Publication:
Change Management That Works: Making Impacts in Challenging Environments

Loading...
Thumbnail Image
Files in English
English PDF (942.89 KB)
1,009 downloads
English Text (134.56 KB)
64 downloads
Published
2017-12
ISSN
Date
2017-12-07
Editor(s)
Abstract
Achieving better governance has been a central problem for development. When public services are not delivered as intended, reform action becomes necessary and that involves deliberate activities to change laws, structures, and processes to improve public sector performance and benefit public service users. The key challenge is that changes in the design of the institution or its procedures do not necessarily translate into immediate changes in the behavior of relevant actors. A central problem of public sector reform is ensuring that changes in laws and policies also prompts changes in the way that people work, so that service delivery improves. There is no one-size-fits-all approach ensuring that change happens the desirable way; however, experiences from the field suggest that a useful combination of political economy analysis with change management tools can help to maximize positive impacts. Different contexts will require different approaches to change management, and therefore political economy analysis can be used productively to design a targeted change management strategy that builds on existing strengths and opportunities. Greater integration of political economy analysis into change management assessments has been helpful in deepening understanding of attitudes to change within these particular contexts. This has allowed more effective leveraging of the opportunities for reform through the more systematic tailoring of change management strategies to different sets of issues emerging among particular groups of actors. Cambodia and Indonesia, the case studies presented in the paper, help to illustrate this.
Link to Data Set
Citation
Hughes, Caroline; So, Sokbunthoeun; Ariadharma, Erwin; April, Leah. 2017. Change Management That Works: Making Impacts in Challenging Environments. Policy Research Working Paper;No. 8265. © World Bank. http://hdl.handle.net/10986/28988 License: CC BY 3.0 IGO.
Associated URLs
Associated content
Report Series
Report Series
Other publications in this report series
  • Publication
    Climate and Social Sustainability in Fragility, Conflict, and Violence Contexts
    (Washington, DC: World Bank, 2026-01-07) Cuesta Leiva, Jose Antonio; Huff, Connor
    Climate change is widely recognized as a driver of violent conflict, but its broader social effects remain less understood. Ignoring these dimensions risks a vicious cycle where climate policies might undermine socially just adaptation. Evidence is still limited on how climate shocks influence political participation, trust, or migration. This paper helps fill that gap by examining links between climate change, conflict, and social sustainability, with a focus on inclusion, resilience, cohesion, and legitimacy. Using secondary data from 2019–24, the study applies simple correlation-based methods to test three hypotheses on the nature, severity, and composition of these associations. The analysis combines multiple climate impact measures, new conflict classifications, recent social sustainability frameworks, and controls for population and geography. The results reveal strong correlations—not causation—between climate events and contexts of fragility, conflict, and violence. Climate impacts are most pronounced in both national and subnational conflict settings. The study also finds robust links between fragility, conflict, and violence and low levels of social sustainability, reflecting its role as both a driver and consequence of conflict. Some dimensions—such as violent events and insecurity—appear weaker in areas most affected by climate shocks. Two of the hypotheses are supported, and one remains inconclusive.
  • Publication
    The Macroeconomic Implications of Climate Change Impacts and Adaptation Options
    (Washington, DC: World Bank, 2025-05-29) Abalo, Kodzovi; Boehlert, Brent; Bui, Thanh; Burns, Andrew; Castillo, Diego; Chewpreecha, Unnada; Haider, Alexander; Hallegatte, Stephane; Jooste, Charl; McIsaac, Florent; Ruberl, Heather; Smet, Kim; Strzepek, Ken
    Estimating the macroeconomic implications of climate change impacts and adaptation options is a topic of intense research. This paper presents a framework in the World Bank's macrostructural model to assess climate-related damages. This approach has been used in many Country Climate and Development Reports, a World Bank diagnostic that identifies priorities to ensure continued development in spite of climate change and climate policy objectives. The methodology captures a set of impact channels through which climate change affects the economy by (1) connecting a set of biophysical models to the macroeconomic model and (2) exploring a set of development and climate scenarios. The paper summarizes the results for five countries, highlighting the sources and magnitudes of their vulnerability --- with estimated gross domestic product losses in 2050 exceeding 10 percent of gross domestic product in some countries and scenarios, although only a small set of impact channels is included. The paper also presents estimates of the macroeconomic gains from sector-level adaptation interventions, considering their upfront costs and avoided climate impacts and finding significant net gross domestic product gains from adaptation opportunities identified in the Country Climate and Development Reports. Finally, the paper discusses the limits of current modeling approaches, and their complementarity with empirical approaches based on historical data series. The integrated modeling approach proposed in this paper can inform policymakers as they make proactive decisions on climate change adaptation and resilience.
