvaluable documents: information is not usually viewed asinstitutional property.

50. In the Bank, as in many knowledge-based institutions, there is resistance tothe changes inherent in introducing information technology. The Action ResearchProject in 1986-1987, dearly indicated the need to improve the change managementprocess, associated wth investment in information technology.

The Bank currently has a large cadre of professionals skilled in varioustypes of information technology and systems development. However, an organizationadopting and using information technology to carry out large and integral parts of itsbusiness, must also develop a broader cadre of information facihitators' trained andeducated in information science. They are currently in lmited supply. As a result, theinformation requirements of Bank staff are insufficiently known by informationproviders. Most staff and managers receive inadequate education in informationmanagement and are inadequately prepared to epioit the potential of informationtechnology. Moreover, the Bank's information professionals are sometimes notsufficiently knowledgeable about its business processes to make meaningfulinformation management decisions.

(5) Appopiate iwncne and resoures.

5L The Bank needs instituional mechanisms and incentives to foster effectiveinformation management. Staff are not given incentives to deal with information toaddress institutional as well as local needs. Some information is provided on aninstitutional basis but the institutional cost of meeting shared information needs isoften seen as a subsidy rather than as a strategic investment. The Bank does not

17

facilitate this process, through coordinating mechanisms, incentives, cost recoveyprocedures, or budget practices on information systems. Progress in informationsharing also depends on the development of effective information security policies andprocedures.

52. Fmancial resources devoted to systems and data base development forinformation sharing may not adequately reflect stated priorities for informationmanagement. Information sharing involves significant up-front investment inplanning, experimentation, systems development, coordination, and training.Experimentation with lower-cost solutions, with promising new technologies fornetworking and information storage and retrieval and with Computer-Aided SoftwareEngineeing (CASE) tools could reduce these constraints. In particular, resources areneeded for information systems development and sharing within and amongOperations and PRE in support of professional staff, policy analysis, and technicalassistance.

V. Strategy and Policy Framework

53. The preceding analysis of major information categories and constraints totheir effective management in the Bank suggests some elements of an institutionalstrategy and policy framework for information management. These are: (1)formulating institutional priorities for the management of different categories ofinformation; (2) formulating data frameworks, standards and policies; (3) developinga flexinble technology architecture to support institutional strategies for informationmanagement, (4) developing staff and management capabilities to absorb change; and(5) designing appropriate incentives and resource allocation processes.

A. Instttional Priorities

54. A basic element of the framework is to develop strategies tailored to thespecific characteristics and problems of different information categories. Whilebuilding on past investments and lessons of experience, these strategies should beforward looking and should anticipate that, in future, the Bank will increasingly shareits information with borrowers and the development community. These strategiesshould also reflect and reinforce client orientation and decentralized decision making.And they should strike an appropriate balance between top-down guidance andbottom-up innovation, between up-front planning and design, and continuousadaptation and experimentation.

55. This fiamework reflects shifts:

o From regarding the payoff of improved information managementand information technology limited to efficiency and automation, toan expanded view of potential benefits and opportunities thatcontribute to organizational effectiveness, responsiveness, andcreativity, and facilitate the development of new products;

18

o From looking at information and information technology asoverhead costs and administrative expense to be minimized, toconsidering them as strategic a&sets, to be developed, maintained,and exploited;

o From a primarily inward orientation to meet the localized needs of asingle administrative unit, to a more outward orientation thatencourages informaticn sharing and meeting the needs of differentbofrowers;

o From a focus on applications for administrative and transaction-oriented purposes to one that also meets the needs for substantiveinformation of Higher Level staff engaged in the core businesses ofthe Bank;

o From development of new monolithic systems to greater emphasison decentralized systems and on making cwrrent and future systemsand databases more accessible and user friendly,

o From an emphasis on the acquisition of hardware, software and data,to an emphasis on education, training, and end user support tomanage and maxmize the benefits from investments in technologyand information resources;

o From a primary focus on numerical data bases to increasedinvestment and support for text-based systems; and

o From a centralized mainframe environment to an environment inwhich personal computers play an increasing role in informationmanagement.

, A Strfiatfo Mwgng Substanive Infomwtaon

56. This categoy of information is primarily concerned with data andinformation used by Higher-Level staff in their worL Although it covers all Higher-Level staff (including for instance, financial traders), the focus should be primarily oninformation for analytic work in Operations and PRE, since this is the category withthe highest payoff and that which, so far, has been least attended to.

57. Most of this information is now stored and retrieved in two ways: numericdata bases (such as BESD and FDB) and text-based documents. The overwhelmingmajority of it is in text form, such as economic and sector reports, appraisal reports,policy papers, internal memoranda, operational manuals, and procurementguidelines.The textual characteristic of this type of information has strategicimplications for its management. In developing a strategy, the degree of centralizationor decentralization will be strongly influenced by the specific requirements andcharacteristics of text-based systems and by the capabilities and limitations of newtechnologies that can support text-based systems. An additional requirement is theneed to maintain the Bank's institutional memory. This points to some degree ofcenalized, institutionaly-mandated storage and retrieval systems. At the same time,local information needs may require a fairly customized approach towards

19

information storage and retrieval. A balance must be struck between theserequiements, which must be reflected in organizational control, resource allocation,and ognizational location and ownership.

58A Full-scale automation of the Bank's paper-based systems would, in the nearterm, be prohibitvely epensive, gien the current state of the technology. Meanwhile,primary records will most lkely contnue to be in paper form. Improved managementof these paper records, kept current, using primarily manual, approaches to filing andretieva, and electronic document management procedures, are increasinly needed.

59. Although the process of understanding substantive informationrequirements in different organizational units is ongoing, there are likely to be severalthrusts to a strategy for managing this type of information. First, it should address theneed of staff to exploit the potential benefits of information resources and technology.This requires improved analytical tools; improved access to exdsting substantive databases; improved user interfaces for "computer-shy staff, complex search and retrievalfrom electronic databases; increased availability of portable (laptop) computers;increased awareness of on-line search capabilites in Bank libraries; and other meansto enhance staff skiUls in -anaging their own information resources and accessingthose of the Bank. Improved analytical tools are important to improving theproductivity of professional staff and the qualit of the Bank's analytical work andpolicy advice. They can also provide borrowers with took to build their own analyticalcap abil it ics.

60. Second, the development of substantive text databases providing electronicstorage and retrieval of the full text of Bank documents is likely to become animportant requirement. As a starting point, a pilot database covering the most widelyneeded internally-generated documents such as the operational manuals has beendeveloped. At later stages, these text bases wiU incorporate images of aU theimportant externally generated documents used by Bank staff.

6L Third, it is unlikely any single iniative or global system would be able tomeet the different information requirements of all Higher-Level staff. Therefore, itwill be important to learn about these needs and how to meet them in anexperimental and incremental mode, through pilot projects, "modelr divisions, and thework of innovative staff. This approach could be complemented by other efforts toestablish data standards and data modeling, and thus facTitate communication amongthe emerging data bases and appuications.

