Case study
Volunteers for economic Growth AlliAnce (VeGA)
Capacity Building and Change
Management Program
International assistance to the Ministry of agriculture in afghanistan has been a long-term and diverse set of relationships and techniques for improving management and technical capacity. One early effort was the program in the 1940-50s in Helmand province where the goal was to develop an irrigation and hydropower system based on the experience of the Water Reclamation Project in California, at the behest of the King, who had funds from a positive balance of exports at the end of WWII. another massive program of fruit crop plantations that can be seen from earth images of Nangahar Province was supported by the Russians during the 1990s. a catalogue of international projects would be massive. through war and peace the Government of afghanistan (Goa) has sought technical assistance and also financial support from the international community for the development of agriculture. as is commonly cited by the Minister, donor agencies and implementing organizations -when describing the economy of afghanistan - approximately 80% of the population depends directly or indirectly on the agricultural sector. the importance of this sector for food security and exports is the key to establishing the confidence of the people in the government and, hence, is a key development effort on the way to peace.
For the last 35 years afghanistan has been a nation in conflict. Irrigation systems were destroyed, orchards were abandoned, infrastructure for transportation and storage were destroyed, seed production and genetic
material were lost, there was an exodus of skilled personnel, disorder in the education system, and a considerable lack of fiscal support for the Ministry of agriculture. However, in spite of the continued conflict, the GoA and donors have had renewed interest in capacity building for the ministries. In 2008, the Government of the Islamic Republic of afghanistan (GIRoa) released the afghanistan National Development Strategy (ANDS) for the following five years that placed great importance on the agricultural sector and responsibility upon afghanistan’s Ministry of agriculture, Irrigation, and Livestock (MaIL) to serve that sector. Following the release of aNds, a new
Background and IntroductIon
Volunteers for economic Growth AlliAnce (VeGA)
Capacity Building and Change
Management Program
By: Kris Merschrod
Minister of agriculture took up the cause with enthusiasm. shortly thereafter, the Ministry released an overarching plan calling, specifically, for change management. In April 2009, the MAIL team proposed a draft “Change
Management, Public sector development and Programme support Framework” that was the result of internal reflections on the needed changes since 2007. Donors responded in quick succession, as shown in table 1. For
a description of the programs and agencies listed in this table, view Annex A.
thus is the brief sketch of the context into which the subject of this case study, CBCMP, began its work and, in turn, impacted the way that donors and implementing agencies interact with the MaIL. the key points to be made from the beginning, should this effort be replicated, are:
■ the government laid out a vision and a general plan; the program was designed in response to that plan; ■ Government leadership came in the personality of a new, innovative Minister specifically asking for a
complete transition from a traditional line ministry to a dynamic institution prepared to meet the challenges of the 21st Century;4 and
■ The call for “change management;” the subject of this case study. But before describing the lessons learned that could be used for the replication of this model of public sector strengthening, the overall impacts will be described to show the reason for doing this case study.
IMPact
the goal of the CBCMP was that the MaIL would be transformed from a traditional line ministry to a dynamic institution prepared to meet the challenges of the 21st Century. two overall objectives for this transformation were that:
■ there is increased capacity within the MaIL to efficiently manage funds from both the Ministry of Finance and increased confidence on the part of international donors. the indicators are the increased amount of funds managed per year and evidence that donors are using the on-budget mechanism;5 and
■ MaIL would increase management capacity to provide services to the directorates of agricultural, Irrigation and Livestock offices (DAILs) so that requests and proposals from the daILs are
processed and funded quickly to serve the sector in the field. The indicators are: percent disbursement of MaIL’s development assistance budget to sub-national levels, number of applications for service delivery across target directorates and daILs, and the number of Coordination events held in daILs. These indicators were tailored to the specifics and vision of MaIL that was held when CBCMP was designed.
Successes of the cBcMP
the successes are described in this case study for the purpose of indicating the importance of the work done during the CBCMP and to justify studying the lessons learned.
Success: Increasing the accounting capability.
The first indicator,6 in relative terms, was the rate of budget execution: in 2010-11 it was 25%; in 2011-12 (the first year of CBCMP) it was 56%; Estimates based in the first nine months of 2012-13 execution rates will raise to 68%. In absolute terms, from the first full year of CBCMP effort, the total of funds managed by MaIL increased from $205 million in 2010 to $243 million in 2012. It is estimated7 in FY 2013 that $237
million will be managed by MaIL. a second indicator of success was progress made toward remedying the 23 observations that the accounting firm of Ernst and young8 made in reference to the generally accepted accounting practices that guide the assessment of international accounting systems. The first 19 observations were remedied during the second year, and by the end of the third year changes were made so that all 23 observations were completed.
a third indicator, gaining the trust of the u.s. Government (usG) for managing on-budget funds was that when the u.s. agency for International development (usaId) designed the agricultural Research and development (aGRed)9 and Irrigation Watershed Program (IWMP) programs and the u.s. department of agriculture (usda) designed the afghan agriculture extension Program (aaeP)10, they included in the request for application and agreements that on-budget funds would complement the direct funds to the implementers.
