Slide 1
Ministry of Finance and Planning, Jamaica
Managing Change for Improved Service Delivery
InnovativelyBehavioural Insights based Institutional Design: A
Ministry of Finance and Planning, Jamaica Perspective
Trudy-Ann JAMES LINTONDirector, Strategic Organisational
Development Ministry of Finance and Planning, JamaicaDr Elsie
LAURENCE-CHOUNOUNEDeputy Resident RepresentativeUnited Nations
Development ProgrammeJamaica, Bahamas, Bermuda, Turks & Caicos
and Cayman IslandsThe UNDP Innovation Facility (SHIFT) Ankara,
Turkey 23 25 September 2014
11AgendaThe Jamaican Context
The MOFP Context
The Change Partnership: UNDP and MOFP Jamaica
Applying Behavioural Insights based Design Thinking to MOFP
Transformation
2
3
Largest English speaking country and 5th Largest Economy in the
CaribbeanApproximately 2.7 million peopleUpper middle income
statusHuman development index middle of the table of 187 countries
(79 in 2011)Regional Per Capita Income: 19th Gross Domestic Product
(GDP): US$11.4BAverage Real GDP Growth: 0.9% Abundant
ResourcesBauxite, limestone, good quality waternatural beauty
(sand, sea and sun), diverse culture, PeopleBob MarleyUsain
Bolt
34
Vision 2030 JamaicaJamaica the place of choice to live, work,
raise families and do business.
Vision 2030 Jamaica
5The focus for the MOFP are National Goals 2 and 35
Our Reality6
Declining Ranking on Doing Business ReportDeclining ranking in
Human Development Index 966
The Ministry of Finance and Planning, Jamaica: Where we are
nowEconomic Reform Programme (ERP) well underwayStandby Agreement
with the IMF in placeEconomic Programme Oversight Committee 7Public
Financial Management Reform action planMOFP Strategic
ReviewEconomic Reform Programme (ERP), an initiative designed to
reduce the national debt burden, promote fiscal discipline,
increase revenues, improve efficiency in its operations and the
implementation of key reforms namely in the public sector, pensions
and taxation.
ERP Key Components include:Tax Reform, Public Sector
Transformation, Pension Reform, Debt Management, Central Treasury
Management System, and Corporate Governance.
Four-year Extended Fund Facility (EFF) with International
Monetary Fund (IMF):Designed to achieve a number of economic
reforms aimed at creating conditions for sustained growth through
significant improvements in fiscal operations, debt and
competitiveness. Imposes serious expenditure restrictions on
Jamaica that constrain spending even on social programmes and limit
fiscal space. GoJ to accelerate the modernisation and restructuring
of the Public Sector to make it leaner, more efficient, flexible,
responsive and accountable, which, in turn, demands a radical
restructuring of established organisations and systems, including a
review of their mandates, introduction of incentives, development
of an accountability framework, decentralization of authority and
rationalizing the organizational culture.
MOFP Strategic Review concluded in 2013 is part and parcel of a
radical restructuring of established Public Sector organisations .
Strategic Review identified several challenges:Ministry not
organised around creating value 22 direct reports to FSPerceptions
of empire building and silo working Fragmentation of policy and
research functions
Public Financial Management Plan
EPOC - comprises 11 representatives from the private and public
sectors, civil society, and trade unions, who review Government
reports on the progress of implementing the Memorandum of Economic
and Financial Policies (MEFP)over the life of the IMFs US$958
million four-year ExtendedFund Facility (EFF), which supports the
countrys Economic Reform Programme (ERP).
Its role also includes assisting in ensuringthat the agreed
targets are achieved, as well as advising the public, through the
media, of any concerns or developments.