62. Fourth, the Country Departments (CD' are becoming the focus ofinformation inputs and sharing. The 1987 Reorganization higlighted the need toprotect country specific memory and experience in a continuing relationship withborrowers. Iniiatves fer enhancing country focus and client understanding and forimproving the Bank's mewory about borrowers and their institutions must beencouraged.

63. Fially, the 1987 Reorganization also led to some fragmentation of theBank's sectoral and technical staff and other communities with a shared professionalinterest that had developed over time. Similarly, it separated the Operational andPolicy staff into two Complexes, between which there was less direct horizontalinformation (document) flows than before. The roles of the Technical Department

20

(TD) in Operations and PRE require improved professional interactions andinformation sharing with the CDs. Initiatives to facilitate the development ofprofessional networks, including, among others, electronic means for sharing ideasand professional interests between work teams and managerial units and to organizethe information built around the CDs so as to facilitate cross-country experience andaggregations for Bank analysis, should be supported. So should the development ofinformation systems to track ongoing substantive development assistance work inOperations in support of research, policy and strategy work in PRE and Operations.

u. Extemal Communications

64. External conmmunication is critical to an organization with global coveragewhose products require continuous dialogue, intensive involvement, and sharedunderstanding with clients. Recent advances in information technology offerinteresting opportunities to strengthen the Bank's clients relations and to improve thetiming of Bank decisions, to improve Bank responses to government requests, and tooffer continuous support for project implementation and technical assistance. Thestrategic use of information technology also provides an opportunity to significantlyalter how the Bank's work is done, and to promote true partnership. Similarly,communication technologies can profoundly impact the Bank's catalytic role in aidcoordination, and improve its image and external relations through providinginformation to targeted audiences.

65. The Bank's value-added is mainly derived from organizing and transformingraw data and separate information inputs into structured information and knowledgeto fadlitate and assist borrowers in their development efforts. Greater disseminationof this information to borrowers, through direct access to certified data bases andtimely electronic communications (and possibly later through the design of newinformation products and services that exploit new technologies for communicationand storage and retrieval) should be explored. The Bank's approach to externaldissemination will be generally guided by the Diredive on Disclosure of Information(Administrative Manual Statement, 1.10). Within this framework, a cautious approachis cailed for, constrained by the need for security and confidentiality, data integrityand consistency.

66. Several major initiatives are underway to link Resident Missions to BankHeadquarters through electronic mail and to provide major hubs to support globaltelecommunications. Capacity expansion is needed to respond to the changingdemands of the Bank's work with its borrowers. The development of the Bank'sexternal communications should focus first on the information and communicationsneeds of Resident Missions in line with the Bank's intention to enhance the role of itsfield offices. It should also allow for the gradual expansion of this network to the coreministries of borrowers and a variety of entities and organizations.

67. This implies that the Bank will increasingly become a wknowledge'institution rather than a financial or knowledge-based institution. Accordingly, in thelonger term, the Bank could become a major hub for information and knowledgegeneration and dissemination, connected through various information networks withborrowers, aid agencies, donors, media, financial institutions, suppliers, consultants,consultative groups, universities and NGOs.

21

ML Inemal Commudcaons

68. Effective decision making in a decentralized framework requires intensiveinternal borizontal and vertical communications. Internal communication is necessaryto casure and sustain institutional change and adaptation. It is important in informingand motivating staff and in making the Bank and its activities more meaningful tointernal stakeholdes

69. The introduction of new internal communications technologies (such aselectronic and voice mail) could greatly facilitate communications acrossorganizationl boundaries Where ext._nsively used, as in Fiance and more retlyOperations and Administration, electronic mail has contributed to informalcommunication and the development of commaunities of professionals who can shareideas easily and quickdy with other staff. Some of these technologies may requir. thedevelopment of and adherence to new protocols and exchange arrangements amongstaff. Care should be exercised not to overly formalize or tightly control theseinformal and non-hierarchical communication tools. These networks should becreatively used to flatten the organization, facilitate teamwork, promote participation,open commuications, and encourage the free flow of ideas.

70. New technologies could be used in improving the provision of this type ofinformation. Applications should accomplish one or more of the following aims: toprovide information faster, to improve search and retrieval access to those who needit to reduce paper transfer and resulting processng, retrieval and storage problems;and to provide information to a targeted audience.

7L The overall vision of internal communications in the future is one thatempowers individuals and work groups, facilitates team work and interaction amongprofessionals and w,dens the span of communication for managers. The experience ofsome leading-edge organizations suggests information technology could be used toinduce fundamental transformations in work processes, particularly through the use ofinteractive design tools, instantaneous electronic communication, improvedpresentations, electronic conferencing, and other means of information sharing. Ingeneral, an information management strategy for the Bank could employ thesecapabilities to transform bureaucratic and hierarchical relationships and structuresinto more adaptive, and flexible networks.

iv. Trnsac*in InfomJion

72. Transaction-based systems are costly and relatively inflexible. Their designimplementation and operation should thus be cost-efficient. These systems are drivenby the nature of the transactions they accomplish and the work processes they unpactThey have a pervasive effect on adminstrative proceses and on local managementinformation systems that interface with and draw on them.

73. Decentralization requires that many inputs into these systems bedecentralized, requiring systems d4.sis that eliminate re-keying and permit thecapture and manipulation of inputs at decentralized entry points from differentorganizatioal units

22

74. A strategy for the evolution of traasaction informaton ystems should alsotake account of the fact that some of the information derived from processing thesetransactions will be transmitted into managemnt information systems and selectivelyprovided to borrowers. If, in future, field offices take on more responsibilities forprocurement and disbursement, transaction systems may be further decentralized andinputs captured in the field.

V. MWament Inforbmdon

75. The development of management information should be guided by theprinciples that information management is an integral part of line managementresponsibility and that the design of information systems should sapport decentralizedresponsibility and accountability. At the same time, line managers must provideaccur&te and timely information at appropriate levels of aggregation about their unitsneeded by senior line managers and managers of institutional functions, whilesuccesivly higher level managers must also be assured that aggregated informationis grounded in detailed data and that the data are certified by local line managers.Local system managers should also be responsive to the needs of others (across unitsand Complexes) for information sharing.

76. In line with these principles, a strategy for the federated structure ofmanagemen; information systems and data bases is being established. It strikes abalance between overall economy for the institution through the use of uniformstandards in cRtical areas and central institutional systems, and flexibility in tailoringmanaement information systems to local needs and different levels of management.It builds on existing data bases and systems, modified as necessary, and ensureslinkages are built to share data among them. The main elements of a federated MISstructure are: APEX reports in all complexes, Complex-wide MIS's, the Controllers'report, the institutional budget system, the (decentralized) budget accounting system,and central transaction-based systems (such as personnel, payroll, travel, andprocurement).