Success: Establishing a Grants Management Capability.
Prior to working with MaIL, successful international donor programs established grant management units outside of the target ministry staffed by employees of the donor.11 these efforts had the advantage of implementing systems with selected employees for the control and management of funds, but they were not efforts to build capacity in the ministry of interest. In the case of the MaIL, it was decided that the capacity to manage grant funds should be an integral part of the CBCMP effort so that project planning and funds management would work together. In this way, the grants management capability would be part of the Ministry. Personnel from the Ministry of Finance (MoF) were embedded in the directorates of MaIL so that MaIL personnel would learn how to design proposals and budgets that would meet MoF standards to avoid the back and forth of submissions across ministerial boundaries.12 this is demonstrated in figure 1. additionally, by establishing this internal capacity, MaIL would be in a better position to make proposals and gain direct access to donor on-budget funds.
figure 1: initial integration of the Asia foundation (tAf) - mof supervises personnel in Directorates of mAil, enhancing capacity within MAIL and facilitating communication. During the CBCMP phase, this integration was fortified with change management specialists.
another indicator of changes in grants management capacity comes from two audits (mid-2011) by the international accounting firm of Ernst and Young. The Firm provided the observations or changes needed and CBCMP guided this process. By the end of 2011, 25 of the 37 recommendations had been addressed and by the third quarter of 2012, 33 of the recommendations had been addressed. as shown by the trends in table 2, donor
on-budget funding increased each year - as did MoF funding - showing increased donor and MoF confidence in the changes. the decline in direct donor funding while increasing on-budget funding shows that the intent of the 2012 tokyo Mutual accountability Framework is being implemented.
table 2: Donor on-Budget funding increases
Success: Coordination with the Civil Service Commission.
One of the needs to modernize MaIL was a cadre of new job definitions and salary scales that would attract talented professionals as well as support the new vision. CBCMP facilitated coordination between the Civil service Commission and MaIL and provided CMss and training to prepare job descriptions for the personnel needed after going through the four-step participatory change method for departmental reorganization13. this human resources effort, plus the work of the strategy of embedding CMss in the departments, is probably the reason for the high levels of satisfaction of civil servants with supervisors and MaIL management in general.
Success: Building Solidarity - A Sense of Trust in the MAIL Management.
the process of change of structural and style of management of a bureaucracy the size of MaIL always causes stress because some executives and employees resist new roles and responsibilities that make for uncertainty and insecurity. the introduction of new personnel, such as CMss, and new positions can change the relationship with immediate supervisors. trust in the senior management can also change.14 theoretically, the participatory change management used can empower and intra-netting can increase the sense of belonging across directorates. However, it can also be destructive if not done well. the CBCMP was constantly training and facilitating interaction around these changes. In addition, the Minister and deputy ministers constantly provided legitimacy for change.
table 3 of two scales of trust and confidence show that
after two years more than two thirds of the personnel agreed that trust/respect had either improved or very improved over the previous year.15
Based in the indicators presented above the CBCMP is, after only three years, a successful example of organizational change and strengthening of a major public sector bureaucracy.
INNOVATION AND LOCAL CAPACITY DEVELOPMENT (LCD)
LCd was the intention of the CBCMP. the purpose was to transform a line ministry into a dynamic institution. Part of the definitions of “line ministry” and “dynamic institution” were revealed in the 2009 MAIL change management concept paper, taF documentation, usda request for applications16, and in the response that IesC proposed in the leader with associates (LWa) technical proposal. Nevertheless, one has to read between the lines and refer to organizational development literature to appreciate the change implications in terms of structure and style of management. Basically the term “line ministry” refers to a vertically structured organization using a centralized command style of management, as described by Max Weber, or termed a mechanical structure by emile durkheim. When one reviews the MaIL concept paper, the usda request for application, and the IesC technical proposal- and then looks at the chronology of the activities that were implemented - it is clear that the desired structure and style of the transformed Ministry would have the following characteristics: organic - that is -horizontal, participatory, and decentralized in decision making; intra-netted so that information and coordination flows between directorates and does not depend upon the flow of information and decision making to the top and then down again; and, importantly, engaged in a constant process of assessment and review of departments and processes with the goal of change for efficiency. Although not expressed in these terms in program documents, it is evident in the implementation of the CBCMP to achieve the new vision.
