1. UNDERSTANDING CHANGE

WHY CHANGE ?

RECOGNIZING SOURCES OF CHANGE

Change affects every

aspect of life: taking a

proactive approach and

positive attitude to PFM

change is the only way to

take charge of the future.

WHY PFM CHANGE?1. PURELY TECHNOLOGICAL AND

ECONOMIC CAUSES. IT IS PART

OF A DRIVE TO ACCOMPLISH

CURRENT TASKS MORE

EFFICIENTLY.

2. FOLLOW THE RIGHT PATH. (Sociopolitical causes)

CHANGE CAN COME FROM

MANY DIRECTIONS: FROM

SUPERIORS OR SUBORDINATES

WITHIN THE ORGANIZATION,

FROM PERSONAL INITIATIVE

AND FROM OUTSIDE.

MAKE SURE THAT YOU ARE

AWARE AND BE OPEN TO

CHANGE.

TYPES

GRADUAL CHANGE –IS A CHANGE THAT OCCURS SLOWLY OVER A PROLONGED PERIOD. IT IS AN UNENDNG ORGANIZATION-WIDE CHANGE PROGRAMME TO IMPROVE QUALITY OF SERVICES AND PROCESSESS, REDUCE COSTS AND RAISE PRODUCTIVITY.

OF CHANGE

RADICAL CHANGE- IS A SUDDEN, DRAMATIC CHANGE WITH MARKEDEFFECTS, FOR EXAMPLE, COMPUTERIZATION OF ALL FINANCIAL TRANSACTIONS FROM ASSESSMENT TO COLLECTION OF ALL TARGET RECEIPTS TO DISBURSEMENT OR EXPENDITURE OF ALL AUTHORIZXED EXPENDITURE.

SUCCESSFUL CHANGE PROGRAMMES ALWAYS INVOLVE

PLANNING – FOR BOTH THE SHORT AND THE LONG TERM.

THE CLEARER THE OBJECTIVES, THE BETTER THE PLAN.

WHERE ARE WENOW?

WHERE DOWE WANTTO BE?

WHAT IS THE GAP BETWEEN THE PRESENT AND THE IDEAL STATE?

KEY CHANGES TO CLOSE THE GAP

FOCUS PLANNED CHANGES

1. Change in one area should be supported by change in others.

2.The strategic reasons for change should be widely publicized.

3.Only change that is people-based will work in the long term.

4. Everyone involved in the change programme should be consulted.

5. Change needs fall into high, medium, and low

priorities.

Avoid “initiative fatigue” or overload of too many initiatives in close succession.

Concentrate on a few processes that really count.

An old rule states that more than one objective is no objective. To avoid chaos, a change programme must focus on a single overriding target, selecting and structuring other changes around it.

Try proposed changes on a small-scale first.

If it takes complex reasoning to justify change, abandon it.

Ask of every change, how will this affect all those involved?

All tasks in a change project need to fit into a master plan.

Evaluating a planned change is much easier if quantified:

measures of current situation as compared to target

performance.

Assess a project by plotting a “critical path” for its completion:

work out the order of interdependent tasks to set a framework

around which other tasks can fit.

To make change easier to accept, plan to introduce it in stages. Encourage people to find new ideas for

quick-fix changes. An organization’s continuous lasting change

is the aggregated effect of its changes each year. The amount of changes varies from year to year, as does the proportion of quick fixes introduced.

Build targets for continuous improvement into budgets.

Checklist of Contents in an Action PlanWhy is change being introduced, and what

results are expected?What means will be used to reach those

results?What resources will have to be committed?How will the plan be communicated?How will behaviour have to change/Who will lead the programme and its parts?What stages will it follow, to what timetable?How will the programme and its progress be

measured and monitored?What could go wrong; what happens if it does.

Fishbone Diagram CAUSEMEN MACHINES

INEXPERIENCED STAFF BADLY INSTALLED

VERY TIGHT SCHEDULES INFERIOR QUALITY

METHODS MATERIALS EFFECT

Inefficient service

TASK 1 2 3 4 5 6 7 8 9 10 11 12 STAFF

PLANNING THOMAS

RESEARCH MARIA

WRITING KEN

DESIGN LISA

EDITING ANNE

PURCHASING ANTHONY

PRODUCTION BERT

Look for big improvements from change projects.

Include the prospect of individual and team rewards and recognition in a change plan.

Never take people’s support of action plans for granted.

Avoid the temptation to bribe people to change.

Monitor morale closely, and act if it begins to deteriorate.

Avoid feeling sentimental over inevitable job losses

WHAT MAY GO WRONG HOW TO PREPARE FOR IT

COMMUNICATION Team Leaders are unable to communicate properly with employees

Ensure that coaching and seminars are available.

FinanceProjected cost savings from reforms are disappointingly small.Implementation People pay lip-service to change. Hard to wean away from established practices.CommitmentFeedback and observation suggest that enthusiasm for the changes is waning.DelaysChange programme begins to fallBehind schedule.

Develop a back-up plan for further changes that will extend savings.

Plan to remove old methods no other option but to use the new methods.

Find out the causes and be prepared to revise changes when necessary.

Establish checks to detect problems as well as systems to remedy them, catching up with schedules or rescheduling as necessary.

WHAT MAY GO WRONG HOW TO PREPARE FOR IT

THIRD PARTIESThe programme begins to suffer from poor performance by a supplier.TrainingThe training provision proves seriously inadequate.TimescaleSuperiors, colleagues and subordinates alike become impatient

for results.Interdepartmental SupportNo support from other departments, e.g. IT

TroubleshootingUnforeseen problems arise and threaten to upset the whole plan.

Prepare for the possibility of setting up a team to study problems.

Have outside help available to review training and set up new courses to remedy the situation.Bring forward projects that will yield immediate pay-offs. Be sure to publish progress and success.

Arrange for from other functions to be available for permanent secondment to work on the change programme as needed.

Prepare everyone to treat difficulties as another challenge ofchange. Be ready to set up task

Thank You!

Thank You!