Management Information Systems in Local Government

12 Management Information Systems in Local Government Changing the dynamics of governance through ICTs S.M. Khatib Alam Nadir Ehsan Kashif Abbas

March 2008

Human Resource Management Information System (HRMIS)

Revenue Management Information System (RMIS)

Geographic Information System (GIS)

City District Government Faisalabad, Pakistan

This document is produced as part of the Strengthening Decentralised Local Government in Faisalabad (SDLGF) Project for the purpose of disseminating lessons learnt from the project. The views are not necessarily those of DFID or the City District Government Faisalabad (c) SDLGF March 2008 Parts of this case study may be reproduced for educational use, provided that such material is not printed and sold. The authors expect that, any material which is used will be acknowledged accordingly.

Layout & Designed at: FaizBakht Printers, The Mall, Jhang (Punjab) Pakistan.

VISION “Pre-empting Poverty, Promoting Prosperity”

MISSION STATEMENT “We will provide high quality services which compare with the best in the country. We will work with everyone who wants a better future for our District. We will establish an efficient, effective and accountable District Local Government, which is committed to respecting and upholding women, men and children’s basic human rights, responsive towards people’s needs, committed to poverty reduction and capable of meeting the challenges of the 21st Century. Our actions will be driven by the concerns of local people”

ACKNOWLEDGMENTS This case study is the culmination of efforts by a number of individuals from Government and the technical assistance team. Firstly it is important to thank all those who have cooperated with the team preparing this case study not only in the last few weeks but over the course of the last four years. They have been critical to the work and demonstrated what is possible to achieve in Government when the right set of conditions prevail.

We would also like to thank the communities and elected representatives of the district that assisted the SPU team in implementing this project and its various components.

The authors wish to thank Rana Zahid Tauseef, City District Nazim; Maj (Retd.) Azam Suleman Khan, District Coordination Officer; and Dr. Tariq Sardar, EDO Finance & Planning for their valuable contribution in making this project a huge success.

We are thankful to: Ch. Zahid Nazir, ex-District Nazim Faisalabad; Mr. Tahir Hussain, exDCO Faisalabad, Mr. Athar Hussain Khan Sial, ex-DCO Faisalabad and Mr. Asad Islam Mahani, ex-EDO Finance & Planning Faisalabad for their valuable contribution to the success of this project.

We are further thankful to all CDGF employees (past and present) and CDGF partner departments but we would like to specifically mention by name the following: Mr. Ashiq Hussain Dogar, EDO IT; Mr. Mumtaz Hussain Shah, EDO Education; Mr. Shabbir Ahmad Ch., EDO Community Development; Mr. Rana Farman Ali Khan, EDO Agriculture and Dr. M. Javed, EDO Health for their efforts in successfully implementing reforms in their departments.

We are thankful to all DFID Project Advisers and Management that have assisted in this project since its start and we would like to specifically thank Mr. Mosharraf Zaidi, Governance Advisor, DFID Pakistan; Mr. Wajahat Anwar, Deputy Program Manager, Accountability and Empowerment team, DFID Pakistan; Ms. Jackie Charlton, DFID; Mr. Alistar Moir, DFID Pakistan and Ms. Nighat-un-Nisa, DFID Pakistan for their continuous support and professional technical guidance since their involvement in 2004.

Our thanks are also to Dr. James Arthur, Dr. Richard Slater, Ms. Janet Gardener and Mr. Shahid Sharif for their valuable inputs throughout the project.

We are thankful to Dr. Umar Saif (Lahore University of Management Sciences-LUMS) and his team (Mansoor Pervaiz and Tajwar Awan) for their contribution in developing the technical and user manuals of the Management Information Systems (MISs).

We are thankful to Mehreen Hosain for proof reading the document and to the SPU team members for their dedication, hard work and the many late hours spent designing, implementing and documenting the work of this project. These include: Mahmood Akhtar, Imran Yousafzai, Muhammad Shahid Alvi, Muhammad Tariq, Ajaz Durrani, Farhan Yousaf, Muntazir Mehdi, Gul Hafeez Khokhar, Mirza Muhammad Ramzan, Muhammad Sharif, Sumara Khan, Humaira Khan, Saima Sharif, Mubarak Ali, Sohail Anjum, Faisal Najeeb, Kashif Hameed, Danish Iqbal, Muhammad Zaman, Muhammad Saleem, Samiullah, Asim Rashid, Qasim Rizwan, Noor Muhammad Khan, Nuzhat Hanif, Syed Sheraz Akhtar, all the master trainers and training associates of the Institute of Learning, GIS team members, all long and short-term international and national consultants.

FOREWORD There is little doubt that in today's world technology is changing the shape of societies. The internet and globalization have eroded national boundaries enabling people to communicate across religious, ethnic and cultural divides. Here in Pakistan we are no different and are seeing many of the benefits of technological innovation. Our global competitiveness hinges on keeping up with technological change and Government must be at the forefront of making policies that enable us to harness the benefits that information and communication technologies (ICTs) have to offer. As the head of one of the largest district administrations in Pakistan, I am particularly pleased to see that we have been one of the first to embrace technology for change.

We understood the implications of not working with technology and welcomed the introduction of information and digital technology in CDGF. We have taken important steps towards e-government through developing innovative management information systems for our various departments and through the use of internet to interface with our clients and citizens. As a result of deploying egovernment, we have changed the course of our business.

We are more informed to make decisions based on the accurate information. We have brought significant improvements in the service delivery and governance through using ICTs. This case study is the twelfth in a series of case studies produced by the SDLG in Faisalabad project and describes our efforts to modernise CDGF through ICTs. We will continue investing in building knowledge economies and societies because we want to see Faisalabad emerging as a leading city in this part of the world.

I would like to take the opportunity to thank our City District Nazim for his valuable support to the reforms in our district. I would also like to congratulate my city district team members especially all the EDOs for working to achieve the successes outlined in this case study. Finally, I would like to thank our major partners in development, the Department for International Development (DFID) UK and their management consultants GHK International Ltd., for assisting Faisalabad City District through the project “Strengthening Decentralized Local Government in Faisalabad�.

Maj. (Rtd.) Azam Suleman Khan District Co-ordination Officer City District Government Faisalabad March 2008 The Clock Tower, symbol of Faisalabad

PREFACE Introducing information and communication technologies (ICTs) was a carefully planned process within the City District Government of Faisalabad. We realized very early that if we want to modernize our Local Government then a concerted effort would have to be made to understand how ICTs could help us in the process of organizational change and transformation. Until then, while many in Government possessed computers, their use had been somewhat limited. We wanted to use technology to help modernize our management processes. We were informed that improving our departmental functions and processes would require using management information systems and developing a broader strategic approach that meant embracing the concept of e-government.

Four years ago we began the process of ICT enabled change. Management information systems were developed for a number of departments that gradually have helped to transform the way we do business. We are now a more efficient and effective service provider. These computerized systems have helped us to improve many of our internal functions, critically saving millions of rupees of public funds in the process. Widespread use of the internet allows us to offer many services to clients remotely without the problems of having face to face to contact. We have improved governance.

Technology has changed the way we engage with our service users and stakeholders. Our state of the art complaints call centre is an example of how far this City District Government has progressed in four years. We are now better equipped to listen to what our customers are saying about our services and respond appropriately. We are by no means perfect and have much to do; nonetheless we have set ourselves a course from which there is no turning back now. Development of various information systems is initiation of e-government in our district.

We will continue developing new information systems and strengthening of the systems that we have developed to attain the state of e-government in future.

We remain true to our long term vision of 'pre-empting poverty; promoting prosperity' throughout this district and to that end we will continue with our commitment to change.

