PFMP
Philippines – Australia
Public Financial Management Program
TERMS OF REFERENCE FOR THE ENGAGEMENT OF A
CONSULTANT
SENIOR CHANGE MANAGEMENT ADVISOR
1. BASIC INFORMATION
Activity Title
Engagement of a Senior Change Management Advisor
Implementing Agency
Department of Budget and Management (DBM), Department
of Education (DepEd)
Partner Agencies
Commission on Audit (COA), Department of Finance (DOF),
Bureau of Treasury (BTr).
Duration
Two years full-time
2. BACKGROUND
The Government of the Philippines (GOP) launched a comprehensive PFM reform program
in February 2011, as provided for in the Philippine Public Financial Management Reform
Roadmap. This strategic plan for a whole-of-government approach to PFM reforms, aims
to clarify, simplify, improve and harmonize the financial management processes and
information systems within the civil service. Where necessary this includes reengineering
business processes, integrating relevant systems in the Department of Budget and
Management (DBM), Commission on Audit (COA), Department of Finance (DOF) and
Bureau of Treasury (BTr), as well as implementing agencies, and reassigning functions
between the oversight agencies. The desired results are improvements in fiscal discipline,
fund allocation efficiency, and operational efficiency for the effective delivery of public
services.
The Public Financial Management Program (PFMP) is a joint initiative of the Governments
of Australia and the Philippines. The Program commenced in October 2011 and directly
assists the Government to implement its PFM Reform Roadmap. Through the Department
of Foreign Affairs and Trade, the Australian Government has committed up to A$30 million
over five years, 2011–2016. The DFAT – Australian Aid directly manages the PFMP.
A Program Steering Committee (PSC) provides strategic oversight to program planning
and implementation and decides funding priorities year to year. It comprises senior
officials from the Department of Budget and Management (DBM), Department of Finance
(DOF)–Bureau of the Treasury (BTr), Commission on Audit (COA) and the Department of
Foreign Affairs and Trade – Australian Aid, and aligns closely with the work of the
government’s inter-agency PFM Committee. The National Economic and Development
Authority (NEDA) plays an advisory role to the Program.
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The ambitious reforms envisaged under the Roadmap will involve significant changes
throughout the Administration in the pursuit of improved accountability, transparency
and use of public funds. These changes, in line with the PFM Reform Roadmap and the eGovernment Master Plan, will involve modernization of management information systems,
such as the proposed Government Integrated Financial Management Information System
(GIFMIS), and also lead to major organizational, people and process change. The
importance of effective change management was identified in the GIFMIS Conceptual
Design which proposed a Capacity Building & Change Management Team and has been a
key finding of the World Bank’s analysis of FMIS implementations generally.
Following an Independent Performance Assessment, Change Management was
emphasized as a major platform of this transition. More than two years into the Program,
reforms are moving from the design stages and into implementation, and this will provide
significant new challenges. Implementation will require effective coordination between
oversight agencies and collaboration with spending agencies to ensure that reforms are
taken up as intended. For this reason, and also reflecting the particular interest of
Australian Aid in the development of education in the Philippines, the advisor will spend
much of his/her time in assisting the Department of Education under these terms of
reference.
Strategically, PFMP will focus most of its resources in Phase II on the GIFMIS
implementation. Major studies1 have pointed out that one of the main reasons why such a
solution has seldom achieved its hoped-for objectives is the concentration on its technical
aspects, with insufficient attention being given to the changes needed in management
attitudes, skills and approaches. The shift to implementation also has implications for the
focus and nature of Australian Aid support, through the PFMP. While support to design
processes is a ‘relatively’ straightforward matter of providing technical and policy advice,
support to implementation requires more sophisticated and proactive approaches. It will
be particularly crucial to be clear about the scope and limitations of PFMP support in what
is fundamentally a Government-led process.
Further, the need for a review and update of the PFM Reform Roadmap has been
highlighted. It is important that this process focuses on maintaining the correct sequence
of reform activities. It will also be important to ensure a clear focus on the policy
objectives of reform to provide clear context for the proper integration of reforms.
THE CONSULTANT
The Consultant will play a key role in working with the leadership and management in the
impacted Agencies (and their Bureaus and Divisions) to successfully plan, prepare,
transition and implement the changes whilst reducing associated risk. The main focus will
be on DBM and DepEd but consideration will be given to support other agencies such as
COA and DOF/BTr subject to resource availability.
This is a critical role to secure
1. Organizational commitment through active leadership and management support
for the changes,
2. A smooth and structured preparation and transition period which minimizes
disruption to current operations and
E.g. Financial Management Information Systems – 25 Years of World Bank Experience on What Works and
What Doesn’t (2011): Dener, Watkins, Dorotinsky
1
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3. End user acceptance and adoption of the changes which will lead to a return on the
substantial investment being made by the Government and international partners.
The role assumes extensive engagement from the impacted Agencies, Bureaus and
Divisions. This includes the proactive support of senior leaders and managers and the
availability of sufficient suitable staff to fill co-opted roles to ensure the effective
implementation of the change management framework and the successful implementation
of the target change. The Consultant will work with an identified senior counterpart in
DBM and a wider network of co-opted leaders and managers throughout government.
3. KEY RESULTS/OBJECTIVES
The objective of this activity is to assist the GOP to improve national budget management
and monitoring, and the accuracy and timeliness of financial reporting linked to the
performance management and physical accomplishments of government as a whole.
-
The concept of change management has been explained and adopted as a key
intervention to support the successful implementation of the Government’s PFM
reforms
-
A comprehensive, best practice based change management framework has been
designed and adopted for practical implementation by impacted Agencies, Bureaus
and Divisions
-
The change management framework has been incorporated into the various PFM
Reform Project Plans and is recognized by the respective Project Implementation
Units (PIU) and/or Technical Working Groups(TWG).
-
A Change Management Manual has been completed which details the processes,
templates and guidance necessary to support the effective implementation of the
change management framework
-
An accompanying change management training program has been implemented
including Certification for key roles
-
The change readiness of the relevant PFM reforms is monitored and reported
regularly with effective corrective action taken as required
-
The target changes have been successfully implemented, stabilized and secured
through the comprehensive implementation of the change management
framework
4. SCOPE OF WORK
The Consultant will focus initially on support to DBM and DepEd with the following:
-
Develop a comprehensive, best practice based change management framework for
practical implementation by the impacted Agencies, Bureaus and Divisions
-
Develop a Change Management Manual with the processes, templates and
guidance necessary to support the effective implementation of the change
management framework
-
Develop and implement an accompanying change management training program
including Certification for key roles
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-
Work with the PIUs and/or TWGs to incorporate change management into their
project plans, including those of the GIFMIS Contractor
-
Train the PIUs and GIFMIS Contractor on the change management framework
-
Identify and mobilize key leaders, managers and stakeholders required to
participate in the change management effort, including kick-off event for each
impacted Agency, Bureau and Division
-
Identify key stakeholders for participation in the GIFMIS Design Stage activities
-
Identify co-opted staff from each Agency, Bureau and Division to complete the
required change management activities
-
In line with GIFMIS implementation, assist each Agency, Bureau and Division
complete the initial high level change impact assessment based on current design
and analysis
-
Assist with the development and implementation of the communications and
engagement plan for all impacted staff
-
Assist with the development and implementation of the change readiness schedule
for each Agency, Bureau and Division including participation in Testing and
Training
-
Monitor the change readiness of each Agency, Bureau and Division with regular
progress status reports and ensure effective corrective action taken as required
-
Assist with the development and implementation of change stabilization stage for
each Agency, Bureau and Division
-
Monitor the change stabilization of each Agency, Bureau and Division and ensure
effective corrective action taken as required before hand over of the completed
change to them as the new normal business operations
5. OUTPUTS
In line with the Scope of Work, the Consultant will deliver the following:

Inception Report: an Inception Report including draft Workplan for the conduct of
the assignment will be submitted within one calendar month of commencement, to be
agreed with the PIU and PFMP. Following that, any amendments or deviations to the
agreed Workplan will be presented to the PIU/PFMP in advance before such
amendments or deviations are effected.

Activity Progress Reports: A Quarterly Progress Report is required, which will be
prepared using a template provided by PFMP. Reports will summarize progress
against the TOR and key issues affecting implementation. The Reports may also need
to include performance information relevant to the PFMP Monitoring and Evaluation
Framework. Any such requirements will be advised by PFMP during the inception
period. Additional reports may also be required by the relevant GOP Project
Implementation Unit, and these will also be determined in discussion with the PIU
during the inception period.

Final Completion Report: The Final Report will be submitted to the PIU/PFMP on the
conclusion of the assignment, with presentation of recommendations for any further
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assistance on the implementation of UACS to the PIU and inter-agency PFM
Committee.
6. QUALIFICATIONS AND EXPERIENCE
The Consultant is required to have the following qualifications and experience:

At least a Master’s Degree, or professional equivalent, in finance, economics,
accounting, information systems, public administration, or other related field.

Relevant professional international experience of ten (10) years or more in
implementing and/or managing change management reforms at a senior level
(ministry or central government), preferably in relation to change management
for financial management information systems (FMIS).

Previous experience in the establishment and development of government units
for policy development and supervision of business processes will be a
considerable advantage

Knowledge of public sector budgeting and accounting systems and procedures in
the Philippines will be a considerable advantage.

Excellent interpersonal skills and the ability to work in a sensitive c ultural
environment.

Strong analytical, oral and written communication skills and commitment to
meeting tight deadlines.

Fluency in English is required.
7. REPORTING AND TIMING
The Consultant will report to and work under the direction of the Senior PFM Advisor,
PFMP.
The Activity shall commence in July 2014, be conducted in Manila, the Philippines, and run
for a period of two years. This is a full-time position.
The following reporting schedule will be followed by the Consultant:
Report
Date
To Whom
Inception Report
One calendar month from
commencement
PFMP
Activity Progress Reports
Quarterly from
commencement
PFMP
Final Report
End of assignment
PFMP
8. ASSUMPTIONS AND RISKS
For the successful implementation of the Activity it is assumed the below critical success
factors are in place. Risks associated with the successful completion of this Activity are
reflected in one or more of these assumptions failing to apply.
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
There is commitment, ownership and effective leadership for change management at
senior levels within DBM and spending agencies.

There is a willingness and capacity on the part of DBM to provide effective supervision
and support to the Activity, and ensure resources are provided as required on time.
9. RESOURCE CONTRIBUTIONS
DBM and DepEd will provide office space and access to computer network, internet and
telephones; use of conference/training/meeting rooms and related expenses as required;
and travel/per diem expenses of counterpart staff in cases of any field activities arising
from the Activity.
PFMP will provide all other resources as required by the Consultant.
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