B. Data Frameworks, Standards and Policies

77. To guide and support the implementation of these strategies, it is essentialto have consistent and common data frameworks ani standards, systems developmentmethodologies, data administration policies and security policies. Consistent datadefinitions must be set out to describe each information ;tem to be shared ortransferred from one system to another and the implications of its use (with regard totype of data, updating frequency, certification, and the like). Preparation of thesedefinitions should be guided by institutional data frameworks and data standardsdesigned to ensure information needs are met in an economic way wherever theyoccur in the institution. The existence of such standards or guidelines should increase,rather than decrease, the flexbility with which information tools can be used, much asthe standard page size has greatly increased the ease with which we use and transmitphotocopies. Data administration, data modeling data dictionaries standard datattansmission formats, data certification and qua'ty assurance are all functions ofincreasing Bank-vide tmportance because they provide the infrastructure on which to

23

build reliable and accurate information, integrated systems, effective communicationand information sAari%2

78. Informafon systems planning (or information architecture planning) is amajor tool for implementing these strategies. Systems or architectural planningmethodologies have proven useful in provtding a long-term niew of relationships andinter-dependencies among information areas, data baser and systems in largeorganizations. This is important in guiding the integration of systems and data bases,in reducing data redundancies and inconsistencies, and in setting priorities for andphasing of systems development activities. The Bank has, so far, applied the BusinessSystems Planning (BSP) methodology in several complexes and has incorporated theinsights and results in various downstream activities, particularly in the FmanceComplex. Other objectives of the methodology have proven elusive, in particular, inthe area of information for managers and substantive information needed by HigherLevel staff. Automated tools (Computer-Aided Software Engineering: CASE, seepara 82) have more recently become available and have been adapted to the BSPmethodology to make it more flexible and useful. Other new and promisingmethodologies -oriented towards tighter integration with business needs- such as theCritical Success Factors method and the competitive advantage framework have alsoemerged. Large and complex organizations have learned that different systemsplanning methodologies are best suited to address different issues and that a flexibleand edlectic approach, using a mix of planning tools, is the most realistic and effectivemode of planning, provided overall consistency is maintained.

79. Similarly, the Bank should ensure each information system is developedusing methodologies and processes that lead to well-defined requirements,incorporating both the needs of all identified users and uses and the quality-controlmeasures necessary fc;. good system design. To ensure this, a Bankwide approach toevaluating, managing and reviewing systems development is needed. A systemsdevelopment policy including common basic requirements to be followed indeveloping and maintaining information systems and mechanisms to establishaccuntability for satisfactory system performance is therefore being developed

80. lnformadon securRy policies have been developed to support increasingemphasis on information sharing. The growing investments of the Bank in computingand communication and the increasing requests by borrowers and other aid agenciesfor sharing Bank information and data bases have placed further demands on theBank to develop information security measures to protect information fromunauthorized access. These policies have been developed in coordination with thedevelopment of other data and systems development policies. The InformationSeity Committee guides the development of these policies.

81. The process of establishing data standards and formulating policies to guidesystems development and information security will greatly enhance knowledge of theinformation needs of the Bank and its borrowers and strengthen the means for

2/ 'Data Certification is a process preceding dissemination of data to a specifiedaudience during which line managers who own the data review and appre itsintegrity and its suitability for the intended recipients, based on establishedstandards.!

24

de.eloping flexible and responsive information architectures. As these standards andpolicies are put in place, the Bank will benefit from having a cadre of educatedsystems staff throughout the organization who understand the same language andhave a clear, business-driven, picture of how its systems are designed and developed.

82. Automated systems engineering (CASE) tools promise to substantiallyincrease the productivity of systems planning, development and maintenanceactivities, as well as the relevance and value added of data planning and modeling,data standardization and data administration activities. By automating and integratingmany aspects of these labor-intensive activities, systems developers and dataadministrators could adopt more disciplined and reliable methodologies, interactmore effectively with users, readily adapt systems and databases to meet changingneeds, and ensure appropriate information sharing and consistency among variouscomplexes. The Bank has recently acquired CASE tools from Knowledgeware and hasbegun to exploit their potential. The Bank strategy is to use these tools in developingmajor systems and for the documentation and improvement of existing systemswhenever possible. Another thrust is to use CASE tools to create an automatedencyclopedia to be used as a central repository of knowledge about data entities andrelationships and thus facilitate data standardization and sharing.

C. A Technology Architecture to Support InformationStrategies

83. With the advent of workstation-based decentralized office technology, it hasbecome increasingly possible to manage the information environment of knowledgeworkers through the integration of different technologies at the local workstation.Figure 1 shows the emerging convergence of different technologies on the desk-topinformation system to enable access to information maintained and transmitted indifferent formats and channels. The trend towards integration is already underway,greatly facilitating information sharing and access. This longer term vision of desk-topbased convergence of access to information and information technology does notassume that all information will reside locally, rather that the desk-top workstationwill become a tool that, over time, will give access to local and central i iformation indifferent formats.

84. The circle in FIgure 1 is divided into five slices denoting five major mediaused to convey information: data, text, image, video and voice. In the outer part of thecircle the technologies are listed that were used until about a generation ago (and arein use even today), such as calculators, typewriters and telephones. The middle circledenotes technologies that have become available in the last 10-15 years, and are usedincreasingly in organizational information management, such as word processing andPABX. The inner circle shows technologies that have become available in the last fewyears or are becoming available now, through which information, in various media,converges on a single desk top system. At this level, there is an increasing blurring offunctions. Software packages can do graphics, computatic.ds, and text processing ondesk-top workstations. It will become increasingly possible to receive, manipulate,store, retrieve and send information from a single desk-top workstation a: I '.isubstitute or combine media containing the same information. More proc. -Angpower will be devoted to making technology user-friendly and easy for Higher-Level

25

Figure 1. Convergence of Technologies on PC-basedWorkstations

WMAGE

h /X/ / / N s~~~~~~Iocessi A\WI I W s0EStEt \ \\ \ t s~~~~~~~nIf

| 1 3 U A <°P ~A l

i,, P..1<

\ teshX OSsOSs / /4f

\S\/X/~~~~~~~~~~~~~~~~NIq*t\ - /402A

26

staff and managers to master. This wil further accelerate the process of technologicaldiffuin

85. A sigificant amount of the Bank's information is still in documents, ie, onpaper. Paper based information systems are, as yet, separate from electronicmformation systems. There are some lnkages, of course, from electronic informationto paper based information. But most electronicaly produced documents are printedand stored on paper. Technology equipped to deal with the long-term storage andretrieval of electronic documents in large volumes is still expensive and difficult touse. Voice communication is still through a telephone instunment separate from datacommunication, and video is not yet used for day-to-day operation, except for securitysystems. There are differences between the technology products from differentvendors installed in the Bank, with the result that information available in differenttechnologies, such as word processors, mainframes or mmis, cannot be accessed fromthe same desk-top workstation. The trend, however, is toward connectivity betweenproducts from different vendors on the basis of international and de facto industrystandards. Already the same wiring is being used to deliver information in voice, data,text and image to most Bank-owned buildings.

86. Given the prospect of continuously evolving technology, successfulinformation management will require the marriage of various media, paricularly forpaper-based and electronic information flows. One of the chalenges wiU be staffadaptation to becoming as comfortable with the use of electronic documents as withpaper documents. There wil be a need for education to enable staff to accept fullythat an electronic document carries authority. The Bank will also need to adapt to theinformation technologies used by those with whom it communicates, for example,borrowers. nts, suppliers, donors, and consultants.

