programs, focus on core processes, and e-learning. The results of the CRA suggested that this highly elaborated approach to training was significant in promoting engagement with change among MoF staff.

A further issue in workforce enablement is the incentivization of employees. Monetary incentives were considered to be the most significant; these needed to be continued after the change was implemented to ensure continued adherence to new business operating procedures. There was a risk that the government might not have the budget or even the willingness to provide this monetary incentive due to budget constraints or in the context of any deterioration in the economic situation. However, following the modernization of KPPN (payment) offices in support of PFM reform in 2007, incentives in the form of additional allowances resulting in higher monthly take-home pay were rolled out to all staff working in DG Treasury and DG Budget, starting with those who worked in payment offices deemed “excellent” (or “KPPN Percontohan”).

**4. Conclusion: What Does the Study of FMIS Suggest about the Contribution of Political Economy Analysis to Change Management?**

This study has investigated the claim that combining change management tools with political economy analysis can provide an improved approach to promoting governance reform, with specific reference to the implementation of FMIS in Cambodia and Indonesia. The discussion proceeded from the following premises:

1. Political economy analysis can offer an assessment of whether there is a window of opportunity for reform to take place in a particular political, social and economic context.

2. Political economy analysis can also offer a detailed assessment of the various social forces that will tend to support or resist change, and the relative resources of power that different social forces have at their disposal to promote, block or somehow influence the course of reform.

3. Given that any reform context is likely to include forces for and against, the field of reform is a contested site, where outcomes are at least to some extent contingent. In this context, change management can make a difference, but is more likely to be effective in promoting particular outcomes if strategies and activities are tailored to transforming or supporting key groups.

In both the Cambodia and Indonesia cases, change management strategies were employed to facilitate the implementation of FMIS in support of public financial management reform, but late in the day and with insufficient resources, particularly in Cambodia. At issue in both cases were the questions of whether FMIS would be implemented and used, and whether this would set in motion wider programs of public financial management reform. The empirical record suggests that in both cases, FMIS has been implemented and used, and the Task Team estimates that about 20% or so efficiency gain has been achieved in both cases. In Indonesia, the adoption of IFMIS SPAN has certainly been a key part of a broader and highly complex story of improvements in public financial management. In Cambodia, the adoption of the FMIS also represents a shift in the way public finance is managed and more efficiencies are expected to be realized as operating processes continue to adapt. The uptake of the system by the central ministry and provincial treasuries has been more enthusiastic than anticipated and that momentum is building for a reorganization of operating procedures as a result. Consequently, both cases represent qualified success.

28