the methodology used to bring about the change in style and
structure consisted of a series of techniques in training and hardware that constantly reinforced intra-netting and building interpersonal relations to increase the efficiency espoused by the overall vision. One of the means to these changes was to employ CMs to work with and mentor civil service personnel in the directorates of MaIL. taF began the employment of change agents during that phase of
the LCd and some of those change agents continued on during the CBCMP phase. Instead of the short-term technical assistance typically employed in development projects, the change agents were local professionals who were trained in the role of being a change agent and mentor.17 thus the CMs brought into MaIL a specialty. More importantly, though, their role as an agent was to foment change and build the confidence of the civil service (Cs). Moreover, the Minister and deputies supported this role to bring about change. throughout the duration of the CBCMP, workshops were routinely held. Change agents and the civil service counterparts were drilled in their respective roles. this allowed facilitation and legitimization of the time that they spent working together as well as support for change.
CBCMP had an approach called the Four Pillars18, a scheme where the participatory change process was laid out for CMss and Cs personnel. The first chores for all directorates, once the change agents were placed, was to assess the directorate or department in terms of the processes for decision making, the steps that requests
Instead of the short-term technical
assistance typically employed in
development projects, the change
agents were local professionals
who were trained in the role of
being a change agent and mentor.
This type of planning for change
that engages people to come up
with their own solution is known to
build ownership and commitment
to change.
own solution is known to build ownership and commitment to change. as will be shown later, it also builds trust in leadership and satisfaction with senior management in the work place.
Quarter after quarter, the important aspect of training overall has been the constant training for Cas and Cs employees and, importantly, workshops involving both Cs and CMss together explaining the role and
expectations of each – that is, how their relationship should be worked out. then, on top of that, the Css and Cas were involved as teams in the Four Pillar method in a very bottom up approach to analyze the structure, ability, and skills needed to achieve increased efficiency and capacity. This is an important part of the intra-netting aspect of the CBCMP.
Interpersonal intra-netting or social networking through meetings is important. to facilitate that style of management, hardware, such as cables, servers, Wi-Fi, and terminals as well as contracts with the afghan telecom industry were needed. software systems for these networks included: time Keeping and attendance, automated Workforce Management system (OrgChart Plus), and the Financial Management Information system. CBCMP started in the central MaIL directorates and the system was extended to the daILs. In the training of the It personnel, once again Cas and Cs personnel were teamed and across directorates. this inter-departmental training helps people to grasp and feel that they are part of a ministry-wide vision for change.
although alluded to in the descriptions above, the methods and techniques needed to replicate the results of the CBCMP are described in the following lessons learned.19
LeSSonS Learned
the twelve lessons listed below, when applied as an integral approach for reforming a large bureaucracy, may be used to replicate the results that CBCMP has had. Caution is advised because some of the lessons are actually preconditions for change; they do not form a checklist but, instead, a process that requires constant nurturing. the sustainability of the reforms will depend upon how well the overall change culture is maintained.
1. a vision for change is a necessity for program design and implementation;
2. enthusiastic leadership committed to change from the beginning provides vision and legitimizes change;
3. advisory boards of stakeholders are necessary to ensure that plans and strategies have the full support of stakeholders;
4. Having project team (CMss) embedded within the bureaucracy builds rapport and teamwork; 5. Linkages between independent ministries increase efficiency;
6. Facilitating linkages with donors builds confidence;
7. Working with the Civil Service Commission helps ensure that new positions are codified; 8. decentralized and participatory assessment, correction, restructure, and the score card system
deliver change by commitment and analysis (the Four Pillars strategy);
9. systematic and constant training that involves the spirit of change as well as technical aspects creates satisfaction as well as efficiency;
10. Recruitment of local professions for medium term CMss is more economical and effective than short-term technical assistance. the same applied to senior Provincial Management specialists; 11. Infrastructure to facilitate intra-netting is a necessity; and
concLuSIon
IESC was able to field the personnel with the ability to apply techniques and managerial systems to implement a vision provided by a dynamic minister. as shown by the results indicators above, substantial progress has been made toward the immediate efficiency
objectives as well as changing the structure and style of management and accompanying culture of change. the lessons learned provide an extensive list of conditions, techniques, and methodologies that have been employed, but they do not form a checklist because they are activities and managerial processes that must be constantly nurtured in order to sustain a culture of change.