D. Capabilities and Attitudes to Exploiting InformationTechnology and to Absorb Change

87. Further development of the strategies, policies and standards outlinedabove will require continuous Bankwide coordination. In turn, this will demandattention to and engagement of the structure for governing information andtechnology management put in place after the 1987 Reorganization. Another criticalfactor in enhancing institutional capabilities to absorb and exploit informationtechnology will be to secure managerial understanding, support and commitment forinformation management. It is increasingly recognized that the management ofinformation in the Bank requires involvement and input from management at alllevels including;

o Adherence to common institutional goals regarding the role ofinformation in serving the Bank's clients and improving institutionalperformance;

o Establishing priorities with regard to information provision, planningfor information management, the allocation of resources to theseactivities, and overseeing the implementation of informationprovision actvitis; and

27

o A visible commitment, invovig managers' attention and time.

88. For most Bank managers at all levels, a formal and informal educationprocess in information management concepts, issues, and solutions will be importnLine managers must become more famuiiar th both the potentias and pitfalls ofinformation technology and comfortable with and committed to its effectivemanagement In this context, a specal training program for line managers has beenjointly developed by Personnel and ITF.

89. Within the information management area, appropriate attention must begiven to the development of human resources and the diffusion of best practices andsuccessful adaptations Education and traiing is a key to success in the age of thepersonal computer. A holistic view of the workplace, where the use Of informationand information technology is viewed as an integral part of carrying out the Bank'swork, is necessary to effectively exploiting the potential benefits of informationtechnology. The finding of the ARP, 3 emphasized that investment in technologymust be matched with human investment. It also increased our understanding of the

t ways technology changes the work environment and the nature of the work itselfThese insights have important implications for integrating human factors ininformation planning and for staff and management training. To maxmize thebenefits of information techmology, organizational and process changes are necessary.Accordingly, a key element of the strategy is to provide support for organizationaladaptation and for the diffusion of succesful experience within the Bank. The Bank'shuman resource strategy must also take account of the need to change the skldl profileof managers, Higher-Level staff, and Support staff, to accommodate and exploit thechang information and information technology environments.

90. There is also a need to build a cadre of information professionals, and todesign career streams and professional development programs for them. Theseinformation experts must proactively seek to facilitate information provsion, linkappropriate information support to the business process at hand and develop hybridskils in information science and technology and substantive knowledge of the mainbusinesses of the Bank. In this process, the emphasis should not be primarily onrecruitment of new staff members -althougt attention in flling future vacancies couldbe given to candidates with appropriate skills- but on the education and traiDing ofprofessionals in existing and related functions.

E. Incentives and Resources

9L Incentives that bring congruence to costs and benefits, thus encouraginggood information management practices, are necessary. A long-standing information-sharing practice in the Bank is bilatera negotiation, where a perception of mutualbenefit permits both parties to come to a satisfactory agreement. As indicated earlier,information management practices are influenced strongly by organizational culture.Such practices could be changed through incentives that might outweigh some ofthose cultural values. Additional incentives that could be ivated are those of aneconomic nature and those involving institutional rewards. Compensation for efforts

./ ARP: Action Research Project, 1986.

28

to organize information for sharng could be offered to units that provide informationthrough chargebaek mechanisms or through institutional resource allocation. Forimportant information areas, new or restructured units whose primary mission isinformation management could be organized. Reward incentives could be extended tostaff members who contribute to improved information management. This wouldrequire an objective set of criteria identifying information management behavior.These same criteria could be used to allocate rewards in the performance reviewprocess for staff members who have demonstrated an institutional perspectivetowards information issues. In developing these incentives, the need for thediversification of rewards must be recognized: managers are most likely to bemotivated by institution-oriented incentives, Higher-Level staff perhaps by work-oriented incentives and junior professional staff by career-oriented approaches.

92. Developing information systems so that they provide shared access andshared use of information, almost always imposes additional costs on the unitresponsible for development even though the net cost to the institution may be less.These (often) additional costs are disincentives to information sharing. Budgetpractices that evolved before information technology became widespread, may alsocreate impediments. Ideally, mechanisms could be established so that developmentcosts would be shared equitably among users. Often, the associated costs are notsolely monetary, the time spent in reaching joint agreements with other units and thepotential compromises and less-than-optimal solutions that must be found to satisfyseveral different needs, may weigh more heavily than monetary costs. These non-monetary c *sts are less easy to shift.

93. Future work should give priority to the development of incentives for.

o Information systems development that incorporates design featuresthat reflect manifold needs and provide shared access toinformation;

o Providing information derived from privately collected data toshared or common information stores; and

o Experimentation and innovation in systems, information productsand services in support of policy advice, technical assistance, aidcoordination, and other information-intensive development serviceswith potential for Bank-wide replicability.

94. The resources required to reorient, develop, and maintain informationsystems will be substantial. Pressures are building in various parts of the Bank todevelop systems for all categories of information to meet local needs. If the past canbe used as a guide, the Bank must channel resources for information systemsdevelopment, operation and maintenance to reflect institutional priorities whilemeeting local needs and ensuring resources are not unduly biased by pastcommitments. In particular, the resource allocation process should give higherpriority than in the past to the development of substantive infoxmation for HigherLevel staff, both for productivity enhancetr ent and innovative and oualitativeimprovement in Bank services to borrowers.

AlIEX 1Overview of the Bank's Information Environment

Information Use

Business Function Supported UsersCategories of Use Major Instruments Policy Develop. Financ. Admin. Support E L Line Senior Execut. Outside

_____________,______________ l Work AAssist. ssist. port Staff Staff Managers Managers Board Users

Substantive Private, divisional and departmenta x x x xInformation for document collections and data bases x x I sOperational Use (from Bank missions x x x x xextesnal and Country consultations x x x x x xinternal sources) Bank documents x x x x x(through formal and Meetings x x x x x I I I xinfomal channels) Internal consultations among staff x x x x x x x s

Library network x x x x x xRecords centers and Archives x x x x x xData basas and data collections(e.6, x x x x xBESD, Country-risk analysis data, xCountry credit-worthiness, I x x x xCommodity Forecasts) x x x x ISeminars x x

___________________ |Training Courses x x x

External Bank staff acting as technical x x x xComnunications assistance

Bank publications (e.g. Annual x xReport, WDR, Debt Tables,Bank Atlas) xDatabases for public use x x x_External affairs staff members - x I - x

Internal Internal organs (phone book, x | x x xCoemunications Weekly Bulletin, Bank's World)

Electronic mail x x x x xFYI and desk-to-desk distribution x x x x IManuals and issuances x x x x_Grapevine and rumor mill x x x x x x

Transaction Activity Forms program x x xInformation Parts of the MIS systems (travel x x x

requests, administrative budgets)aRs x x xOAS x x xMedical Records System x x xChargeback systems x x xLoan Disbursement Systems x x x x ,

Management Information Summary output of transactionsystems (e.g.Loan Disbursements,Chargeback, BRS)Apex reportsAdministrative policy work