  • Publication
    Institutional Capacity for Policy Implementation: An Analytical Framework
    (Washington, DC: World Bank, 2026-01-07) Kim, Galileu; Kumar, Tanu; Ramalho, Rita; Russell, Stuart
    State capacity is an important prerequisite for policy implementation, yet at the country level it is difficult to measure, assess, and reform. This paper proposes a focus on institutional capacity: the ability of public institutions to implement the specific policy mandates for which they are responsible. Based on a review of existing literature, the paper defines the different dimensions that compose institutional capacity and groups them into two cross-cutting categories: organizational dimensions (personnel, financial resources, information systems, and management practices) and governance dimensions (transparency, independence, and accountability). The paper proposes measures for organizational and governance dimensions using existing data, shows intra-institutional variation of these measures within countries, and discusses how new data could be collected for better measurement of these concepts. Finally, the paper illustrates how the framework can be used to diagnose the sources of common problems related to weak policy implementation.
  • Publication
    South Africa’s Fragmented Cities: The Unequal Burden of Labor Market Frictions
    (Washington, DC: World Bank, 2026-01-08) Baez, Javier E.; Kshirsagar, Varun
    Using high-resolution administrative, census, and satellite data, this paper shows that South African cities are characterized by spatial mismatches between where people live and where jobs are located, relative to 20 global peers. Areas within 5 kilometers of commercial centers have 9,300 fewer residents per square kilometer than expected, which is 60 percent below the global median. Poor, dense neighborhoods are most affected. In Johannesburg, a 10-percentile increase in distance from the nearest business hub corresponds to a 3.7-percentile drop in asset wealth (a proxy of household wellbeing) and 4.9-percentile drop in employment. In Cape Town, the declines are 4.0 and 3.7 percentiles, respectively. Employment is 87 percent lower in the poorest decile than the richest in Johannesburg and 61 percent lower in Cape Town. These findings suggest that South Africa’s spatial organization of people and economic activity constrains agglomeration and reinforces inequality. This methodology provides a scalable and standardized data-driven framework to analyze spatial accessibility and agglomeration frictions in complex, data-constrained urban systems.
  • Publication
    Investment in Emerging and Developing Economies
    (Washington, DC: World Bank, 2026-01-07) Adarov, Amat; Kose, M. Ayhan; Vorisek, Dana
    The world faces a pressing challenge to meet key development objectives amid slowing growth and rising macroeconomic and geopolitical risks. With the number of job seekers rising rapidly, infrastructure shortfalls continuing to be large, and climate costs mounting, the case for a significant investment push has never been stronger. Yet the capacity to respond in many emerging markets and developing economies has eroded. Since the global financial crisis, investment growth has slowed to about half its pace in the 2000s, with both public and private investment weakening. Foreign direct investment inflows—a critical source of capital, technology, and managerial know-how—have also fallen sharply and become increasingly concentrated, leaving low-income countries with only a marginal share. The risks of further retrenchment are significant, as trade tensions, policy uncertainty, and elevated debt levels continue to weigh on investment. Reigniting momentum will require ambitious domestic reforms to strengthen institutions, rebuild macro-fiscal stability, and deepen trade and investment integration—the foundations of a supportive business climate. At the same time, international cooperation is indispensable. A renewed commitment to a predictable system of cross-border trade and investment flows, combined with scaled-up financial support and sustained technical assistance, is essential to help emerging markets and developing economies—especially low-income countries and economies in fragile and conflict situations—bridge financing gaps and implement the domestic reforms needed to restore investment as an engine of growth, jobs, and development.
Journal
Journal Volume
Journal Issue