One must be cautious because although many
advances have been made, such as the record of funds management; intra-netting; links to the daILs; and the satisfaction of employees, it has only been five years in the making and the results at the field level – such as provincial management - are yet to be seen. The field changes are really intended to be the result of other programs such as aaeP, asaP, IWMP, and aGRed.
It should be pointed out that this approach would not automatically work if the nature of the goal or vision were, for example, downsizing, austerity, or privatizing of a ministry because resistance to change would probably thwart change efforts as directorates attempt to conserve their existence. In the present case the vision was upbeat and expansive where personnel could see a future for improved and expanded departments.
anneX a: tHe PrograMMatIc and donor conteXt oF tHe cBcMP
AsAP (Accelerating sustainable Agriculture) - united states agency for International development (usaId)
Funded; Implemented by Chemonics; Focused on field operations: extension, experiment stations, exports, public land management, relations with NGOs, and Provincial Reconstruction teams (PRts), established by the u.s. military with civilian expertise and usaId. asaP was doing work that MaIL could have done directly, but, instead the usaId contractor implemented the activities and just included MaIL as a participating partner. It was not a program to change management.
AfsA (Afghanistan farm service Alliance) - usaId Funded; Implemented by the Citizens Network for Foreign
affairs (CNFa); the purpose was to work with private farm service centers selling agricultural inputs such as fertilizers, pesticides, seed, and other services to Afghan farmers to improve their profitability. Again, not a project to change the management of MaIL.20
cm i (change management Program i) - the u.K. department for International development (dFId), the
australian agency for International development (ausaId),the Canadian International development agency (CIda), and dutch Funded; Implemented by taF; Focused on change management of MaIL directorates using Change agents teamed with Civil service methodology; It infrastructure; Few activities continuing into 2011; It was intended to be first phase (the planning & design phase) of a lengthy organizational change program for
then with Provincial Offices. A major goal was to prepare MAIL to receive on-budget funds, as opposed to outside donor specified activities, from the U.S. government. The on-budget preparation was important for later USAID and usaId programs as well as non-usG donors.
cm ii (change management Program ii) - dFId and ausaId Funded; implemented by atOs Consulting;
Focused on support for the MaIL Policy and Planning directorate. this project only seemed to last six months or so and then ended. It is not clear what caused the end. Nevertheless, CBCMP agreed to coordinate with them when they started.
AGreD (Agricultural research and Development) - usaId funded; Implemented by Roots of Peace; the
purpose is to strengthen extension delivery systems at the national, provincial, and district levels by providing training (formal and on-the-job); coordinating and supporting research and extension interventions; and monitoring their outputs, progress and impacts in seven target provinces and 50 target districts. In addition to program specific funds, AGRED has provision for, and a need, for channeling additional on-budget USG funds.
AAeP (Afghan Agriculture extension Program - usda funded; implemented by u.C. davis with Purdue,
Washington state university, and the university of Maryland; the purpose of these land grant universities is to provide technical training to put new procedures and approaches to extension into practice; the agreement between usaId and aaeP does not specify on-budget usG funds, but aaeP, with CBCMP training is preparing daIL personnel for that eventuality via a grant fund as practice for making application for on-budget funding.
iwmP (irrigation watershed management Program) - usaId Funded; implemented by Perini Management
services, Inc.; the goal of the IWMP is to expand and enhance afghan government and community-level capacity to manage water resources to improve agricultural production and productivity. this usaId program will also depend upon the on-budget mechanism that was made possible with the capacity building of MaIL. MaIL will directly receive up to $100 million in on-budget funding support to design, execute, and monitor activities that complement work being done by the IWMP implementing partner.
usAiD (united states Agency for international Development) - as indicated in the cases of usaId projects
above, the us government began to prepare for using the on-budget mechanism. the mechanism was one of the capacity building goals for CBCMP.
world Bank - as part of the donor meeting in Japan where the 50/50 target for the on-budget mechanism was
established, in 1913 signed a memorandum of understanding with the MoF and the Civil service Commission for the implementation of a “Change Building for Results” (CBR) program that will fill over 300 positions in MAIL over the next five years. In its close out transition CBCMP will work with MAIL to select personnel. CMS personnel will be selected for those positions. It is notable that MAIL is the first ministry to participate in the CBR and the CBCMP has been credited with making this possible.21
endnoteS
1annex a has brief descriptions of the programs and agencies listed in this table.
2this is not an exhaustive list; it is a list of u.s. Government and other donors related to the change management approach or outcomes. It illustrates that the
CBCMP has not been isolated nor has been the only change program in action.