Dr. Tariq Sardar Additional Project Director Strengthening Decentralised Local Government in Faisalabad March 2008

Office of the District Co-ordination Officer, Faisalabad

Table of Contents

TABLE OF CONTENTS ACKNOWLEDGMENT FOREWORD PREFACE ACRONYMS EXECUTIVE SUMMARY

1

BACKGROUND

2

Key Concepts and the Context Why Faisalabad Needed Information Systems What Faisalabad Hoped to Achieve

3 4 6

THE CASE

7

THE DESIGN

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Key Information Systems of CDGF Key Processes in Developing Management Information Systems in CDGF THE IMPACTS ON GOVERNANCE E-Administration E-Services and E-Citizens FAISALABAD'S CRITICAL SUCCESS External Pressure Internal Political Desire Overall Vision and Strategy Effective Project Management Effective Change Management Effective Design Requisite Competencies Adequate Telecommunications and Appropriate Technology COST BENEFIT ANALYSIS OF ICT INNOVATIONS Cost of Development Cost Comparison with Off the Shelf Solutions LESSONS AND REFLECTIONS Match Technology with Indigenous Skills Use Local and Build Local Capacity and Expertise Social, Political, Cultural and People Dimensions of E-government Stakeholder Involvement

8 11 16 16 18 21 21 21 21 21 21 22 22 22 23 23 23 25 25 25 25 25

Table of Contents CONCLUSIONS

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BIBLIOGRAPHY

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FIGURES Figure 1: Figure 2: Figure 3: Figure 4: Figure 5: Figure 6: Figure 7: Figure 8: Figure 9:

Human Resource Management Information System Financial Management Information System Revenue Management Information System Citizen Community Boards Management Information System Road Management Information System Geographic Information System The soft approach to information systems development System Development Life Cycle (SDLC) for FMIS CDGF’s website (www.faisalabad.gov.pk)

8 9 9 10 10 11 13 14 18

Summary of IT trainings for male and female employees of CDGF

15

Examples of Technical and User Manuals Use of Information Systems for Identifying Areas of Poor Investment Impact of HRMIS on the Critical Path of Access to Staff Strength in the Education Department

28 30

TABLE Table 1: ANNEX Annex 1: Annex 2: Annex 3:

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Acronyms

ACRONYMS AEO CCB CDGF DCO DDO DDO DEO DFID DO EDO FMIS GIS HRM HRMIS ICT IT LGO MDG MIS NGO NRSP Rs. SDLC SDLGF SPU UAF

Assistant Education Officer Citizen Community Board City District Government Faisalabad District Coordination Officer Deputy District Officer Drawing and Disbursing Officer District Education Officer Department For International Development District Officer Executive District Officer Financial Management Information System Geographic Information System Human Resource Management Human Resource Management Information System Information and Communicating Technologies Information Technology Local Government Ordinance Millennium Development Goals Management Information System Non-Government Organization National Rural Support Programme Rupees Systems Development Life Cycle Strengthening Decentralised Local Government in Faisalabad Strategic Policy Unit University of Agriculture Faisalabad

Executive Summary

EXECUTIVE SUMMARY In the 21st century, Local Governments and public sector organizations are faced with the challenges of globalisation. As drivers of social, economic and political development, Governments have a considerable responsibility for providing key services to citizens and managing society in general. To fulfil their mandate, a stark reality is that the Local Governments need to change all over the world and in particular in the developing countries like Pakistan. City District Government Faisalabad (CDGF) embraced the need to change with the aid of Information and Communication Technologies (ICTs) based information systems. In complex Local Governments like in Faisalabad, achieving integration is critical to meet the objectives of effective service provision.

CDGF realised that ICTs can make a significant contribution to effective and efficient service provision by saving time and improving work practices through improving organisational functions and processes along with the achievement of good governance in the district as part of its broader reforms programme. By realising these benefits, CDGF embarked on egovernment programme, based on the development of a number of management information systems for its various departments and the internet.

This case study outlines how Faisalabad's e-government programme, has helped alter the dynamics of governance in the District and charts out how the programme was developed, the conceptual basis for its inception, its key processes, what was the impact and whether there are lessons for other Local Governments which can be drawn from the experience. In particular, it considers how other districts or public sector organisations might wish to proceed before investing in ICTs and automation for effective service provision. This study illustrates that how Faisalabad has started the process of e-government by developing information systems and why Faisalabad's interventions succeeded when so many others may have failed.

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Background

BACKGROUND The Strategic Policy Unit (SPU) was set up by the Faisalabad District Government in 2002, as a policy think-tank. Its key aim was to act as a conduit in the district from which all reform programmes could be initiated. In 2004, the United Kingdom's Department for International Development (DFID) agreed to provide technical assistance to the District using the SPU as the platform from which change would be driven.

The SPU over a four year period has acted as a key resource fostering social capital within the City District Government and often being the focal point for local and international technical assistance and programme development. With a cohort of key technical resources and change management agenda, it plays a key role in facilitating public sector reforms and is replicable. It has been instrumental in assisting Faisalabad become a modern administration.

The view is now commonplace that old patterns of industrial society are receding within much of the world and being replaced by a new form of organisation associated with rapid technological change. The industrial age is being replaced by an 'information age' in which 'knowledge workers' and 'information labour' are emerging. Information and Communication Technologies (ICTs) are at the centre of this paradigm shift, diluting dysfunctional bureaucratic forms of organisation and bringing a new flexibility to decision making. The world has entered the era of the 'information society'. Government is at the centre of this transformation.

Information and Government are inextricably linked and in today's Pakistan ICTs offer the tiers of Government the opportunity to make improvements in their services and responsiveness to citizens. The use of IT and ICTs in the public sector is referred to as egovernment. The term e-government is broad and refers to more than just the use of web and internet based applications in Government. It encompasses all use of digital information technology, though primarily computers and networks in the public sector.

In Faisalabad, Pakistan, the City District Government harnessed the potential of ICTs and embarked on a programme of e-government, radically altering the way it functions.

Management Information Systems (MISs) are locally designed, maintained and managed and are helping to transform relationships inside and outside Government.

Through developing a range of MISs and other measures related to interfacing with citizens in innovative ways, the City District Government of Faisalabad (CDGF) has taken the first important step towards e-government. The City District Government recognized the need to develop information systems that handled data and delivered information to support decisions and transactions. Finance, human resource management, community development, roads and revenue were identified as the important strategic areas in need of management information systems, and the integration of these stand alone systems through a Geographic Information System (GIS) was also deemed necessary.

These systems help to bridge poor coordination and cooperation within departments as well as empower those at the lower end of the hierarchical chain, and bring about greater levels of transparency and accountability. They have brought about significant efficiency and economy gains for the City District Government enabling it to align its resources to key development priorities more effectively.

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Background

Key Concepts and the Context E-Government Systems There are numerous definitions of e-government. In its simplest form, e-government is defined as the “use of IT by public sector organisations” (Heeks, 2006). E-government is therefore not just about the internet; it also encompasses office automation and internal management information systems as well as client facing web sites. This definition fits the work carried out by the CDGF during its reforms programme.

A more comprehensive definition of e-government views it as comprising three key stages (Heeks 2001):

Automation: replacing human executed processes with computers e.g. computerizing personnel information or payroll; Informatisation: supporting human executed information processes e.g. decision support tools such as financial management systems; Transformation: creating new ICT executed information processes or supporting new human executed processes e.g. creating new methods of service delivery or increasing democratic participation through electronic voting.

Faisalabad exhibits aspects of first two elements; automation and transformation highlighting how it has managed to begin saving the costs associated with carrying out functions such as finance and is moving towards third stage i.e. transformation. As a result of its work in deploying e-government systems, Faisalabad is better connected, saves more money and time in delivering services, and is more conscientious of its external environment and stakeholders.

Using this criterion and definition, Faisalabad is now automated and informatised. In years to come, it will be in a position to offer more transformative online services.

Management Information Systems (MISs) The foundation of the change brought about by Faisalabad was the development of sound information systems to enable management decisions. There is no universally accepted definition of an MIS. However the primary purpose of an MIS is to inform people. One of the problems with trying to characterize an MIS is that two distinct views exist of what an MIS is supposed to do. A typical definition of MIS is given below: “The combination of human and computer based resources that results in the collection, storage, retrieval, communication and use of data for the purpose of efficient management of operations and for business planning” This is the 'production oriented' view i.e. it concentrates upon the means of producing the information. However the view taken by the Faisalabad Government in the course of the last four years is 'management oriented'. Whereby, the means of production is secondary to ensuring that the correct problems are addressed and the right information is available to the managers and support staff that want it.

This change in emphasis from information 'systems' to information 'management' requires a different, more subtle, definition of a MIS. It further requires a focus on the interaction of

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Background systems specialists with department managers and officers as a feature of successful MIS development. The definition which is of most use here and of relevance to the Faisalabad context is: “A system to convert data from internal and external sources into information and communicate that information, in an important form, to managers at all levels in all functions to enable them to make timely and effective decisions for planning, directing and controlling the activities for which they are responsible�

E-Government Systems as Information Systems This leads us to ask the question what does IT do then for public sector organisations like Faisalabad? It handles data to produce information. The next step to understand is that egovernment systems are information systems. At their heart lie data and information. These are handled by digital and sometimes non-digital information technologies. But this does not make a 'system', a system is a collection of elements that works and has a purpose. To understand e-government as an information system, we must add in some notion of activity and purpose. This is achieved when we bring in people into the equation.

For e-government to be seen as a working information system it must be seen as much more than just the technical elements of IT. Instead, it must be seen to consist of technology plus information plus people who give the system purpose and meaning, plus work processes that are undertaken. These dimensions shaped the information systems developed by the City District Government in Faisalabad.