Annex 2Overview of the Bank's Information Environment

Information Characteristics

Information Categories Major Instruments Typical Examples Fora Channel Medium

Substantive Information Bank missions Appraisal mission Text, data Formal Oral, paper, electronic

(from external and Missions to collect data for TXt, data ormal Oral, paper. electronic

internal sources) economic and sector work(through formal and Country consultations Text Informal Oral

informal channels) lBnk document Projects reports Text Formal Paper (storage)conomic and sector reporta Text Formal Paper (storage)

Private and divisional document elves in HL offices Text Informal Papercollections and data bases Environmental databases Text Formal Electronic

Divisional or departmental Text, data Formal Electronicproject monitoring databases

Or8anized divisional document ext, data Foral Papercollections

Internal consultations among stat Text Informal Oral

Library network Joint Library TeaL, data ormal Paper, electronicSectoral Library Text, data Formal Paper, electronic

Records centers and Archives Regional Information Centers Text. data ormal PaperData bases and data collections BESD at4 Formal Electronic

Country-risk analysis data Data Formal ElectronicCoumtry credit-worthiness Data Formal ElectronicCommodity forecasts ata Formal Electronic

Seminars IED seminars ext, data Formal Oral, paper

Srainins Courses EDI training courses Text, data Formal |Oral. aper

External CompAnications Bank publications Annual Report ext, date Formal PaperWDR Text, date Formal Paper

rld Bank Atlas Data Formal Paper

Databases for public use rld Tables Data Formal Paperxternal affairs staff members Text Informal Oral

Bank staff acting as tecbnical ext Informal Oral

assistance _ | _

Internal Cmamunications Internal organs Phone book Data Formal Paper, electronicWeekly Bulletin Text Formal Paper, electronicBank's World Text Formal Paper

Electronic mail All-in-One Text Informal ElectronicFYI and desk-to-desk distribution Operational Manual Text Formal Paper

Manuals and Issuances Personnel Manual Text Formal PaperPolicy Notes Text Formal Paper

_rapevine and rumor mail IText Informal Oral

Transaction Activity Forms program Perforance Review Text Formal PaperInformation Requisitions Data Formal Paper

Parts of the MIS systems OPS-MIB travel requesta Data Formal ElectronicOPS-MIS administrative budget Dat Formal Electronic

moduleRS Data Formal |Electronic

OAS Data Foral ElectronicMedical Records System Text, data Formal lectronic

Chargeback systems ITF MIS Data Formal Electronic|Loan Disbursement System Data Formal lectronic

Anex 2

Page 2

Information Categories Major Instrmuents Typical Examples Form mCannel edium

Management Information Surmmary output of transaction APEX reports Text, data Formal Paper

systems HRS output tables Data Formal Paper, electronicCIS reports Data Formal Paper, electronic

MIS output reports OPS-MIS reports Data Formal Paper. electornicInternal Bank policy work Policy papers Text Formal Paper

Annex 3

Information Support For Higher Level Staff in Operations and PRE

Ioformation Sources Created By Used By Problems end Difficulties

Policies and guidelines PRE and Central Operations OMSs and OPNs on adjustment No effective means for quicklyDepartment. & investment lending by new searching Bank policy* Available in self service cabinets staff to learn how Bank operates. guidelines; COD now issuingH Bldg. 4th floor. new manual

Country Strategy and Country Operating Divisions. Operations (for planning & No easy method for quick accessprogram documents * Original with COD; reference monitoring country economic to strategy & program documents

with ISCs. & sector work program, lending produced within own departmentCAM stored in the OPSMIS. operations & supervision work). Staff unaware of contents of

strategic documents.

Lending documents COD (President's report for PRE (uses lending document Operations - strong need for bettersectoral adjustment lending and for cross-country reviews of help in finding what the Bank hasmemoranda of the President. & sectoral experience). learned; PRE also with respect tostaff appraisal reports for Operations (uses them as their cross-country reviews. Toolsinvestment lending. background information for used -staff develops a different* Gray and buff covers in ISC; yellow lending and sector work). program for the same methodology.& green maybe also be sent to ISCs.

Supervision documents SOD and COD (supervisory mission Operations and PRE (country Difficult in obtaining up-to-dateand data & correspondence with borrower). dialogue and background for data on disbursements & status

(include loan/credit agreements, CESW, lending operations. & of outstanding issue.previous agreements). research & policy work). Correspondence difficult to

* Documents in ISCs; data in find.OPSnS.

Project/sector/country SOD & CODs (project Borrowing countries, Staff unaware of the searchingevaluation reports completion reports). OED Operations and PRE staff jto capabilities provided by the

(project performance audit help improve future economic & PPIM system. Much of thereport & impact evaluation sector dialogue, lending potential benefit forreport). strategies & project designs). improvement is lost.* PCR. PPAURs (in OED ProjectPerformance InstitutionalMemory System).

Country economic and COD (CEM) & SOD (sector Operations (help shape Staff unaware that IBIS text-sector reports reports). country strategy and policy bases exist (searcb titles,

* Final reports (gray & red dialogue). PRE (input into keywords and abstracts).cover) in ISC yellow cover no policy formulation & researchcentral store program).

Annex 3

r________________________ ._______________________________ _____________________________ PVase 2Zuformation Sources Created By Used By Eroblems and Oifficulties

National economic and Borrowers create; Operations Country economicst (COD), No tools for mana8ing country-social data staff (country economic and sector economists (SOD). definition data, internal

sector missions). inconsistencies arise;* in microcomputers. difficulty in obtaining earlier

data from private database;rules by previous ownerundocumented.

Standard economic and Operations (country economic PRE (to support cross-country Economists report difficultiessocial data & sector work). analysis and to use in Bank in getting data from DESD.

PRE (operational missions/ documents). Data sometimes out of date.data collection missions). Operations (to support country* PRE organizes & stores data economic and sector work).in BESD.

Bank research documents PRE (research work). PRE & Operations to support Reports desk rated moreOPperations (funded by Bank policy work and country favorably than present ISC.research comittee). economic work. (Complaints about 3-day val).* Available from regional ISCs.

External research Maintained in Bank library Mostly PRE staff. Staff unaware of electronicinformation network. Also collected library search facility.

through individual information Staff lose contact with humansearches, attendance at networks.conferences and externalprofessional contacts.

Resource availability and Derived from the Finance Country officers (to formulate Difficulty Setting resourceuse data Complex databases. Country Program & budget availability & use data they

* in OPSMIS. paper, plan CAM, monitor need from OPSMIS system.country progress); Countryeconomists (to monitor CESWwork program); Task managers(to plan/monitor resource usa& timetables for lending &supervision).

Official memoranda and Created by all staff for policy Staff in policy & operational Staff hesitant to rely an ISC,correspondence & operational work. work. therefore store important

* in ISCs. memoranda & correspondencein their office. Others can't find.

Knowledge of respected Operations and PRE (to Difficult to rebuild thecolleagues discover who has worked on professional networks that

particular subject, solutions for support enquiries (postspecific problems). reorganization).

