Implementation Issues

Implementation Issues

15. A full discussion of all implementation issues associated with building information systems for PFM is beyond the scope of this paper. We will restrict this discussion to some issues which we have found to be particularly relevant to the implementation of PFM systems. Factors that need to be kept in view while initiating a project to improve or implement computer-based information systems to support public financial management include:

(i) Awareness of the Scope and Dimensions of the Exercise.

The systems for budgeting, accounting, revenue administration, human resource management, and debt management constitute the basic transaction-processing systems in the overall network required to support PFM. They are the repositories of most of the data that is required by the other modules of the network and form the foundation for modules of the network that support fiscal planning and provide the decision support mechanisms. These systems are characterized by high data volumes, and several of them require distributed processing facilities. The order of magnitude of effort involved in their implementation is much higher than those for the other systems in the network. The high data volumes and transaction rates associated with these systems make them primary candidates for computerization. As a matter of fact, in the absence of some form of automation, these areas are liable to generate severe backlogs of data, which can result in major gaps in the information required for fiscal management. These areas therefore present the major opportunities for automation. In view of their size, however, they also represent the systems most likely to encounter problems if the implementation process has not been planned carefully.

Development of an overall framework outlining the nature and scope of the different modules of the information systems network and the interconnections between these modules would enable the project to be put in proper perspective. It will focus attention on the specific parts of the systems network that are included in the scope of the project, and what other modules would these systems need to interface with.

(ii) Project Management Strategy

The implementation of government-wide computer systems to support PFM is a substantial undertaking. It is very important that project planning methodologies are used to plan, implement, and monitor the project, with project management responsibilities clearly identified. It is advisable to implement such projects in a phased manner so that they can be put in place and adequately monitored in a controlled environment. A phased implementation also ensures that they do not exceed the absorptive capacities of the organizations where they are implemented.

Ensuring project sponsorship at the highest levels of the functional areas and participation from the widest range of users is necessary in all phases of the project. Senior Management input is particularly important during the earlier planning and design phases of the project. The main skill requirements for these phases are an in-depth knowledge of the functional area and a managerial capacity to ensure that the project is accepted by users. The technical aspects become important only during the later implementation phases. To ensure this, it is desirable to set up a steering committee headed by a senior level manager and members from different user groups. This committee would be a vehicle to provide user input to the technical team responsible for implementing the project. Steps taken to involve users in the design and implementation phases also ensures that the project is owned and adopted by the users once it is completed.

(iii) Social and Political Implications of PFM Systems

Implementation of computer-based systems to support PFM requires an understanding not only of the business processes and information requirements, but also of the social, cultural and political environment of the organization and the country within which they are being implemented (Walsham, Symons, and Waema, 1988). It has been argued that computer-based systems are social systems  Project Management Skills. These include the skills required to manage a complex project with a large number of interdependent activities. An important component, is the ability to interface with senior government officials to ensure that project resource and logistical requirements are fulfilled. These skills are often present in local government officials, though they may not be related to the implementation of informatics projects. However, since these officials are much more familiar with the political and other social considerations particular to the environment and since these considerations are very important for successful project implementation, it is highly desirable that project management be entrusted to country officials. If necessary, consultants could assist these officials in an advisory capacity on the more technical aspects. The skills profile required for this position includes an overall knowledge of the business area requirements coupled with good leadership, project management, and interpersonal skills.

Technical Implementation Skills. These include familiarity and experience in the use of the hardware and software actually used for the implementation of the computer systems. These skills are also not often present within government. However, they may well be available through local consultants or from the private sector. A possible model is to set up a pool of technical experts to assist in the design implementation and support of government computer systems. It may be necessary to use a mix of local and expatriate consultants/personnel in the pool depending on the availability of local experienced staff. The close association between these groups would also encourage transfer of skills and knowledge from the expatriate consultants to local staff.

User Support Skills. In addition to the technical skills that are required for the design and implementation of computer systems, another area which is at least as important is that of end user support. These include the skills required to provide hot line support, hand holding, and more formal coaching to end users in the use of the systems. This end user support staff would be responsible for providing training to end users in the actual use of the systems to government personnel involved in the PEM business processes. Once these systems are implemented in government, courses in the use of these systems should form part of the normal training required by the finance and accounts personnel and should be delivered through the local training institutions responsible for providing related training.

Management Training. These include high-level orientation courses for managers in the advantages that computer-based information systems provide for financial resource management in the area of PFM.

(vi) Organizational Issues

An information systems (IS) organization will need to be set up, or existing organizational units strengthened to incorporate the skills mentioned above, to manage the planning, development and operation of the PFM suite of systems.

IS professionals are hard to retain in government in view of the salary structure prevalent compared to the private sector. Any elaborate IS project will, therefore, need to remedy this situation. A number of approaches are possible; for example, grant of special technical allowances, project based financing, etc.

It is likely that IS support will be distributed amongst several agencies across government. It is very necessary that appropriate coordinating mechanisms be created to ensure that a set of policies, procedures, and standards are put in place for managing data (data administration) and systems across government.

(vii) Infrastructure Requirements

A number of the systems required to support PFM, described above, would ideally be implemented as an interconnected network of modules at important regional locations, with a central node where all data is consolidated and analyzed. The primary candidates for this configuration are systems that support the tax/custom duties collection processes. However, an essential prerequisite for this type of network is the availability of good telecommunications facilities that can be used for data transfer between the nodes of the network. The degree of stability and sophistication of the telecommunication network often determines the timeliness of the data from the systems network. In most countries, good on-line communications between nodes of a network may not be possible. In these situations, periodic communications between nodes is used to transfer data. If even this is not possible, then data is transferred by off-loading it onto computer-compatible media and transporting the diskettes/tapes physically between nodes.

The stability of the electrical power systems is another major requirement for the operation of computer systems. In most situations it is necessary to use a UPS to ensure that data is not lost when the system comes down on account of power breakdowns.

It is imperative that the hardware and software chosen for the implementation of computer systems can be supported locally. It should be ensured that the vendors have an adequate local presence to be able to provide training and technical support during the life of the system.