Why Faisalabad Needed Information Systems

Orientation session on e-government for the students of University of Agriculture Faisalabad

There are organisational reasons why Faisalabad was failing to deliver effective services before the onset of its 4 year reforms programme. In 2004, with the aid of technical assistance from the UK Government's Department for International Development (DFID), the City District Government conducted an internal review and assessment of its management systems and processes. It highlighted a number of areas that needed to be addressed urgently where information and communication technologies (ICTs) could be used to bring about significant improvements in the way the City District Government did business.

It was noted that in almost all departments, information was lacking, and if available, it was scattered and was not regularly updated. Critical decisions were thus being made on the basis of little or inaccurate information. Even when data was digitized, it remained in disparate formats lacking a consolidated view to plan and analyze the resource utilization of the CDGF. The challenge was to bring Faisalabad into the 21st century with the aid of technology based management systems. Some specific issues that were identified are highlighted here: Scale of City District Government Faisalabad is both large and complex where vertical and horizontal differentiation undermines organisational cohesiveness. Achieving 'integration' was going to be critical to its desire to meet its wider objectives of effective service provision. This would require improving access to information and a changing culture where information was openly shared for mutual benefit. The deployment of management information systems would facilitate the breakdown of boundaries. 'Joined up' Government could be achieved as a result of MIS.

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Background Automating Human Executed Processes The use of computers in Faisalabad had been limited. Though departments possessed computers these were simply used as word processors to prepare memos or departmental budgets in simple excel formats. Their potential strategic use had not been realized and there was much intransigence among lower tier officers to accept the organisational benefits of computerized systems. Traditional ways of performing routine tasks and functions were preferred. Management information systems would offer the opportunity to modernize to deliver more outputs with a minimum of effort. Quicker and cheaper governance would be achieved.

Poor Financial Management Processes Several important functions linked to financial management were performed badly in the absence of an automated system. Financial information lacked accuracy, was not reliable, was not shared with key personnel and there was no accountability of how public funds were being spent in key social services. Records of expenditure often failed to match budget allocations, consequently affecting the way money was released to departments from finance managers. The overall impact of poor financial management was that in 2004 the City District Government had a deficit in excess of millions of rupees. A management information system dedicated to predicting and managing the districts public finances would bring better transparency and accountability.

Poor Human Resource Management Systems All personnel records for 32,000 employees were kept manually and dispersed. No system existed that enabled senior managers in the City District Government to keep track of its vast employees, identify those that were to retire, or indeed carry out any performance related evaluations. All data pertaining to City District Government employees was processed manually. This was time consuming, expensive, with staff requirements frequently misinterpreted and prone to human error. An automated human resource management system would enable the department to provide better services and information, particularly for strategic decision-making.

Poor Connections between Government and Civil Society There was limited provision for communicating with civil society, citizens and society at large.

The City District Government had inadequate mechanisms for liaising with its customers, consumers and service beneficiaries. Little or no information was provided to the outside world on successes or failures in service provision. Direct one to one contact at the front office level or service delivery level was the only way service provider and service user connected.

Often the relationship was strained with service users dissatisfied with the quality of services.

Areas of potential cooperation between Government and civil society tend to be limited in the absence of adequate communication tool.

Poor Connection between Government and Citizens / Businesses Similarly, information asymmetry characterized the relationship between the City District Government and its wider citizenry. A lack of customer orientation, communication and service connectedness contribute to undermining governance in the district. The City District Government was not very good at providing information to citizens to enable better decisions

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Background or scrutiny. Similarly public input into Government decisions was limited to the district assembly where local councillors represented public interests. Virtually no services were provided online except details outlining the CDGF’s organisational structure.

What Faisalabad Hoped to Achieve It was clear that the development of different MISs could help to save time and improve work practices within CDGF's departments. In terms of public sector organisations such as Faisalabad, there were many positive elements which could be achieved through the development of information systems. These can be summarized as follows:

The speed of service delivery: Much more data can be processed and retrieved faster. Waiting time for clients is reduced and time taken to handle information is also reduced. Overall, less time taken handling 'normal' transactions allows more time to deal with specific 'abnormal' activities; Increased access to service agencies: Internet access and information kiosks, etc. make it possible to broaden the availability of information to the public. People who want particular information can visit the agency web site when they require it; Remote control and transactions: Network technology not only increases participation but it also opens up the possibility of electronic payments which may be significantly more efficient than the existing system; Increased transparency of clients: The coupling and management of databases provides more information on clients, etc. enabling better targeting and services; Linkages across organisations: Network technology allows for the blurring of organisational boundaries and information sharing. This significantly lessens duplication and improves services in terms of seeing clients as a 'whole person'; Increased awareness of interdependence: Reducing the separatist attitudes of departments and agencies and increasing awareness of interdependency of Government agencies.

Critically, MIS can be effective and efficient but also appear to be hostile to users.

Organisations, in particular traditional Local Governments like Faisalabad, are complex, and information systems encroach on most areas. They therefore need to be sensitive to the needs of users and service managers. This lack of sensitivity has led to many problems in implementing MIS. The CDGF was acutely aware of the potential barriers to the introduction of new systems and ways of doing business, including:

Lack of management involvement with the design of the MIS, sometimes translates into hostility and blocking off staff development and information; Narrow or inappropriate focus of the computer system, can result from solutions being driven technically rather than managerially; Over-concentration on low level data processing, can result from ignoring higher level applications; Lack of managerial knowledge regarding computers impedes the process; Poor appreciation of management by MIS professionals; and Lack of top management support.

With these potential challenges in mind, Faisalabad embarked on the task of transforming its management information systems.

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The Case

THE CASE During the initial phase of the reforms programme within CDGF, a detailed situation analysis of systems and processes of the departments was conducted to develop a strategic framework with clearly articulated objectives for these departments. It was noted that in various departments, information was lacking, and if was available, it was scattered and was not regularly updated. The decisions were made in an un-informed manner in the absence of accurate information. The CDGF concluded that development of different MISs could help to save time and improve work practices within its departments. Moreover, information systems is a key aspect and one of the dimensions of good governance and is mentioned in CDGF's corporate plan.

As a result, development and use of MISs has been a key tool in improving departmental systems and processes through the reforms programme in CDGF. Information systems have been developed for various departments like Finance, HR, Community development, Revenue and Municipal Services etc. An integrated Geographic Information System (GIS) has also been developed which is the subject of another separate case study. The development of every MIS has its own use, organisational process, history and development cycle. This in itself is a great learning experience for CDGF i.e. moving from hard core data files to desktop MIS application and ultimately moving towards web-based solutions. The development history of MISs will have lessons for future users, amenders and replicators.

This case study illustrates the key steps taken to actually design MISs (starting from inception), key processes in implementing and their impacts on the service delivery mechanisms and governance in CDGF.

Traditional Manual System

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The Design

THE DESIGN Key Information Systems of CDGF A number of information systems were developed for various departments of CDGF, keeping in view their differing needs and requirements and are described in this section. Some were developed during the early stages of the reforms programme, while others were introduced at a later point.

Before making any posting / transfer case, we can log into the HRMIS and see whether this person has spent three years, the allocated posting time, in that position. It was not easy to determine this from paper records previously.

Clerk in the office of District Officer male elementary education

Human Resource Management Information System (HRMIS) An HRMIS has been developed for the district's HR department (Figure 1), which has one of the largest workforces amongst districts with more than 32,000 employees. The HRMIS was considered critical, as basic data and information about the most important capital of CDGF, human capital, was almost non-existent. The HR department could not properly assess staff gaps, filled and vacant positions, the number of staff in offices and sub-offices, information about leave and retirement of the staff.

Figure 1:

Human Resource Management Information System

The HRMIS has automated the key tasks of the HR department. The district departments are now in a better position to plan their human resources and can make decisions based on updated employee and establishment details. The required information can now be generated very easily which used to take several weeks.

Financial Management Information System (FMIS) Given the large size of the CDGF including schools, roads, health centres, buildings, hospitals etc., it was natural that data about financial spending, fiscal requirements and planning was scattered in numerous paper-based files.

There were delays in the budget preparation process, reconciliation of accounts and release of funds. Access to data was limited, funds were routinely underutilized, and projections for future allocation of funds were often not aligned with requirements on the ground. Therefore, an automated system was needed to consolidate the financial data of the CDFG and enhance financial responsibility, fiscal transparency and flexibility, allocative efficiency and expenditure management.

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The Design The FMIS was developed to help overcome these problems and it supports many of the key functions and processes of the Finance and Planning (F&P) department (Figure 2). It is helpful in analysing the financial position of the district and plays an important role in targeting pro-poor investments in the district.

Figure 2:

Financial Management Information System We do not need to come all the way to Faisalabad city now for preparing budgets.

