Institutional Reform and Change

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CONFERENCE PAPER #5 WORKING DRAFT, NOVEMBER 06

INSTITUTIONAL REFORM AND CHANGE MANAGEMENT: MANAGING CHANGE IN PUBLIC SECTOR ORGANISATIONS

A UNDP CAPACITY DEVELOPMENT RESOURCE

Capacity Development Group Bureau for Development Policy United Nations Development Programme November 2006

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CONTENTS Page ACRONYMS AND ABBREVIATIONS EXECUTIVE SUMMARY I. II. III. IV. Introducing the Issue Organisational Change - What have we learnt so far? Managing Change – Tools and Methodologies in Implementation Guiding Principles for UNDP in Facilitating Change Management ANNEXES 1. Annex 1: Case Studies 2. Annex 2: Facilitating Change: Tools and practical guidance for practitioners 3. Annex 3: Failure of Change Efforts – What to Look out For 4. Annex 4: Bibliography 3 4 5 7 8 14 17

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ACRONYMS AND ABBREVIATIONS ADB DFID ECDPM EFA FAO GEF ILO ISCED MIT NORAD OECD /DAC UNCPSD UNCTAD UNDG UNDP UNESCO UNEVOC UNICEF USAID WBI Asia Development Bank Department for International Development (UK) European Centre for Development Policy Management Education for All Food and Agriculture Organization Global Environment Facility International Labour Organization International Standard Classification of Education Massachusetts Institute of Technology Norwegian Agency for Development Cooperation Organisation for Economic Cooperation and Development/Development Assistance Committee United Nations Commission on Private Sector Development United Nations Conference on Trade and Development United Nations Development Group United Nations Development Programme United Nations Educational, Scientific, and Cultural Organization United Nations International Centre for TVET United Nations Children Fund United States Agency for International Development World Bank Institute

Acknowledgments This note has been drafted by Bob Griffin (Independent Expert), Niloy Banerjee (UNDP/CDG), and Kanni Wignaraja (UNDP/CDG). Major inputs were also derived from a change management best practice note of the Asia region and complementary literature review by Katarina Kovacevic (Independent Expert). Rasheda Selim provided independent editorial comment. It has benefited from a technical review from Mel Blunt, James French, James Hern, and John Woods. This note has benefited from prior work on public administration reform (PAR) such as a UNDP Practice Note on PAR and discussions will be further continued during a January ’07 workshop on institutional reform and change management to be held in Bangkok.. Contact Information: Conference Paper series Production team, Capacity Development Group/BDP, UNDP: Editor: Researcher: URL: Kanni Wignaraja, kanni.wignaraja@undp.org Dalita Balassanian, dalita.balassanian@undp.org www.capacity.undp.org

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EXECUTIVE SUMMARY

Public sector organisations are often perceived as resisting change. Many public sector organisations seek capacity (the ability to get things done) but not change (a different way of doing old and new things). The introduction of increased use of appropriate change management strategies and methods in development cooperation will often be resisted due the difficulty of precise definition of their results and the uncertainty of their outcomes. For many development practitioners change and capacity are distinct, but the evidence suggests that they are intertwined. Hence, it is important to understand what aspects of the status quo can be changed so that capacity development can take place. Identifying the boundaries of change management work is important as is identifying the risks and potential mitigation. Moreover, this is necessary in order to manage expectations accordingly. Different actors in change process have different powers and exert different influences. Thus, there is a risk that change model may represent ‘political fix’ (reflecting the interest of the more powerful players) or a response to donors’ pressure as ‘external drivers for change’ without a genuine commitment, thus risking failure of...
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