3at the time of reporting the precise projects supported with this mechanism are not known, only that these agencies were working toward the mechanism. 4MAIL, April 2009, “Change Management, Public Sector Development and Programme Support,” p.5
5On-budget funding is the channeling of donor development assistance through the recipient country’s core budget. thus, the amount of or the initiation of
on-budget funding is an indication of donor confidence in MAIL. CBCMP’s goal was to build the grant management capability into MAIL as described in this case study.
6some of the indicators used herein are from the PMP, but many indicators are tailored to this case study and focused on qualitative as well as quantitative
evidence of change management.
7Preliminary data provided by the IESC M&E Coordinator via email November 2013.
8In 2011 the Special Inspector General for Afghanistan Reconstruction (SIGAR) commissioned Ernst & Young to conduct an audit of MAIL. A follow-on audit
was completed in 2012 to assess the results. Results against the audit as noted in this study are based on program and donor assessments and not on sIGaR reporting.
9USAID, (http://agred.af/) as downloaded on 11/8/2013. “USAID Implementation Letters (ILs) will provide on-budget funding for MAIL and DAIL research and
extension activities once MaIL has met initial conditions precedent. the ILs will be issued in response to MaIL’s research and extension work plans, developed in consultation with farmers and agribusinesses. ILs will also address the results of assessments conducted by usda’s aaeP and CBCMPs, as well as aGRed’s assessments of human and institutional capacity gaps research infrastructure needs.
10as of November 2013, the on-budget mechanism had not been added to the aaeP agreement. However, at the time of publication, aaeP is training the daIL
partners to do proposals for grants; in preparation for the on-budget mechanism should it become available.
11the rapid start-up and expansion of the Ministry of Health (MoH) is one such example. Recently the integration of the Grants Management unit (GMu) into the
MoH has begun.
12TAF had placed 25 change agents under the direction of the Deputy Minister of Finance & Administration - not in MAIL - but the pattern of inter-ministerial
communication was the important structural arrangement.
13CBCPM described a “ Four Pillar” approach to participatory planning: 1) process mapping; 2) Organizational Structure Realignment; 3) score cards; and 4)
Incorporating changes into the annual workplan.(CBCMP Quarterly Report, January 1 - March 30, 2012, p.13)
14Both taF and CBCMP reports indicate that there was resistance to change on the part of employees, supervisors, and directors. However, this was broken down
by dialogue, training, and when needed, by the Minister’s moral suasion.
15In February 2013, CBCMP conducted an opinion survey of a sample (n=196) of MAIL employees. There were 18 questions formatted in the sense of “compared
to 12 months ago” how are aspects of trust and confidence or working conditions. The responses to those questions were analyzed by the author of this case study using factor analysis (Varimax rotation) and were found to form two scales of four or five questions each. One scale is related to the immediate supervisor and the second scale is related to the senior executive level of management. the reliability of the two scales was also tested and found to be reliable (Cronbach’s alpha is > .80). the questions were Likert-type (1-5). the data from these two scales was used to reach the conclusion as shown in table 3, that is, the percent of the interviewees responding to each of the five points on the scale.
16Request for applications are a general call by the usG for proposals meeting published requirements. 17during the course of CBCMP over 1,000 Cs personnel were mentored by CMs (Indicator #3.5)
18the Four Pillars are: process mapping, organizational structure realignment, score Cards, and, the annual work plan. 19CBCMP is preparing a manual based on their experience. this will be an invaluable reference.
20The mid-term evaluation by Chechi pointed out that AFSA did not interacted with potential partners, such as the MAIL or the DAILs; its purpose was in the field,
similar to asaP and not to build capacity within MaIL. Chechi, (september 2011, P. vi).
21IESC “Capacity Building and Change Management Project Weekly Report to Minister Counselor Robin Tilsworth” of the Weekly Report of November 29, 2013.
autHor: krIS MerScHrod
Kris Merschrod began his career in evaluation research in the early 1970s when he was one of the early
practitioners of multidisciplinary teams using both qualitative key informant methods and sample survey methods to triangulate multiple levels of analysis (individual with community, group, organizations, and socio-economic context). these methods determined the interactive effects of development programs on the individual as well as the structure of communities and organizations. during his career, his evaluation and design work has included: production chains, marketing, agricultural extension, comparative credit schemes, cooperative development, reducing violence against women, sustainable forestry, irrigation, and alternative development. some of his work has been published in international journals, and he has written reports and manuals ranging from baselines and descriptions of the Pukhtun of Pakistan to the organizational development of NGOs, participatory development, evaluation, and planning. Mr. Merschrod holds a Ph.d. in development sociology.