The CDGF has made our life easy by developing an information system that helps us in preparing budgets while we stay in our own town. The system has allowed us to complete the budget in one week, a process that previously took one month to do.

A clerk from Tandlianwala, a far off town of the District

Revenue MIS The City District Government was facing innumerable problems in keeping a record of local receipts being collected from different local revenue sources. Previously there was no record available of the total potential of revenue and about actual collection, leading to unrealistic budgeting. The Revenue MIS is helping the department in keeping track of receipts against their set targets, identifying leakages, and preparing realistic budgets based on actual revenue potential (Figure 3).

Figure 3:

Revenue Management Information System We did not know how many Hoarding Boards and Shop Boards we had in the city.

Similarly, we did not know how many commercial properties there are in the city. These are our major sources of revenue and the Revenue MIS now provides us with information of all the assets that we have.

EDO Municipal Services

Citizen Community Boards Management Information System (CCBMIS) CCBs are an institutional mechanism introduced by the devolution programme, and form a new area of work for the Government. These are voluntary organisation which are formed by 25 people resident of a Union Council (smallest unit in Pakistan) to carry out development

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The Design work in the Union Council. All CCBs are registered with the Community Development department and are required to have unique names within the District. Moreover, a community board may only have members who are not members of any other CCB. While simple, abiding by these requirements without a digitized central management information system, the process was time-consuming and difficult for the department.

We were facing difficulties in the CCBs registration process. As per the CCB Rules, we cannot duplicate the name of a CCB. It was very difficult for us to trace the duplicated names from hard copy files. Dual membership of the same persons in different CCBs was another major issue for us. The CCBMIS has made our life easy; we no longer need to look into a large number of files for registration of CCBs

Prior to the CCBMIS (Figure 4), the records for over 1600 CCBs in the district were maintained in paper-based files. Therefore, when an applicant submitted an application, typically the only procedure that was followed was to check for the uniqueness of the newly proposed name. Cross-checking members of the board against previously registered CCBs, was often not possible due to the tedium of the task. The CCBMIS maintains the records and details of all CCBs and their developmental projects.

Figure 4:

Citizen Community Boards Management Information System

A clerk from the community development department

Road Management Information System Roads are an important asset of the City District Government. However, the district had major problems in identifying which road network needed maintenance and which has had major repairs more than one time. Being unable to prioritise the maintenance needs of the roads, this important asset was being wasted. The Road MIS (Figure 5) has helped the City District Government in identifying roads and in prioritising their development needs.

Figure 5:

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Road Management Information System

The Design Geographic Information System (GIS) After the successful development of other stand alone information systems, the CDGF also embarked on developing a Geographic Information System (GIS) (Figure 6). It was realised by the District Government that the unavailability of physical mapping of infrastructure and services was resulting in inappropriate projects. The GIS was introduced to improve the targeting of poor areas and enhance the planning process for future investments.

Figure 6:

Geographic Information System

Importantly, all existing information systems have been linked with the GIS. Through one time clicking, information about various services can be retrieved. For example, in a village complete information about a school e.g. physical condition of the school, staff of the school and financial allocations to the school can be retrieved, which has enabled a more integrated planning process across the district.

GIS is the subject of another separate case study.

Key Processes in Developing Management Information Systems in CDGF While a number of information systems have been developed, the development of the Financial Management Information System (FMIS) and Human Resource Management Information System (HRMIS) are illustrative of the approach used by the CDGF and these processes are described in some detail in this section.

Institutional Leadership It was decided from the outset that the Information Technology Department would lead the systems development work in the City District Government. Technical and analytical support was provided by the project team of Strengthening Decentralised Local Government in Faisalabad (SDLGF) project, but responsibility for leading the day to day project management lay with the Executive District Officer (EDO) of the relevant department, with the IT department overlooking the process.

Meeting of the EDOs with IT department on developing MISs

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The Design The advantage of keeping the IT department in loop was threefold; to ensure that the project was owned by the IT department, even though it lacked key staff; secondly, it sent out an important message across the organisation that despite a lack of capacity, the department was still responsible for key IT functions and was ready for business and thirdly all IT related issues needed to be routed through the IT department rather than being handled independently. This was an opportunity to give the department a more meaningful role and profile within the CDGF as envisaged within the local government ordinance.

Use Local, Low Cost Indigenous Resources and Technology The City District Government resisted the temptation to use commercial off the shelf sophisticated systems. The IT department and other senior departmental managers opted to use the Microsoft Windows platform. For the Financial Management Information System (FMIS) initially VB6 was used before graduating to ASP.net for two reasons: Â&#x; Â&#x;

ASP.net afforded rapid prototyping, with a good development framework such as the Microsoft Visual Studios; The initial VB 6 version was designed solely as a desktop application, without support for remote access. ASP.net affords remote network access, enabling a model where a single installation of a system can serve several sites.

For storage purposes all the systems use Microsoft SQL Server 2000 database. The existing choice of development tools was dictated by the skill set of available programmers but more importantly the concerns of sustainable use and extension of the developed software. The team responsible for developing and implementing various information systems was hired locally in Faisalabad.

Alternative open system and commercial off the shelf solutions could have been adopted to develop these systems. However they presented considerable cost and technological challenges for the CDGF. Oracle and SAP were both sophisticated, but there was consensus amongst city managers that it would be extremely difficult to find expertise in these systems locally in Faisalabad and after the development, the running and maintenance cost of these systems would have been very difficult for the Government to bear.

Consult and Build Capacity along the Way

Discussion on development of HRMIS with partner organisations

The CDGF team led by the IT department held several key consultation meetings and discussions with stakeholder departments on their user and system problems and requirements. Counterparts from relevant departments were identified and assigned to develop information systems. The approach's key strategy was to have departments as part of the process at all stages and ensuring that skills were being transferred. Though timeconsuming, it enabled managers and officials to see the time taken to develop such systems.

Departments discussed and identified their own problems and discussed how they could be overcome with the IT department. This resulted in a far more robust systems development process than might have been the case had commercial off the shelf systems been used. The key strategy was to involve Government at all stages and incorporate the input of users into design.

Adopt Soft Systems Approaches Faisalabad adopted a 'soft systems' approach to develop its management information systems. This differs from hard methods, in that they document the bounded areas of data

12

The Design flow or systems. The former looks at soft methodologies in which the boundaries of systems may move as stakeholders in the system are identified and intangible elements are sketched out. The City District Government realized that an approach which detailed how data flowed would be insufficient and there was a need to understand the social, political and cultural context within which data flowed across boundaries.

The CDGF team sat down with departmental staff initially and mapped some of the soft intangible issues, deriving purposeful systems which were then expressed as a conceptual model before any discussions took place about technology. This process is outlined in Figure 7.

Figure 7:

Training of District Government officials on basic IT skills

The soft approach to information systems development

1. Information, problem or opportunity identified by brainstorming between the CDGF team and relevant government departmental staff

New situation, new problem/opportunity

8. Act to implement new change

7. Meet all stakeholders and discuss options 2. Problem perceived and discussed with EDOs, DOs and DDOs

3. Explore Tasks and issues

6. Deciding in terms of systems options

Comparing the picture

5. Construct a conceptual model and activity task

Systems Thinking

Define client, actors, owner, constraints and transformation

4. Produce a statement of transformation and change management plan

Source: Adapted from Avison and Wood- Harper (1990)

The Systems Development Life Cycle (SDLC) Approach The CDGF team, relevant EDOs, departmental staff and IT department then moved onto analyzing and designing their respective systems and requirements. Here the systems development life cycle (SDLC) was used as a key methodology with inputs from department managers and users. This approach presented a number of advantages for the IT and client departments. Early applications and systems were driven by technical rather than organisational criteria. This system, though dated, attempts to introduce better information systems in an integrated environment. The City District Government adopted it because it enabled its managers and officers, with limited capacity and experience to see the benefits of viewing information systems within a human and organisational context. All of Faisalabad's information systems were subsequently developed using its six main stages (Figure 8); finance is used for illustration purpose. The same SDLC approach was used for HR as well as for other information systems.

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The Design Figure 8:

Systems Development Life Cycle (SDLC) for FMIS

1. Situation Analysis and feasibility assessment

Gap analysis of F&P

F&P user requirements 2. Systems Investigation

Current finance processes 3. Systems Analysis

Brainstorming session on CCBMIS 4. Systems Design

Finance processes re-engineered System specifications made Interface and back office support provided Training plans prepared

Conduct on job training 5. Implementation

6. Review and maintain

Evaluate performance

Situation Analysis and Feasibility A detailed assessment of existing financial and human resource systems was jointly undertaken with IT department and the concerned department. Detailed process mapping was undertaken for key transactions, work and task flows. A detailed picture was built of the way in which data was generated, stored, managed and converted into information for key stakeholders. For example, the budgeting process was mapped completely from the point at which the budget call letter is issued to when costs and expenditure are recorded within departments, and who were the key internal and external actors in the process. It was critical to understand finance and HR processes within the Government before proceeding with their re-engineering.