The Committee monitors the implementation of Jamaicas economic
reform measures.Managing Director, Christine Lagarde, called it a
display of real innovation by the administration June 27 concept is
indicative of multi-sectoral ownership of, and support for the
programme.monitoring of the economic reform programme reform by an
outside groupis something that I have never heard of, (and) that
none of my staff at the IMF had heard of.welcomed the concept,
pointing out that when those reforms are conducted you want
complete ownership and support to be given (to the Finance
Minister).This is clearly amodel, going forward, And it is one that
will, from my point of view, be duplicated and encouraged in many
other programmes going forward,
7MOFP Transformation Programme
Realigned Organisational StructureCustomer Centric Service
OrientationHigh talent workforce in a learning
organisationTechnology-enabled Improvement of Critical Business
ProcessesA Centre of Excellence, 201788Rethinking Change
Management9Insanity is doing the same thing over and over again and
expecting different resultsIf you always do what youve always done,
you will always be where youve always been
In addition to these internal staffing issues, more general/
industry risks:
challenge to implement comprehensive tax reform within the
planned timeframe due to institutional capacity limitations in the
MoFP, maintaining fiscal consolidation, public sector restructuring
and implementation of new accountability measures over an extended
period of time despite strong oppositions from the population,
labour unions and public sector workers.
Whats the solution? Radical Change Management.
One Initiative: Partnering with UNDP to reap benefits of
BE/BI.9UNDP ADDED VALUE10UNDPs overall mission is about bringing
change. Jamaica and UNDP have partnered in these areas and have
realised success. Now MOFP will seek to do the same by focusing on
technical assistance to develop BE/BI capabilities across its
operations and embed in its culture.
Elaborate on the process of Change Management in UNDP for the
past 2 years, etc. to lead into applying BE/BI to MOFP
Transformation.
UNDP technical assistance will result in the following
deliverables:Culture Assessment AnalysisBusiness Process Analysis
external and internalExternal focus on relationship between MOFP
and citizensInternal focus on employee recruitment, engagement and
motivation ( all relating to change and culture management)Design a
change management strategy and planDesign a communication strategy
and planDesign framework for training of staff in change management
replication
End result develop MOFP as Centre of Excellence
10UNDP/MOFP Partnership11GOJ recognises UNDPs Capacity
Development niche that can goes beyond training and addresses the
organisations absorptive capacity and dynamic capabilities to
improve institutional systems, structures and processes to increase
performance, stability and adaptability.
MOFP has sought UNDPs support for technical assistance in change
and culture management capacity development of the Ministry.
UNDP researched the best technical expertise on change
management using BI
Better understanding culture assessments and clear
identification of technical and administrative areas of operations
that can benefit from behavioural insights to influence change
instrument design.
11Value Proposition of UNDP/MOFP Partnership12Value Proposition
of UNDP Jamaicas /MOFP PartnershipUNDP Jamaica is planning to
provide technical assistance in the design and implementation of a
strategic behavioural change management programme based on
behavioural insights and design- thinking, to improve service
delivery in the Ministry of Finance and Planning.
SIDs Small Island Developing States
It is atypical for UNDP to work in such a close partnership with
the Ministry of Finance; it provides opportunities to replicate
this model in other countries including through south-south
cooperation and in line with UNDPs recent HDR - Sustaining Human
Progress: Reducing Vulnerabilities and Building Resilience.It will
allow us to walk the talk of HDR recommendations while providing a
precedence to change the way UNDP conducts business worldwide.This
is critical to advance UNDPs mandate in Jamaica, increase UNDPs
ability to deliver and anticipated to enable the implementation and
funding of pertinent projects and programmes aligned to its
strategic priorities including exploring options for UNDP to
directly facilitate delivery of grant funded projects for the
Government, where possible. Issues linked to fiscal space
constraints continue to impact service delivery at various
Ministries and adversely affect delivery of social programmes,
including that of UNDP that in turn lead to increased social
fragmentation and crime. Partnering the Ministry of Finance in this
important endeavour is a significant accomplishment for UNDP, as it
will enable us to transform programme delivery while becoming an
integral actor in the field thus far dominated by the Banks and
IMF. The time is ripe for UNDP to nudge itself at this
transformational level that while significantly enhancing its
visibility aims to create an excellent value proposition for change
implementation for the Government. In addition to reducing
operational expenditure of the MoFP, the Transformational Programme
will also enhance revenues received by the Government through the
application of behavioural insights to tax collection and
compliance.
