The World Bank
Implementing Financial Management Information System Projects:
Selected Lessons from IFMIS Community of Practice
Bill Dorotinsky
October 15, 2008
2The World Bank
Outline
• Origins and some basic findings
• Formalizing a FMIS maturity model
• A frequent question - Make vs. Buy
3The World Bank
COP Origins:Bank FMIS Project Review
• The review covered 34 projects in 27 countries across 6 regions, involving $1 billion over 17 years
• Most Bank projects were not FMIS-only, but embedded in broader financial management or public sector reforms
• Many of the projects paid attention to training and ‘soft systems’ surrounding the technology, including FM training, change management training/advice
• An FMIS project, on average,
– took 7 years to be complete
• Ranging from 9.1 years for Africa to 5.8 years for Latin America/Caribbean
– average Bank-financed cost was $12.3 million*
– component changes in 75 % of projects
* Excluding $600 million for Russia
4The World Bank
Risks, success & failure factors• Projects risks
– 20 % cited technical complexity, too many components– 24 % lack of institutional capacity– 21 % weak government commitment
• Success factors– Full-time project coordinator (36%)– Champion at political level (14 %)– Training (14 %) (IT, FM, change management)
• Failure factors– Full-time project coordinator (23%)– Commitment (23%)– Project design (20%)
5The World Bank
Preconditions for success?HR Capacity, ICT Readiness, & Project Success
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
Burkina Faso L
Malawi L
Uganda L
Bolivia L
Indonesia L
Brazil L
Guatemala (1) S
Nicaragua S
Honduras S
Ecuador (2) S
Columbia S
Chile S
Hungary S
Argentina S
Human Development Index* E-gov Readiness*
(Human Development Index: UNDP Human Development 2001 Index, E-government Readiness: UNPAN Global E-Government Index)
6The World BankFebruary 2008 ECA Treasury / PFMS Projects 6
Treasury/PFMS Maturity Framework
Readiness PFM reform strategy Institutional capacity Countrywide network infrastructure
1
Preparation Legal and institutional frameworks Budget coverage Treasury Single Account (TSA)
2
PFMS Design Definition of system functionality Detailed technical requirements
3
Procurement Large scale ICT systems Technical Assistance and Training
4
System development & integration Full scale testing and rollout Training and change management
Implementation
5
Maintenanceand Support
Budget funds Technical capacity System administration Maintenance
7
9 – 18month
s
9 – 18month
s
18 – 36
months
Resources
Effectiveness
Time
Monitoring & Evaluation
Monitoring mechanisms Project mgmt capacity
6
Maturity Frameworkfor Treasury/PFMS projects
www.pempal.org/pfmstoolinteractive monitoring and management of MF
indicators
7The World Bank
Make vs. Buy Question:Selected Parameters
1. Development Period2. Functionality 3. Compliance with BPR4. Total Cost of Ownership (TCO)5. Intellectual Property Rights (IPR)6. Maintenance and Upgrades7. Flexibility8. Integration with other systems and modules9. Performance and Quality10. Documentation and Training11. Software Evaluation12. Legal Redress
Conclusion – no one right answer.