Systems Investigation and Analysis Here the CDGF identified the resources, capacity and direction that individual projects would take to implement the systems. The teams familiarized themselves with the boundaries that existed in financial and HR information flows and the kind of data that needed to be processed. Analysis was carried out that would link the information systems with the aims and structures of the organisations. In the case of finance, how the Finance and Planning department would link with the non-devolved District Accounts Office and its personnel? In the case of HR, how each department would make the records of personnel available to the District Officers HRM and Finance and Planning. User views and requirements would need to be incorporated into the analysis so that system reports reflected the information they needed and would be practically useful.

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The Design Systems Design, Implementation and Evaluation On the basis of the analysis, new tasks and workflows for each of the departmental systems were designed. For example, Finance and Planning department was keen to streamline its financial releases process. This used to be a cumbersome process which involved too many decision makers / layers and led to impeding service efficiency. It was calculated that it would take eight stages to undertake the task. Options were discussed with the Finance & Planning and other departments, and it was agreed to re-engineer the process down to six key steps.

Similarly in HRM, almost 500 personnel would be involved in making data available to corporate management. An automated system was needed that would provide access to accurate and timely personnel information to corporate management. FMIS and HRMIS were developed and are constantly reviewed and strengthened to meet Faisalabad's needs.

Computerization of records

Maintaining the Information Systems Once developed the information systems were not handled in isolation by the systems development team. They were handed over to the departments through an incremental process and the capacity of departmental staff was built throughout the process. The IT department through its Computer Training Centre has been imparting trainings to male and female employees of CDGF on basic computer skills, e-mail and Internet. Trainings on information systems for the staff including EDOs, District Officers (DOs), Deputy DOs, Drawing and Disbursing Officers (DDOs) and clerks of the relevant departments have also been conducted. Table 1 presents the summary of trainings for employees of CDGF: Table 1: Sr.

Summary of IT trainings for male and female employees of CDGF Participant Details

Training Title

No.

Male

Female

Total

1

Basic Computing Course

483

109

592

2

HRMIS Application Training

110

57

167

3

FMIS Application Training

70

30

100

4

CCBMIS Application Training

3

1

4

All management information systems are currently fully institutionalised and are being used and updated by the departments. The GIS is the sole exception, and is being maintained as a separate unit, with a view to integrating all the departments. Video and technical documentation and user manuals for all MISs have been prepared to aid users, amenders and replicators in future. Annex 1 describe examples of technical and user manual.

Brainstorming session on IT needs of the district departments

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The Impacts on Governance

THE IMPACTS ON GOVERNANCE A finance clerk said that while the FMIS had made life easier beyond what they had imagined, there were concerns that now senior management would be less dependent on clerical staff for information. There was a power shift.

Academics and practitioners argue that ICTs can make governance more effective and efficient, while bringing other benefits. Some take the argument further and suggest that egovernment has the potential to benefit the poor too. Similarly some not only view egovernment as changing relationships in governance but helping traditional bureaucracies make the gradual transition to modern administrations. Faisalabad is a case in point. The use of e-government systems such as those deployed by Faisalabad (MIS, internet and intranet) can be divided into three main domains against which it is possible to measure progress in governance. These are e-administration, e-services and e-citizens.

E-Administration This refers to use of technologies to improve internal organisational functions and processes.

Typically these will be Government to Government services (G2G) and reflects Faisalabad's commitment to two of its core dimensions of good governance namely organisational improvement and information systems. In this case, Faisalabad used information systems to achieve substantial gains organizationally with wide ranging benefits. Investments in management information systems have led to a reduction in the costs associated with carrying out a number of functional tasks and internal services. Secondly the management of key processes of the City District Government such as budgeting, reconciliation and work force planning has become easier for officers. Thirdly, the automated systems have helped departments become better connected, improving their coordination and communications which in the past were disjointed. So how do we do this?

There have been significant achievements, with demonstrated impact on efficiency and effectiveness: the budget cycle has been reduced from 9000 man-days to 3000 man days and from 45 days to 9 days; the HRMIS has saved almost 1500 man hours and can generate relevant management information in minutes; the Revenue MIS has reduced the processing time for bills from 6 man days to 2 man days; and the CCBMIS has reduced the registration time for CCBs from four to six weeks to one week.

Budget Cell

Importantly, all MISs are now linked through the GIS, allowing spatial representation and a tool for evidence-based planning. Annex 2 provides an example of usage of information systems and depicts how information is being mapped and used to target areas of need, enabling a more poverty-focused approach.

Saving Costs, Improving Productivity, Achieving Value for Money

FMIS has revolutionized the City District Government’s financial systems, made our jobs easier and saved a lot of time.

Comments from one senior Finance officer

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Internal service costs were significantly reduced by replacing functions that were carried out manually with computers and automated information systems. Two examples highlight the transformation from manual to simple e-administrative processes. They demonstrate the potential and power of information systems and technology in making Government efficient and economical.

Firstly, the City District Government's Finance department computerized data on the amount of financial releases made to individual departments. This was part of the overall process of strengthening the way in which accounts were reconciled. In the pre-MIS era, finance officers in departments such as Education and Health did not have access to information about when

The Impacts on Governance their funds would be released and how much (i.e. the expenditure booked at District Accounts Officer (DAO) against his/her DDO code). This information could only be accessed by visiting the department in the city. This was costly in terms of money and time, taking officers away from their field based jobs for the best of a day at a time. The FMIS contained information on scheduled and actual monies to be released to departments. Resource centres were set up in remote Government facilities with access to the internet, allowing finance officers access to financial information including fund releases and expenditures. Visits to head offices were not required anymore thus enhancing output productivity.

Secondly, in the Community Development department, an information system for local Citizen Community Boards helped speed up service time and save stationary costs. In Faisalabad over 1600 CCBs were registered and their details contained in paper files. At times when information was needed by another department, preparing a technical approval or project site visit, it could take officers hours and in some instances days to respond. In addition, it was commonplace for files to be misplaced or lost altogether. The City District Government helped the department set up a simple information system where the details of all the district's local CCBs were stored and accessible. The Community Development department was now able to respond to queries from other departments quickly, with minimum effort and cost. This led to greater departmental productivity.

Department using CCBMIS

Effective Process Management Automated systems offer opportunities for the better planning of resources, by avoiding duplication and using better quality information. Faisalabad's Human Resource Management Information System is example of how manual planning processes can be streamlined to bring efficiency and productivity. The computerization of personnel records for over 32,000 employees marks a watershed for Faisalabad. The data is centralized in a unitary repository, which eases its management. Significant time costs are reduced when generating establishment, retirement and seniority reports for district and provincial departments.

HR information is updated through three resource centres located within the Health, Education and Municipal Services departments. Departmental staff have been given responsibility to update information on postings, transfers, retirements and new hires.

Updates are undertaken monthly and the City District Government plans to make it daily a process once other processes are streamlined. The system contains up to date and accurate information which is available to the HR department, DCO and Provincial Government at anytime. Personnel information is accessible to all EDOs, DOs, Deputy DOs and twenty AEOs through the Government's web site www.faisalabad.gov.pk and is password protected. Annex 3 provides critical path of access to staff strength in the Education Department, before and after the development of HRMIS. Creating Empowerment The creation of these information systems has had profound power implications for a hierarchical City District Government. In particular, information that was only previously accessible to senior managers is now available to decision makers further down the hierarchy. HRMIS is accessible through the web to EDOs, District Officers (DOs), Deputy District Officers (DDOs) and even Assistant Executive Officers (AEOs). FMIS access has been provided to Drawing and Disbursing Officers (DDOs) in the field.

The HRMIS is generating information by a single mouse click, information that used to take us several days to collate previously DO HRM

One Drawing and Disbursing Officer felt that the training programme conducted by the City District Government on aspects of the new accounting model had enhanced their professional capabilities by years.

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The Impacts on Governance

By having online access to facts and figures published by the Finance department meant that everyone was in the know about how much money was being released and being spent by departments. This transparency would help improve expenditure and services. Officers felt more empowered and responsible.

Views of front line officers

Access to personnel information at key points within the City District Government has not only helped speed up key processes but empowered employees. By giving access to important information the City District Government has transferred power and authority for an important process from one locus to another. In the case of HR this is to lower and, more localized levels of the administration and is an example of decentralization in practice. Similarly DDOs in departments now can access financial information through the FMIS, allowing them to monitor when releases ought to be made to them by the Finance department and circumventing an already cumbersome process. Subsequently new information flows have been created.