Annex 4

Chronology of Information and Technology Milestone

Pro-1970 Period

Organization & Policy Management Issues Technology & lIntommaton

19408 Central fieS organized& Iff sevices agreemnt Rational and allocations of

t950Bs shared facilVtesJoind Ubrary orealtd

Outside computes, etrodici160 accounting machines used

Bank acquires own EAM equipmentData processing function In

Treasuers and computtion InEconomics departments Computer feasiblity study

(Arthur D. Uttle)Records & Communications In

single division of ADM Dept

DP Division In Administrationresponsible bor Joine Computing

Caster

Bank acoquires own mainframecomputerBurroughs 85500

Data processing committeeovetsight

Resource allocation problems

Annex 4

Chronology of Information and Technology Milestones

1970.74 Period

organization & Policy Management Issues Technology & Informatlon

1S70 Data processng activity study EAM phasing outComputng AtUities Dept Pleat. Mamick)organized under Eocrnomkc

RPsearch Word processing Introduoed; IBMtape-based units

Pority Subcommittee Cost-benefit based pdorityalocats resouron setting

Concem over comparative cost ofoutside computing

Bacldog problemsTechnicl Policies & Procedure

Memoranda piomulgatedWord processing: floppy disk Vydec

Central word processing regional unitssatelites organied in ADM

Capacity Shortages Mainfrme computer upgraded tom6700

Ad hoc user groups organizing Compatibility concerns regarding 55OO retained until conversionsystem developed on old computer accomplished

Optical characr recognitiondevice for Teexes

1074 Ubrary serice agreementrevised

Annex 4

Chronology of Information and Technology Milestones

1975-79 Period

Organization & Policy Management Issues Technology & Information

1975 Regional Information Centers Computing capacty Inpa Paris voice line for Europeanmeplae Central Flis only upon teendce complaints Telex

External computing budgets Remote job entry terminalsremoved from priority connect mainframe outside

committe given directy to computer roomusers

Computing priority alotldonextends to requirements

definiffon and benefits studies(previously only feasiblity and

preliminary design work)Menial telphons switch

replaced by CENTREX

Conmuntion Division of ADMresponsible tor tselphones,

cables, messengers and mail

Papedlow, word processing,office mactiJne studies going on

Office Technology Divisonorganized in OPD

First FAX machine Installed at therequest of the Japanese ED

Future of Computng Studyproposes decentraization of EMENA pilots disional levelbudgets. VP level authty, word processing Telexes sent directly ftrom

Inegrated planning optical character reader to_979 _ ___oa__ _criertch

Annex 4

Chronology of Information and Technology Milestones

1980-84 Porlod

Oanizatlon & Poncy Managemen Isem TechnoWgy & Intormaton

1980 nromtion Management Multi vendor computW stragy OMNFO pioedCoordinaing Commn propod

supeoed. Comnpu Priodrft DEC compute innoduedCommittee

IBM mainrame centew esUtabihedTransitonal word processinq

statyadopt On-Om Mbiogaphi systemIntoduced

Chareback for some sevc CSEW projet stats

Computing System ectronic PiX insa in H BldgDevelopment Fnd establisled

for Institutional oversightData oommunaftons switoh

Instd

INiS and, shorily after, JOLUSsystems In iubies

tormaion ResourseMaagenme Conep adopted

CAD and OT DMsionconsolidated to form IRMOD Chaebk for all eerves: ful

cott reovery basisVPA proiulgates *Govemane

poAlcy & procdure

1nfom Rsoures Advsory Strgc pianning pect bens Shor tem oputing capacityComitnee oraid study

Study of impact of officetechnology on filts Teoex switch ornected to ofoe

IRM Sbtry adoptd by systemsMianaging Comminee

Sty implementton lw-on Aii4nt office system IntroducedSectorel iby establis project iniiated In FRNCOM

Study of networked oords mgt -Information oenters Fist data network in S Bldg

Managing Com_m1984 acoelerates stndard selection

Annex 4Chronology of Information and Technology Milestones

1985-Reorganization

Organization and Policy Management Issues Technology & Infonmation

1985 Chargeback on direct cost basis FAX switch oonnects to someInstitutional information only terminals

technology standards adoptedComputing System Development BESD released to users

Fund abandonedSWiFT network for Cashier

Coordination of technology drivenservices: training, buildings Ail4n-1 service growing

PA developed paper on World Standards piloted In ESABank as a Workplace: Scenario

System development function for 1995decentralized to users

Waiver process highly active IBM center growing, BurroughsOPD study of technology flat: machines adjusted to demand

functions In programcoordinator's offices

Interbuilding fiber optic cabigngOffice technology action research contemplated

program focuses on humanelements of OT Introduction FAX switch Installed

BSP studies conducted In Additlonal minicomputers forFINCOM and PA specialized applioatons

ADM facility/phone functions Digital Centrex selected forconsolidate with IRMO to form ITF Bankwide use

Organization of InformationUbraries link with iTF services: phones, cables,

library, tecords

Connectivity project underwayChargeback abandoned for

human based servioes

UniSys A17 machine replacesBurrough 87900s

IMF Joint Computing Center DEC machInes connected Incontract terminated dusters

IOeras Ai14ni1 cflort begint1967 __ _ ______

Annex 4Chronology of Information and Technology Milestones

Reorgan&atIon-1990

Organization end Policy Management Issues Technology & Information

1987 Bank reorganization restructuresITF: ntegration (cabtes); Raview of Standards Creaton of communications hub

decentralizatIon (end user sppt); In Parisooneolbtation (policy staff) Reew of chargeback policles

Information Management information management policyTechnology Policy Committee agenda formulation

proposedPlan, organize & execute massive 'Computers for all' and 'AJ-in-1

post-reorganization OT for managars' initiativesrelocations

IMTPC ConsfitutedVarious tiers of information CASE tools for system

management committees organizing developmentInformation oriented policy

studies: info management strategy Chargeback uses marketpaper. H/L staff information needs comparators Electronic forms

analysisGlobal communications study

Inauguration of communicationshubs in Delhi and Jakarta

Decentralization of end-user Federated MIS structure adopted Aftrica network studysupport staff completed

Adopt decentralized transactionprocessing & accounting framewrk Unk of Bank Al with OECD

Disaster recovery planning IBM hot site' backupdevolved to line units Review of the Bank archives in

anticipation of 50-year Bank history Begin overseas hubs and highcapacty links integration

Institutional FAX initiative

Redefine purpose of standards and Pilot availability of ManualsAnalysis of information center waiver process electronically

decentralizationExperimental overseas video-

Exploration of 'utility coneep8 conferencing (Paris)for central computing technology

services Records and Archives ManagementImprovement Program

Formultien of revised Records IT cost measurement study and pro-Management Policy and Standards posed cost accounting tramework Technology architecture studies

Opening of first communicationsnormaton Management and hub i n Africa (Nairobi) and LatinTechnolog'i Strategy to Boad America (Mexico)

OT use at very high levels:7700 workstations, 4300 AJI4in-1

1990_ accounts

Annex 5

Management Arrangements

1. This summary of management arrangements associated with informationtechnology in the Bank focuses on management processes and decision making,centralization and decentralization and tie organization of information andtechnology management.