Related items

Showing items related by metadata.

  • Publication
    Alternative Paths to Public Financial Management and Public Sector Reform
    (Washington, DC: World Bank, 2018-06-26) So, Sokbunthoeun; Woolcock, Michael; April, Leah; Hughes, Caroline; Smithers, Nicola; So, Sokbunthoeun; Woolcock, Michael; April, Leah; Hughes, Caroline; Smithers, Nicola
    Reforming public-sector organizations--their structures, policies, processes and practices--is notoriously difficult, in rich and poor countries alike. Even in the most favorable of circumstances, the scale and complexity of the tasks to be undertaken are enormous, requiring levels of coordination and collaboration that may be without precedent for those involved. Entirely new skills may need to be acquired by tens of thousands of people. Compounding these logistical challenges is the pervasive reality that circumstances often are not favorable to large-scale reform. Whether a country is rich or poor, the choice is not whether, but how, to reform the public sector--how optimal design characteristics, robust political support, and enhanced organizational capability to implement and adapt will be forged over time. This edited volume helps address the “how” question. It brings together reform experiences in public financial management and the public sector more broadly from eight country cases in East Asia: Cambodia, Indonesia, Lao People's Democratic Republic, Malaysia, Myanmar, Papua New Guinea, Thailand, and Vietnam. These countries are at different stages of reform; most of the reform efforts would qualify as successes, while some had mixed outcomes, and others could be considered failures. The focus of each chapter is less on formally demonstrating success (or not) of specific reform, but on documenting how reformers maneuvered within different country contexts to achieve specific outcomes. Despite the great difficulty in reforming the public sector, decision-makers can draw renewed energy and inspiration, learning from those countries, sectors, and subnational spaces where substantive (not merely cosmetic) change has been achieved, and they can identify what pitfalls to avoid.
  • Publication
    Disaster Resilient and Responsive Public Financial Management
    (World Bank, Washington, DC, 2021-10-01) April, Leah; Zrinski, Urska
    Public financial management (PFM) is one of the key government instruments of supporting effective preparation, response, and resilience to disasters. Yet many PFM institutions, systems, and processes lack disaster resilience and responsiveness. In times of growing awareness of the impacts of climate change on good governance as well as the impacts of the recent COVID-19 pandemic on the way public finances are planned, executed, and accounted for, governments need to be able to optimize the allocation and execution of public resources. Disaster resilient and responsive public financial management (DRR-PFM) promotes (i) proactive and planned disaster risk reduction and climate change adaptation; and (ii) timely and fiscally prudent response and recovery from natural disasters and other shocks and stresses. Fiscal response to disasters in the Caribbean is neither strategic nor efficient in most instances, and emergency finance procedures are often undocumented, ad hoc, coincidental and sometimes inefficient. Surprisingly, given the frequency of natural disasters in the Caribbean, national authorities provide little guidance on how to expedite public financial, public procurement, and public investment management to swiftly respond to or rebuild after disasters. Public assets are not systematically tracked and are financially under-protected, making it difficult to quickly carry out accurate post-disaster needs assessments or to replace destroyed assets.
  • Publication
    Working with the Private Sector for Child Health
    (World Bank, Washington, DC, 2002-06) Waters, Hugh; Hatt, Laurel; Axelsson, Henrik
    This document assesses the current importance and potential of the private sector in contributing to child health. In many countries private and non-governmental providers are more commonly consulted for child health illnesses than public providers are. Even poor families often use private sector services. Families spend relatively large amounts of money for curative services in the private sector, even when there are cheaper public sector alternatives available. However, in many settings private providers are poorly regulated and the technical quality of the services they provide is questionable. This document focuses on the role of the private sector in the direct provision of child health services. The private sector clearly has a much broader potential role in many other areas related to and supporting the provision of child health services-including the provision of ancillary services, training of health professionals (both pre-service and in-service), communication services, and financing of health care. The potential of the private sector in each of these areas is touched on in this document, but a detailed treatment of each of these important topics is beyond the scope of the paper. Financing of health care and services is a particularly complex topic. In most countries, the private sector has an important role to play in financing both recurrent health service costs and investment costs.
  • Publication
    Sub-Saharan Africa - Managing Land in a Changing Climate : An Operational Perspective for Sub-Saharan Africa
    (World Bank, 2010-05-01) World Bank
    Livelihoods, food security, and development processes in Sub-Saharan Africa are highly dependent on land management practices to generate natural ecosystem goods and services. Out of a total population of about 717 million people, almost 60 percent depend for their livelihood on agriculture, hunting, fishing, or forestry. However, unsustainable land management already is leading to large-scale land degradation trends, which pose a threat to food security and poverty alleviation in Sub-Saharan Africa. Climate change threatens to exacerbate and add to the existing vulnerabilities. Evidence has shown that the number of people affected by climate variability, through floods and droughts, is already increasing. Much-needed increases in agricultural production have, as a result, been unrealized. These outcomes place smallholder farmers, who depend largely on rainfed agriculture, in highly vulnerable circumstances under climate-change predictions. The objective of this work is to improve practical knowledge resources for Sub-Saharan African countries, regional institutions, and development practitioners at the World Bank and other partner institutions to help them make informed decisions about: (i) the risks posed by climate variability and change to land-resource-dependent livelihoods in Sub-Saharan Africa; and (ii) Sustainable Land and Water Management (SLWM) approaches and practices that are best suited for meeting development objectives while also addressing the challenge posed by climate-change adaptation and mitigation.
  • Publication
    Moldova : Public Economic Management Review
    (Washington, DC, 2003-03-24) World Bank
    Unfavorable initial conditions, and extreme vulnerability to external shocks, as experienced by Moldova's economic transition, culminated in the 1998 regional financial crisis, which fostered the need for radical fiscal retrenchment, namely, reductions in social sectors expenditures. Currently, and despite a seemingly reasonable, attainable growth, the challenge for the Government is to improve basic outcomes in social sectors, and address inequities in access to basic social services. Key recommendations in this report suggest: a) launching a major program of public service reform; b) strengthening the government decision-making process, through the introduction of a system of Cabinet Committees, and the restructuring of the State Chancellery into a non-political Government Secretariat; c) strengthening strategic prioritization in budget formulation, through a structured approach to developing, and implementing the Medium Term Expenditure Framework; d) strengthening the budget process, through increased budget coverage - deepening Treasury coverage - and setting a stronger, internal/external accountability framework. Similarly, recommendations call for a strengthened civil service management, by amending the Civil Service Law, securing the application of key merit principles, and de-politicization, while launching a functional program to rationalize government structures. Furthermore, sector-specific reforms in the social sectors should be accelerated, particularly for education and social assistance, balancing basic education, primary health care, and emergency services.