E-Services and E-Citizens These areas deal with relationships between Government to citizens and Government to business interactions. E-services allow citizens to access information electronically, and to submit information online. E-citizenship is about two way communication, influencing public policy and practice. The internet has changed the face of communication and it presents a number of ways in which links with consumers can be strengthened.

Talking to Citizens Faisalabad wanted to provide its customers and stakeholders with details of its public sector activities. In line with its corporate vision, it wanted to improve accountability and bring about greater transparency in the way it did business. It decided to begin talking to its citizens more openly by providing new information flows on which accountability depends. The rationale was to increase pressure on staff to perform well and improve public understanding of government. This was done in two ways.

The official website www.faisalabad.gov.pk made information available about the City District Government, its key departments, contacts and reforms in both English and Urdu (Figure 9).

Financial information, birth and death certificates, changes in policy and links to other partners are all available online. This is particularly representative of the government's aim to become more citizen focused and publishing i.e. delivering data to citizens is a move in the right direction to improve governance.

Figure 9:

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CDGF’s website (www.faisalabad.gov.pk)

The Impacts on Governance Box 1: Thoughts from external users The chairman of a CCB was impressed with the speed with which the Community Development department was able to deal with enquires.

An officer from a local NGO said that by having key information had improved coordination with the department. In the past they would rarely trouble the department for information and now they use their database regularly for support.

Another NGO representative said that the department should build on this and begin offering more services online, this would save more time, money and improve quality.

Listening to Citizens It was cognizant of the need to increase the input of citizens into the way it designed policies, implemented programmes and delivered services. Better participation would provide improved information flows from citizens to the City District Government. The rationale is to make public decisions more responsive to citizen's views and needs. In June 2007, the City District Government established its first automated complaints call centres.

The centre registers public complaints about services and was part of the City District Government's commitment to listen to what the public had to say about its services and improve service provision. It provides a focal point for collating public views on services.

Departments are pressurized to respond in a timely fashion and make improvements accordingly. It is a cheap and effective way for the public to try and influence service provision and public policy more broadly.

Improving Public Services The internet provided an opportunity for the City District Government to deliver services in a different and unique manner. Quality services could be delivered conveniently, quickly and

CDGF’s Call Centre

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The Impacts on Governance Box 2: Reactions from community development department The EDO for community development said that as a result of the management information system for CCBs and local NGOs, his officers and department was now better placed to provide quicker and more reliable information to everyone.

District Officers in the department lauded the system saying that now there made little sense in retaining paper files and that every bit of information should be stored and managed in computers. When asked why, they all agreed that it made access and retrieval easy. They also felt it was more difficult to lose a computer than a file containing important contacts or information.

cheaply at limited cost to the customer. This uses the potential of ICTs to deliver informational public services digitally. For example, NGO and Citizen Community Board registration forms are available online for members of the public and organisations to access. This releases citizen time and money that would otherwise be captured by inefficient service delivery. It also undermines corrupt practices taking away the need for direct service provider and user contact where the potential for rent seeking is raised.

Other information includes social, economic and political profiles of union councils for the district which can be easily downloaded by local councillors, interested organisations and communities. These enable local planners and decision-makers to use this information to budget and plan local projects more effectively than ever before. Again this can be done without the need to make many visits to departments requesting information that may or may not be held by local officials. Critically, it breaks down barriers between Government and external stakeholders but allows the diffusion of information flows from Government to citizens and other stakeholders.

The FMIS is helping us in allocating financial resources more efficiently and effectively, and in accordance with the needs of our citizens DO Planning

Use of information systems by DO Planning for allocating financial resources

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Faisalabad's Critical Success

FAISALABAD'S CRITICAL SUCCESS In Faisalabad a set of enablers and drivers led to the success of its information systems and e-government programme. The process is by no means complete and there is much that remains to be done by the City District Government before it can say its programme has completely changed the dynamics of governance. However, more often than not egovernment programmes fail. In Faisalabad this is not the case. Several factors have contributed to the success:

External Pressure Faisalabad's programme was given impetus through the technical assistance and support received from the UK Government's Department for International Development (DFID). The team worked closely with CDGF to provide the intellectual drive and capital that led to the information systems design and programme implementation.

Internal Political Desire City District Government officials were key drivers for reforms and the achievement of their corporate policy, vision and mission goals. E-government and in particular information systems were central in the view of many in Government to changing the way business was done. The DCO, EDO Finance and Planning and the IT department provided an important lobby and advocacy with the City District Nazim and District Council for ICT led systemic reforms.

Overall Vision and Strategy An overall corporate plan, vision and mission and dimensions and principles of good governance and e-government set the organizational agenda. These frameworks gave a clear idea of 'where the government was going' and integration with broader reforms, seeing ICTs as a means and not an end. All e-government related work was placed within a larger change framework and part of the vision of helping Faisalabad become a modern, efficient and citizen focused institution.

Effective Project Management Clear responsibilities, good planning, realistic expectations, good resource management and relationships with partners underpinned the programme and its implementation. The City District Nazim and its DCO took responsibility for setting overall direction, in conjunction with CDGF team. Overall team leadership responsibility was given to the EDO Information Technology and key personnel were allocated to the programme from other departments.

Though initial teething problems existed, eventually the City District Government was convinced of the potential of ICT enabled reforms. Extensive consultations were held with departments when designing their information systems and an SDLC approach was adopted which crystallized for Government the roadmap for e-government systems development.

Effective Change Management

Opening ceremony of CDGF’s Computer Training Centre

ICT led systemic reform was part of a broader change management focus by the City District Government. The City District Government identified a set of important 'champions' that would lead the work. Incentives were used to create ownership and commitment for the

21

Faisalabad's Critical Success programme. Extensive stakeholder involvement was a key character of the programme and its management. At all times the team emphasized the need to include people, systems and culture as part of technology based solutions.

Effective Design

Monthly meeting of district’s administration

An incremental approach was adopted in engaging stakeholders when designing the programme and information systems, particularly the users themselves. Scaleable outcomes were set for City District Government departments emphasizing the need to be iterative rather than radical. This enabled the team to be sensitive to manual clerical systems. Through the SDLC approach i.e. participation and involvement was key at every stage of the systems design and execution. Each of the client departments such as Agriculture, Municipal Services, Revenue, Finance and Planning and Works and Services were at the forefront of the design process with technical support coming from the SDLGF project.

Requisite Competencies Most critically, locally based expertise was used by the City District Government. While initially the level of management and IT skills was scant, in parallel the IT department ran IT training programmes for officers in Government. This led to raising awareness of ICTs among officers and also improved their computer literacy skills. Local programmers and software specialists were hired to support the development of its many information systems. The use of indigenous resources saved costs, was crucial in building local capacity and providing important opportunities to a local workforce. Over a four year period significant Government capacity has been built in ICTs.

Adequate Telecommunications and Appropriate Technology Introducing provision for new technology was considered one of the most significant challenges for the City District Government. While many departments possessed computers their use was limited, and they were not being effectively used for providing information or communication solutions. Moreover, when designing many of the information systems it was important to use technology which matched local capacity and could be easily maintained.

Microsoft Windows based platforms were used for all the information systems and local officials were trained to use them. The IT department will now be responsible for providing troubleshooting and maintenance support.

IT training of female staff of CDGF

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Cost Benefit Analysis of ICT Innovations

COST BENEFIT ANALYSIS OF ICT INNOVATIONS An assessment of the costs and benefits of developing many of the information systems led systems reveals economy gains for the City District Government. Customized systems which were cheaper and simpler have saved the City District Government considerable costs, than if they had opted for more expensive off the shelf options. Therefore these systems are affordable and can be replicated in other districts at lower costs than is anticipated.

Cost of Development Within finance the FMIS and documentation management system cost the City District Government an estimated Rs 7 Million (CDGF Performance Report-6, 2007). This included both hardware and software in its development over a four year period. At the same time, these systems are now helping the Government to save annually more than Rs. 10 Million in time and costs associated with the district's financial management processes.

Similarly, in human resource management the HRMIS cost the Government approximately Rs. 5.5 Million (CDGF Performance Report-6, 2008). This is a small cost when compared to the number of person days, expenses and other costs which were being incurred by the City District Government as a result of manual, labour intensive systems.

In the Community Development department its CCB Management Information System set back the administration in the region of Rs. 4 Million (CDGF Performance Report-6, 2007).

However this system has helped to reduce the time taken to register CCBs and their respective project applications from several weeks to one week. Similarly, it has led to the department now releasing funds for approved projects within a 45 day period instead of after several months. With over 1600 CCBs in the District, these are significant inroads into the benefits of automated systems bringing widespread modernization and efficiency for the City District Government.