Early Management Approach

2. Information services, in the days before information technology waswidespread in the Bank was organized on a service basis. Telephone services wereorganized as a separate function almost from the establishme. t of the Bank. Ubraryservices were centralized as early as 1948. There was a cable section as early as 1950.And central records were established in the 1960s. These arrangements exploitedreturns to scale and specialization efficiencies. Sharing of resources was also anobjective of the joint library agreement between the International Monetary Fund andthe Bank. The first organizational integration within the Bank occurred when cablesand records were placed in the same section in ADM because it was recognized thatthe activity associated with cables would generate important records that should bekept accessible and shared.

3. In the early days of information technology use in the Bank, the applicationswere considered to be innovative but integral parts of the regular work of the Bank.They were managed from the functional departments that managed the rest of thework. Primarily, these included the Economics Department for research applicationsand the Treasurers Department for financial applications. This mode of operationswas sustained until the early 1970s.

Managing the Bank's Own Computing

4. Starting in 1964, applications for an in-house computer were considered.These included the compilation of statistics on Bank operations, personnelmanagement, etc. There was a view that any particular application could not justifycomputer acquisition but, if the computer was already in place, the application couldbe easily justified. The computer was already being perceived as an indivisible, fixedcost installation, that would be troublesome to allocate over various functions.

5. In 1965 it was decided to undertake a feasibility study for an in-Bankcomputer and the consulting firm of A. D. Little was chosen to do it. The studycontemplated a Bank installation or a joint facility shared with the IMP, examinedprospective uses for a computer by both institutions and explored organizationalarrangements for the installation, and personnel costs as well as the costs ofequipment.

2

6. The feasibility study was prescient in anticipating issues that later becamefundamental to managing information technology in the Bank. The centralization ofthe programming function was among organizational alternadves considered but thestudy recommended decentralized programming staffs: one for the financial andadministrative 'data processinge work, another for econemic and modeling "scientific"programming, and a third being footloose. The merits of end-user computing werediscussed and rejected.

Initial Implementation

7. In 1968 the Joint Computer Center (with IMP) was organized as the DataProcessing Division in the Administration Department. Its functions were embodiedin the Systems, Programming and Operations sections. The consultants'recommendations regarding the merits of organizationally consolidating programmersin the DP Section of the Treasurers Department and in the Economics Departmentwere debated. Programming priority problems were beginning to occur thatsuggested decentralization but ultimately a central programming group was decidedupon.

8. Allocation issues for machine or programmer resources began to appear assoon as usage grew. In 1969 there was a proposal for joint working parties" to dealwith interdepartmental system developments. Program sharing was discussed toreduce duplication of effort as well as the pros and cons of end-user programming.Algorithms to account automatically for machine useage by customer and job weresought. Load forecasting and service level - capacity tradeoffs were debated. Acontrol system to screen and stretch out system development was contemplated.Actual use by the Bank and the Fund diverged from the balance envisioned in theJCC contract. There was an apparent lack of a management mechanism to dealcomprehensively with the coordination and adjudication of shared resources.

9. In 1970 the Data Processing Committee was proposed as a forum forsetting priorities based on cost-benefit analysis. The committee was made up ofsenior Bank staff and chaired by a vice president. As it began its work, a study of dataprocessing activity was commissioned to examine organization, procedures, capacity,workload and project the best way for the Bank to operate in the next five years. Thefirm of Peat, Marwick aiid Mitchell was selected to do the study.

10. In FY71 comprehensive service utilization projections were made for thefiscal year for the first time and a resource allocation procedure was adopted by theDP Committee using cost-benefit based priority indicators.

Computing Activitles Department

11. In FY72 the Computing Activities Department was created in the EconomicResearch Complex. Elevated to department status, its functional Divisions included:Software Systems, Analysis & Programming, ICC, and Data Preparation & UnitRecord. File Processing Services and Analytical Services Divisions were added abouta year later. At that time a formal policy role was instituted with the publication ofTechnical Policies and Procedures Memoranda.

3

12. The Data Processing Committee established subcommittees to allocateinternal, external and departmental computing resources. However, the PrioritySubcommittee and PAB rejected the concept of Baniwide savings from computing asjustification for CAD investment in computing. Meanwhile users wer. organizing anumber of ad hoc groups; among them, the *Computer Applications Task Force", inthe Industry Projects Department and the "MFmancial Users Group.*

13. The priority process used by the Subcommittee consisted of: identifyingapplication, preparing requirements and benefits statements; establishing broadpriority areas and allocating resources to study systems covering alternatives, resourceneeds and cost-benefit analysis. The CAD budget was based on extrapolated userdemand. This process was flawed because the predictions were subject tomiscalculation and the actual use of services lagged the budget formulation process byseveral months. Capacity increases occurred mainly in response to service complaintsin mid-year after shortages had developed. The service predictions were uncertainand had a relatively long lead time with the result that regular budget submissionslacked urgency. In FY76 external computing budgets were removed from PrioritySubcommittee jurisdiction and allocated directly to users by the Programming andBudgeting Department.

Fresh Management Approaches

14. In 1978 various technology studies were contemplated covering topics suchas work impact and the convergence of computing, document processing, andcommunication. The Bank commissioned the "Future of Computing" study, lead by aconsultant from Coopers and Lybrand. In 1979 this study was approved by thePresident. It recommended the decentralization of computing budget, to users,integrated computing planning and management procedures and fixing responsibilityfor computing at the Vice Presidential level. The study originally recommended aVice President for information and technology (a 'CIO" in today's terminology) but inthe event the area was assigned as an additional responsibility for VPA. This studyblueprinted the major management thrusts of information resource managementthree years before the Bank's IRM coucept began to be implemented in the Bank. Asa follow-on to the 'Future of Computing" study, the Information ManagementCoordinating Committee superceded the Computing Priorities Committee and wascharged with a mandate with more policy content.

15. In 1980, long range capacity planning was seen as necessary. An agendaenvisioning 'Computing in the World Bank in the 1980'se was prepared. It included aconcept for information architecture towards which the Bank was intended to evolvein the context of the 'Future of Computing" study. While it made much of "distributedcomputingi cancepts, it envisioned a key central role for CAD in almost every aspectof information technology. Heavy CAD involvement was envisioned in user support,policies and procedures, new technology, data management and computing facilities.The new budgeting concept of the "Future of Computing" study was expressed asinformation for users to aid their understanding of accountability, rather than as atrue chargeback system.

16. The availability of software for IBM mainframes meant that Bank userswere heavy users of timesharing and service bureau services since no IBM machine

4

was then in the Bank. Examination of costs indicated it would pay the Bank totransfer some of this load to an internal computer. As a means of saving some costs amultivendor strategy was adopted and an IBM computing facility was organized in1980. The facility was operated by CAD but an Advisory Committee of IBM usersprovided a forum for working out management decisions for the IBM center thecontext of the Bank's regular management processes. It was in many respects a "usercooperative" organization.

17. The changes in the products that became available in the technologymarketplace with the "microchip revolution" were in full swing at this time and wereespecially evident in the newer products made possible by these chips:wordprocessors, personal computers and minicomputers. Lease or buy deeisionswere seen as a means of dealing with OT and were incorporated in the interim wordprocessing policy.