12Change Management Predicting Human BehaviourTRADITIONAL VIEW
OF HUMAN BEHAVIOUR However, this Perspective Fails To Explain And
Predict A Large Proportion Of Behaviour And
Decisions.1313Introducing Behavioural Economics /Behavioural
Insights to change management
http://www.youtube.com/watch?v=XH_Bzxp8-dA&sns=em14The
hallmarks of the Behavioural Insights Team's methodology:
Applying policy interventions informed by the growing body of
behavioural research, together with rigorous testing and trialing
based on a rich understanding of the context in which a policy is
being delivered.
BIT Team out of the UK Prime Ministers Office.
Draw on insights from behavioural sciences to gain a deeper
understanding of how people behave in reality rather than how
economists and policy makers think they will Then design and
implement interventions to encourage or discourage certain
behaviours and empirically test the impact of those interventions
usually using Randomised Controlled Trials
Designed a series of trials to decrease absenteeism and increase
productivity using behavioural insights and non-monetary
incentives.
14
What is Behavioural Economics (BE)/Behavioural Insights
(BI)?NormsDefaultsSaliencePrimingIncentivesAffectCommitmentsEgoMessengerInfluencing
Behaviour The MINDSPACE Way15Influencing Behaviour - The MINDSPACE
way
The usual route to behaviour change in economics and psychology
has been to attempt to 'change minds' by influencing the way people
think through information and incentives. There is however,
increasing evidence to suggest that 'changing contexts' by
influencing the environments within which people act (in largely
automatic ways) can have important effects on behaviour.
The acronym MINDSPACE looks at 9 of the most robust effects that
influence our behaviour in mostly automatic (rather than
deliberate) ways. In other words, thinking about the effects on our
behaviour that result from contextual rather than cognitive
influences.M -Messenger: We are heavily influenced by who
communicates information to us
I - Incentives: Our responses to incentives are shaped by
predictable mental shortcuts such as strongly avoiding
lossesN-Norms: We are strongly influenced by what others do
D-Defaults: We 'go with the flow' of pre-set options
S-Salience: Our attention is drawn to what is novel and seems
relevant to us
P-Priming: Our acts are often influenced by sub-conscious
cues
A-Affect: Our emotional associations can powerfully shape our
actions
C-Commitments: We seek to be consistent with our public
promises, and reciprocate acts
E-Ego: We act in ways that make us feel better about
ourselves
15Applying BE/BI: Practical InsightsTo encourage behaviour
change, make it EAST:Easy, Attractive, Social and Timely.
'Change Minds by Changing Contexts' Easy
AttractiveSocialTimely16If you want to encourage a behaviour, make
it Easy, Attractive, Social and Timely (EAST)
1. MAKE IT EASYHarness the power of defaults Reduce the 'hassle
factor' of taking up a service Simplify messages
2. MAKE IT ATTRACTIVEAttract attention Design rewards and
sanctions for maximum effect The use of lotteriesFocusing on the
scarcity of a product or service. Drawing attention to self-image.
'Gamifying' activities
3. MAKE IT SOCIALShow that most people perform the desired
behaviour Use the power of networks Encourage people to make a
commitment to others
4. MAKE IT TIMELYPrompt people when they are likely to be most
receptive Consider the immediate costs and benefits Help people
plan their response to events
Applied BE/BI - KEY POINTS:DEFINE THE OUTCOME - Identify exactly
what behaviour is to be influenced. Consider how this can be
measured reliably and efficiently. The important thing is to ask
constantly: what change are we trying to achieve?
UNDERSTAND THE CONTEXT - Visit the situations and people
involved in the behaviour and understand the context from their
perspective. Use this opportunity to develop new insights and
design sensitive and feasible interventions.
BUILD YOUR INTERVENTION - Use the EAST framework to generate
your behavioural insights as well as MINDSPACE which is a summary
of a range of behavioural effects. The experience of building the
intervention may lead you to reconsider the feasibility of the
outcomes defined.
TEST, LEARN, ADAPT Put interventions into practice so its
effects can be reliably measured.
By enabling us to demonstrate just how well a policy is working,
RCTs can save money in the long term - they are a powerful tool to
help policy makers and practitioners decide which of several
policies is the most cost-effective, and also which interventions
are not as effective as might have been supposed. Doing this is
especially important in times of shrinking public sector
budgets.