The cost of developing the Revenue MIS and Road MIS is Rs. 5 Million and Rs. 3.10 Million respectively. The Revenue MIS will help the department in saving Rs. 1 Million per annum through greater efficiencies.

The District's GIS has been developed in-house, using local resources and within Rs. 70 Million. This is considered to be cost-effective for a system of its kind.

Cost Comparison with Off the Shelf Solutions All the Information Systems were developed on the Microsoft Windows™ platform, using standard off-the-shelf development tools, languages and frameworks. For the storage (DAL) layer, all the systems use the Microsoft SQL Server 2000™ database engine. The reporting facilities in the systems were implemented using the Crystal Reporting™ software.

Alternative Tools There were two sets of alternative tools and technologies considered for the development of the systems:

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Cost Benefit Analysis of ICT Innovations Commercial Off-the-Shelf Solutions Commercial strength off-the-shelf financial solutions, such as Oracle™ and SAP ™, offer sophisticated modules for the development of such systems. Oracle Financials ™ and SAP ™ are designed to scale to millions of users, with high-availability (typically 4 to 5 nines).

The CDGF decided to develop their own customized systems using simpler and cheaper tools such as SQL Server, VB.net and ASP.net. There was almost a unanimous opinion among the city managers that expertise required for technologies such as SAP ™ were exceedingly difficult to find in Faisalabad. Programmers for VB.net and ASP.net are typically readily available, while the licensing cost of SQL Server and Crystal Report is substantially less than alternatives such as Oracle™ financial solutions.

Open-source Solutions The Information Systems could also have been implemented using Open-source tools and technologies. For instance, development could have been done using Linux (Fedora or Ubuntu) using Emacs, Vi or the Eclipse IDE. Likewise, MySql or Postgress could have been used for Data storage (DAL) layer.

Open source solutions have two obvious advantages:

Open source tools and technologies are typically free of cost, eliminating the recurring cost of licensing and upgrades; Open source tools are typically platform independent, permitting greater flexibility in the operational and deployment environment of the solution.

However, Open Source technologies have two subtle disadvantages:

Open Source technologies often mandate a viral license such as the GNU Public License (GPL). GPL mandates that any solution that employs a GPL'ed technology should also be released as an GPL (Open Source) technology; Open Source tools often lack proper technical support, documentation or user manuals, implicitly limiting the use of the tools to experienced developers who could understand the system by looking at its implementation.

These systems are expensive to maintain in Faisalabad and they would have been expensive to upgrade with time. Moreover, the systems were custom-designed for the specific requirements of the City District Government - releasing the system internationally, as a GPL open source technology was not within the scope of the implementation of the Information Systems.

Notwithstanding this the systems failed to match the skills sets found within the City District Government. Therefore, the CDGF decided to use common Microsoft Windows®-based development tools and technologies. Simple, less sophisticated technology was Faisalabad's requirement.

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Lessons and Reflections

LESSONS AND REFLECTIONS This section of the case study highlights a number of important lessons which are relevant to Local Governments and organisations in general when designing e-government systems.

Match Technology with Indigenous Skills It is critical to assess early on before programme design is initiated that what level of skills exist in the client organisation. In the case of Faisalabad, it became very apparent that pockets of technological capacity were present and that the prevailing culture was one of scepticism. The full potential of ICTs had not been realized. Hence there was a need to develop customized technological solutions rather than implant expensive off the shelf systems.

Use Local and Build Local Capacity and Expertise The CDGF encouraged the use of locals within Government and outside to develop and implement the programme and its systems. Using experts outside of Faisalabad would not only have been expensive but an unsustainable solution. By working with programmers and departments from within the City District Government, the significant understanding and awareness of the role of ICTs in development now rests within the City District Government.

Social, Political, Cultural and People Dimensions of E-government Developing ICT programmes and systems with simply technology in mind is a mistake and a recipe for e-government failure. ICTs and e-government programmes do not operate in a vacuum and to assume so when designing information systems or other e-government initiatives is naive. It is therefore critical to address the organizational dimensions often found in large complex Local Governments like Faisalabad. Understanding the people, the social interactions and cultural norms and sub-systems is a pre-requisite for successful information systems development and implementation. These systems break organizational boundaries and improve information flows.

Stakeholder Involvement The design and execution of e-government programmes is not the sole responsibility of the IT department. Furthermore, Faisalabad demonstrates that the IT department has the potential to make significant intellectual contributions to the development of e-government systems such as management information systems. Incremental approaches to systems development are important where stakeholders are carried as equal partners, rather than technocratic styles of management, and should be adopted where possible.

Sharing HRMIS with Education Department by DO secondary education

25

Conclusions

CONCLUSIONS In Faisalabad the City District Government has demonstrated how new information and communication technologies can make a significant contribution to the achievement of good governance goals. Through its broad governance reforms programme the City District Government deployed automated management information systems, invested in a new website and at the same time modernized its internal communication processes. These investments in ICTs have made important differences to the way the administration is governed and manages its external relationships.

However, there is much to be done and the process of complete ICT enabled transformation is as yet incomplete.

Information systems have been at the heart of the City District Government’s shift to electronically enabled local government. The systems and their deployment have been viewed as a means to an end and not an end in themselves. The crux of Faisalabad's desire to change is linked to providing better services, to that end it has been keen to explore how technology can support service provision. Inter-linked to that is to examine the way relationships, particularly external ones are configured. So, how Faisalabad can engage with citizens and society more openly and effectively therefore enable it to understand their needs.

Faisalabad now possesses management information systems for finance, human resources, CCB, revenue, roads and an integrated GIS. These were developed by the City District Government through a process of detailed consultation and incremental phased implementation over a four year period. Carefully designed with users in mind, the IT department led the process using soft systems approaches where consideration was given to 'human systems' in which such technologies exist. Furthermore, the City District Government adopted the simple SDLC approach to many of the systems developed above. Concurrently individual and departmental capacity was built in the process so that the systems are managed and run successfully beyond the life of the reforms programme.

In turn, these systems have brought about efficiency and effectiveness in service delivery for the various departments of City District Government. There is now cheaper and quicker governance that gives more than ever before. In Faisalabad's important strategic areas, finance and human resource management, departments are now producing the same outputs at a lower cost and in shorter time thus significantly improving the service delivery mechanisms. In some instances such as community development services, more outputs are being delivered at the same total cost. The Government now has an evidence-base for planning, building on the MISs. Moreover, governance is working better now. The internet provides opportunities for Government and external users alike. A higher quality of service is provided through the internet. No longer do individuals need to travel to Government offices where inefficient services are so often offered. Therefore innovative Government has emerged providing new outputs and opportunities. However challenges remain.

Over time the City District Government will need to address the digital divide and how accessibility of information to the poor can be improved. Though internet access is good, and there is evidence from Faisalabad that what it publishes is accessed, the Government has

26

Conclusions much to do in building a knowledge-based economy and society. Though significant strides have been taken by the Government through information systems, there is some way to go in achieving the gains associated with e-society. The e-government programme needs commitment from the City District Government to continue. The Government needs to develop information systems for the remaining departments like Health and Agriculture etc.

There is also needs to establish a monitoring mechanism, perhaps by constituting a committee to oversee and monitor the process of updating the information systems. Critically, Faisalabad highlights what can be done through technological innovation. These efforts can be replicated at smaller costs.

Finally it is important to remember that ICTs are not a magic wand changing the problems associated with poor governance. The role of e-government needs to be viewed within broader organizational development goals and commitment to providing quality public services. However technology must now take centre stage if Local Governments in Pakistan are to modernize.

27

Annex 1 Annex 1:

Examples of Technical and User Manuals

A1-1:

An example of technical manual

View Patwar Boudaries Details Use case Primary Actor Stakeholders and Interests Pre -conditions Post -conditions Basic Flow

User All Government Departments Logged in to the system Zoomed in to a Town Union Council 1. Select Patwar Boundary Layer 2. Select Info tool 3. Click on Patwar Boundary

Sequence diagram

User

GIS Select Patwar Boundary Layer Select Info Tool Click on Patwar Boundary Patwar Boundary Detail

Data flow diagram School Teaching

Vu_teaching _emiswise (DB: GIS)

Emp_job_detail (DB: HRMIS)

Gv_schoolteaching_sele ctedIndex (DB: HRMIS)

School_ teaching

department (DB: HRMIS)

Emp_personal_info (DB: HRMIS) workaddress (DB: HRMIS)

28

Annex 1

A1-2:

An example of user manual

Add New Road Profile In the Data entry menu under Road you have a Sub menu which shows you the option of Add New Road Profile.

On clicking on “Add New Road Profile you get the form to add the information of the new road;

To add a new road you have to: Enter all the details required in the form. Once you have filled all the information for the road. Press Insert to update the information into the system or you may press cancel when ever you wish to return to the main page without entering the information to the system.