Information Resource Management Introduced

18. The Information Resources Management Department was organized inJuly 1982. The concept was that information was a corporate resource that should bemanaged like other corporate resources such as personnel, facilities, and finance.Accountability should lie with line managers. The department was formed byconsolidating computing activities (CAD) and the office technology division of OPD.Telephones, libraries, copiers, mail and records management were not part of the newIRMD, even though their primary activity was information resource related. Whenthe implications of the telephone company divestiture were understood in the Bank,telephone planning and engineering functions were in IRMD while operation andmaintenance remained in ADM.

19. In FY82 a special budgeting category was created to deal with informationsystem development items: the Computing Systems Development Fund. Capitalbudgeting had just been introduced into the Bank, embodying cost-benefitjustification instead of the explicitly incremental budget-base-plus-increment systemof the operating budget. The CSDF resembled the capital budget in envisioning cost-benefit justification of projects but did not carry its multi-year authorization or resultin depreciation charged annually to the operating budget. The CSDF wasdiscontinued in FY86.

Chargeback Instituted

20. In FY82, chargeback for some services was instituted on a pilot basis. Thetransition to chargeback was soon made for all services on the basis of full costrecovery including all overheads. The procurement of services from other sources,including those outside the Bank, was liberalized. Due to the nature of the Bank asan international institution, chargeback rates based on full costing were non-competitie for human-based services. Chargeback rates were therefore revised aftera time to recover only direct charges. Machine services thrived under this system,especially the IBM center, but some services continued to be offered under 'contractfacilities management" arrangements for dedicated resources. The practical problemwas that under the rules applied generally to Bank units there was no way to operatethe service on a truly enterprise basis. For example, it was difficult to adjust capacity

5

to demand because expansion or reduction was administratively encumbered (bypersonnel policy, budget guidelines, carry-over restrictions, etc.), as were priceadjustments.

21. Service projections were based on demand estimated during budgetformulation about six months before the beginning of the fiscal year. Theseprojections often differed widely from actual use, generally erring on the low side,because demand that could not be foreseen in advance would materialize, orcircumstances and requirements would change. The budget for the service itselftherefore became unrealistic and resulted in misallocations because it was based onunrealistic projections. Attempts to mitigate these difficulties were discussed betweenIRMD, users, Data Administrators and PBD but the fundamental problem remained;the service was overconstrained.

Polcy and Planning

22. A network of Data Administrators was created to take the lead in planninginformation technology in each user area and as a body constitute the InformationResource Advisory Committee that would be a forum and advise the Director of IRMon policy matters. In late 1982 the IMCC promulgated the 'Governance system ofinformation technology policies, procedures and standards. Shortly afterwards, theIRAC began to function. The IRM Strategic Planning Project was begun thatincluded 1) the short term capacity assessment, 2) the Informations System Plan, 3)the Office Systems Plan, and 4) the integration phase that formulated the IRMstrategy. Individual DA's served as the study team for th. ISP. The IRAC was alsoheavily involved in the integration stage as the strateg% was formulated. The IRMstrategy was formally approved in November 1983 by ti Managing Committee.

23. Part of the IRM Strategy report contained a cost-benefit analysis which wasan attempt to quantify orderly versus disorderly introduction of technologyinfrastriure. The strategy envisioned a networked, database, distributed technologyenvironment based on the high level information sharing needs described in the ISP.These were high level aggregates (low levels of specificity) derived from a top-downmethodology relying on senior management for information. The infrastructure tomeet this need had to be extensive because the only assumption that could be made,given the information available, was that the potential for specific needs waspervasive. It was recognized that the Bank's regular management processes wouldgovern the details but the underlying infrastructure should be adequate to supportmost potential applications. The resulting infrastructure costs were high, and theattributable benefits, at best, productivity gains derived from providing access toinformation, cost avoidance from integrated infrastructure, and system developmentbenefits from infrastructure tools.

Strategy Implementation

24. The implementation of the strategy required developing a numbxr of areasof engineering information, technical decisions and administrative processes. Aprogram was defined. Implementation of the strategy began in FY84 and continuedthrough FY86. The management items, including the chargeback review, theinformation utility business plan, the long range planning process, and updated cost-

6

benefit analyse, were halted in TRAC. In many instances, the probable underlyingissue was that of centralized versus user controL

25. In April 1985 the Bank adopted the institutional information technologystandards: a family of workstations, LAN, office system and data base managementsystem. The need to coordinate OT plans with the resources for training staff and tomodify buildings was pressed but no changes were made in budgets for these supportareas.

26. Because of pressures to remove restrictions on the acquisition of officetechnology, the selection process was accelerated by a year through removing the pilotphase of product testing in the user environment. This pressure had the unfortunateresult of curtailing the system integration work needed to insure that variouscomponents of the standards worked well together. The need for piloting wasgenerally recognized later. Eventually, as the complexity of the installation and thedependency of the work of units on the installed technology was acknowledged, a pilotsite in Operations (the ESA Region) was chosen. Integration difficultiesaccompanied the pilot installation, to the extent that the evaluative work planned forthe pilot had to be modified.

27. While technology issues were moving forward, the issues surroundinginformation were not making as much progress. Areas in which central data storeshad clear potential, such as FIN and ERS, began to move toward the subject areadata bases envisioned by the IRM Strategy under the guidance of their DataAdministrators. But policy for institutionwide information sharing languished.Proposals brought to the IRAC were debated but left unresolved. The payoffs forinvesting in the planing, design, and administration of an institutional data base wereunclear. Issues of ownership and stewardship arose, in particular who would be theBankwide DA.

28. The issue of computer information security was not included in the Bank's1984 Strategic Plan. A consultant study, commissioned by senior management toreview this issue and propose recommendations, was completed in August 1985. Themajor recommendation was that the Bank should develop an Information SecurityProgram and develop staff capability to implement it. This, program which provideda framework for protecting the institutions' information from inappropriate accessand inadvertant destruction was established in October 1986. An Information SecurityCommittee (ISC) was established.

Decentralization of System Development

29. The human based system development groups within the central computingdepartment operated under chargeback. Despite the use of consultants, who carry nooverhead burden in the Bank's budgeting system, and cross-subsidy from otherservices, there was insufficient flexibility to adjust resources and to maintain acompetitive position vis-a-vis local firms engaged by users. It was decided todecentralize system development staff except those employed in institutional activities,such as technical consultants to operational missions, software engineering specialistsand data base specialists. The staff was moved to user areas, under usermanagement.

7

Formation of ITF

30. In 1986, ADM facilities functions were consolidated witb IRMD to formITF. These changes were intended to provide for coordinated management offacilities, information technology and information based services. There was also arealignment of functions to provide for a service oriented organization. Chargebackwas abandoned for human services which were to be funded either by the institutionalbudget or through negotiated service agreements. A year later, ITF was restructuredin the Bankwide reorganization to reduce the number of major divisions and torealign its operations yet further toward a service orientation. This implied separationof the policy and control functions from the service delivery function andconsolidation into fewer divisions.