16Applied BE/BI: Practical Insights in Context1717Linking BE/BI
to Public Administration
BE/BI: An Invaluable ToolKey insights into the psychology of
behaviour motivations
Low cost/ low pain option for curbing or motivating
behaviour1818Applied BE/BI and Design Thinking19MoFP regulates and
monitors public policy relating to the management of public
finance
BE Techniques can be applied to increase success levels in the
following areas:Productivity and performance of the MoFPEmployee
EngagementTransformation of the MoFP to A Centre of Excellence by
2017Activities associated with increasing compliance with fiscal
and financial management rulesTax Compliance Management
Design thinking is a blend of empathy, creativity and
rationalization and aims to develop technologically feasible
solutions that match peoples needs. It is an approach that allows
solving multi-dimensional problems, letting individuals and
organizations to improve their problem-solving capacity. Empathy
defines comprehension of the user need and/or the context of the
problem for which a solution is being sought. Creativity is the
basis of potential solutions encouraging stepping outside of the
obvious. Rationalization leads the development of a physical
response to the problem after analysis of the various
solutions.
The Capacity Building component of the Transformation Programme
will focus on building capacity of the MOFP for Change and Culture
Management with the ultimate vision of becoming a High Performing
Organisation and by extension a Centre of Excellence. This will
include, but not be limited to, the development of appropriate
training programmes targeting MOFP staff at all levels particularly
in change management. This Component should lead to an improved
understanding of the needs and behaviour of employees transitioning
within macro-level organisational change and to promote
transformation programme activities across MOFP. It should also
lead to the development of an action plan to promote the Centre of
Excellence ethos through the provision of training sessions and
other interventions on leadership management, values, governance
and marketing, and activities (such as networking, and mentoring),
as well as stakeholder and client sensitisation sessions.
19Design-thinking model (adapted from Stanford art institute)20)
Empathize (for example by undertaking of a Culture Assessment to
understand the situation and the experience of the Ministrys
staff);2) Define (for example by identifying technical and
administrative areas of operations where behavioural insights can
be applied);3) Ideate (for example by exploring possible solutions
in the development and implementation of the change management
plan);4) Prototype (for example by transforming the ideas generated
to an actual change management strategy and plan);5) Test (for
example by trying out in MoFP change management tools and ICT
products that are refined through feedback and observations and
replicated to other Ministries).
20Applying design-thinking through be/bi
21EmpathizeDefineIdeatePrototypeTestRefine/replicateIn particular,
the following activities will be executed under this project and in
line with the design-thinking model (advocated by the Stanford Arts
Institute):1.Conduct Culture Assessment;2.Identify and recommend
technical and administrative areas of operations where behavioural
insights can be quickly applied;3.Develop and implement Change
Management Strategy and Plan;a)4.Develop and implement
Communication Strategy and Plan;5.Develop a framework that will
facilitate the implementation of the Change Management programme to
other public bodies;6.Build the capacity of MOFP staff and selected
persons to enable them to replicate the programme to other public
bodies.
21Applied BE/BI in the MOFP Transformation ProgrammeValue Added
to ...22Value to be accrued to our three VIP Publics.22
BE/BI Applied Intervention Success @ MOFPBE/BI Model for
Jamaican Public Sector RenewalUNDP Model for similar Public Sector
Interventions in SIDS and MICS 23Success @ MOFPBE/BI Model for
Public Sector TransformationUNDP Model for similar Public Sector
Interventions in SIDS and MICS
23
Nonetheless, change is constant, and we must all find a way to
transition, cope and reflect if we are to survive as an
organisation. To change is difficult; not changing is fatal.
Lewins Unfreeze-Change-Refreeze analogy.
Internal Transitions PROSCI perspective24In closing
When was the last time you did something for the first time?
Author Unknown25Old ways wont open new doors
Author Unknown
EITHER THIS OR THE PREVIOUS SLIDE.
25Dont Worry About a ThingBob MarleyExodus, track
91977Reggae180019.55null233314.55