29

Annex 2 Annex 2:

Use of Information Systems for Identifying Areas of Poor Investment

Figure A2-1:

Development Expenditure of the Health Department from July 2004 to November 2007

Chak Jhumra Town

Layallpur Town Jaranwala Town

Jinnah Town

Iqbal Town

Madina Town Sammundari Town

Tandlianwala Town

30

Annex 3 Annex 3:

Impact of HRMIS on the Critical Path of Access to Staff Strength in the Education Department

Collection of establishment strength information Before the HRMIS, the delivery of information regarding staff strength to top management took involvement of about 500 people. Delay at each stage was obvious because they needed to process information manually at each stage. Accuracy of information collected was also not authenticated, most of the time it contained errors and did not match to overall strength. Figure A3-1 illustrates the process of preparing establishment strength information of the education department before HRMIS: Figure A3-1:

Process of preparing establishment strength information before HRMIS

Deputy DEOs compile data received from 1167 female and 1304 male schools

9

Data submitted to Deputy DEOs from AEOs

8

6

AEOs collect and verify data from 1304 male schools

AEOs collect and verify data from 1167 female schools 6

7

10 Data submitted to DEOs from Deputy DEOs

z

5 Deputy DEOs pass orders to AEOs

4

11

DEOs compile data received from Deputy DEOs

DEOs pass orders to Deputy DOs and Drawing and Disbursing Officer

12

3

EDO compiled data received from DEOs

13

2

EDO Education receives orders from DO HR and passes orders to DEOs

1

DO HR submits establishment report to DCO

DCO requires updated establishment report for planning

DO HR receives order from DCO and passes to EDO Education

31

Annex 3

After the development of HRMIS, the critical path of the access to staff strength information has been streamlined into two-stage procedure. It also reduces the process to maintain the record. Now EDO, DOs and Deputy DOs have access to HRMIS. They not only use the information of recruitment, appointment, posting and transfer but also maintain and update the records in case of changes. The Establishment Strength report of HRMIS provides a unified repository of information that is updated in real-time to quickly disseminate information directly to all decision making hierarchy. Accessibility to different reports is administrated through user name and password security. Figure A3-2 illustrates the simplified critical path of the access to staff strength in the Education department in HRMIS: Figure A3-2:

Simplified critical path of the access of staff strength in HRMIS Posting/ Transfer Job record Lave record

EDO Promotion

Promotion Retirement Leave

DO DDO (Deputy Distt. Officer)

HRMIS

Reports

Establishment record Training detail

DDO Recruitment Appointment Posting Transfer

32

(Drawing & Disbursing Officer)

AEO

Retirement Performance detail Employee personal record

Bibliography

BIBLIOGRAPHY Books Heeks R (2006) Implementing and Managing E-Government: An International Text, Sage Publications Hughes O (2003) Public Management and Administration Palgrave Macmillan

Papers Escoffier and Hargreaves (2001) Making e-Governance work for Poor People: Using Information and Communication Technologies to Improve Governance in Developing and Transition Countries; Governance Department, Department for International Development (DFID) Ferguson M (2000) E-Government Strategies The Developing International Scene: Paper presented to the conference “Internet, Democracy and Public Goods� Universidade Federal de Minas Gerais Belo Horizonte, Brazil Heeks R (2001) Understanding e-Governance for Development; Institute for Development Policy and Management, University of Manchester I-Government working paper series

Reports City District Government Faisalabad (2008) Performance Report No: 6, Strategic Policy Unit, Pakistan

33

OUR OTHER PUBLICATIONS 2

1

Managing Change

Human Resource Management

for Improving Service Delivery

for Good Governance

Learning to embrace the challenge of good governance

Building local government capacity for effective service delivery

S.M. Khatib Alam Karin Tang Mahmood Akhtar

March 2008

S. M. Khatib Alam David Alan Watson Muhammad Shahid Alvi

March 2008

SelfActualization Esteem (self and others) Social Needs Safety and Security

Basic Physiological Needs

City District Government Faisalabad, Pakistan

City District Government Faisalabad, Pakistan

4

3 Financial Management

5

Union Council Profiling

for Good Governance

& Service Mapping

From Deficit to Surplus

For Pro-poor Planning & Investment

S.M. Khatib Alam Imran Yousafzai

S.M. Khatib Alam Janet Gardener Muhammad Tariq

March 2008

March 2008

Communications for Good Governance Building local government capacity for effective service delivery S.M. Khatib Alam Nadir Ehsan Humaira Khan

March 2008

150

100

Rs. Millions

50

0

-50

-100

-150

FY 2004-05

FY 2005-06

FY 2006-07

FY 2007-08 Projected

FY 2008-09 Projected

FY 2009-10 Projected

City District Government Faisalabad, Pakistan

City District Government Faisalabad, Pakistan

6

7

City District Government Faisalabad, Pakistan

8

9

Citizen Voice in Local Governance

Citizen Engagement

Promising Change

Measuring Change

The Citizen Perception Survey

in Local Governance

Six Case Studies on Whole School Development

the education research component

S.M. Khatib Alam Sumara Khan Mehreen Hosain

S.M. Khatib Alam Muhammad Tariq Mehreen Hosain

March 2008

March 2008

March 2008

Dr. Fareeha Zafar

March 2008

Dr. Fareeha Zafar

TS ES ER INT ER ITY ETH UN OG MM ING T R E O T TH GC AC OGE TIN GT OR IDIN PP ION DEC SU LTAT U S CON

M INFOR

10

G SHARIN ATION City District Government Faisalabad, Pakistan

City District Government Faisalabad, Pakistan

City District Government Faisalabad, Pakistan

12

11

City District Government Faisalabad, Pakistan

13

Teacher Training

Public Private Partnership

Management Information Systems

Enabling Joined-Up Government

in Whole School Development

in Education: from Policy to Implementation

in Local Government

Introducing Geographic Information System

Change and Transformation as a Reflective Process

Value Addition and Best Practices

Changing the dynamics of governance through ICTs

March 2008

Brigid Smith

City District Government Faisalabad, Pakistan

March 2008

Beala Jamil

City District Government Faisalabad, Pakistan

March 2008

S.M. Khatib Alam Nadir Ehsan Kashif Abbas

City District Government Faisalabad, Pakistan

March 2008

Dr. Umar Saif Muntazir Mehdi Gul Hafeez Khokhar

City District Government Faisalabad, Pakistan

All case studies including other reports can be downloaded from the web site: http://www.faisalabad.gov.pk

ABOUT THE AUTHORS S.M. Khatib Alam - Project Manager and Overall Team Leader Khatib Alam is an international management consultant with considerable experience of leading large and diverse teams on multi-disciplinary, complex and challenging projects around the world. He has a particular expertise in strategic management, organisational change management, institutional strengthening, urban development and corporate social investment. Since 2004, he has been the Overall International Team Leader on the innovative DFID funded SDLGF project.

Nadir Ehsan - Public and Private Sector Management Specialist Nadir Ehsan has a multi-disciplinary background having worked and consulted for the public, private and international NGO sectors extensively. Over the last decade he has worked in international public policy analysis, local government reform, social development and corporate social responsibility (CSR). He was the Deputy Team Leader of DFID's Strengthening Decentralized Local Government in Faisalabad Project for three years and is now based in Manila with the multi-donor Cities Development Initiatives for Asia Programme. His interests remain in local urban governance, new public management and sustainable development.

Kashif Abbas - Information Technology Specialist Kashif Abbas has been working as an IT manager on the SDLGF project since 2004.

During this time, he has been responsible for leading a team to design, test and implement all the information systems at CDGF. He has also established a computer network for the SPU as well as oversee the design of the SPU and Faisalabad web sites.

His responsibility has extended to recruiting local and national IT graduates and developing their capacity to undertake information systems related work.

City District Government Faisalabad DCO Office, Near Iqbal Stadium Faisalabad, Pakistan Tel: +92 (0) 41 9200205 Fax: +92 (0) 41 9200206 E-mail: email@faisalabad.gov.pk Internet: http://www.faisalabad.gov.pk

Strategic Policy Unit 2nd Floor, DCO Office Near Iqbal Stadium, Faisalabad Pakistan Tel: +92 (0) 41 9201256 Fax: +92 (0) 41 9201257 E-mail: email@spu.com.pk Internet: http://www.spu.com.pk

Management Consultants GHK International Ltd. 526 Fulham Road, London, SW6 5NR United Kingdom Tel: +44 (0) 20 74718000 Fax: +44 (0) 20 7736 0784 E-mail: email@ghkint.com Internet: http://www.ghkint.com Internet: http://www.ghkpak.com