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.