Users also downloaded

Showing related downloaded files

  • Publication
    Digital Progress and Trends Report 2023
    (Washington, DC: World Bank, 2024-03-05) World Bank
    Digitalization is the transformational opportunity of our time. The digital sector has become a powerhouse of innovation, economic growth, and job creation. Value added in the IT services sector grew at 8 percent annually during 2000–22, nearly twice as fast as the global economy. Employment growth in IT services reached 7 percent annually, six times higher than total employment growth. The diffusion and adoption of digital technologies are just as critical as their invention. Digital uptake has accelerated since the COVID-19 pandemic, with 1.5 billion new internet users added from 2018 to 2022. The share of firms investing in digital solutions around the world has more than doubled from 2020 to 2022. Low-income countries, vulnerable populations, and small firms, however, have been falling behind, while transformative digital innovations such as artificial intelligence (AI) have been accelerating in higher-income countries. Although more than 90 percent of the population in high-income countries was online in 2022, only one in four people in low-income countries used the internet, and the speed of their connection was typically only a small fraction of that in wealthier countries. As businesses in technologically advanced countries integrate generative AI into their products and services, less than half of the businesses in many low- and middle-income countries have an internet connection. The growing digital divide is exacerbating the poverty and productivity gaps between richer and poorer economies. The Digital Progress and Trends Report series will track global digitalization progress and highlight policy trends, debates, and implications for low- and middle-income countries. The series adds to the global efforts to study the progress and trends of digitalization in two main ways: · By compiling, curating, and analyzing data from diverse sources to present a comprehensive picture of digitalization in low- and middle-income countries, including in-depth analyses on understudied topics. · By developing insights on policy opportunities, challenges, and debates and reflecting the perspectives of various stakeholders and the World Bank’s operational experiences. This report, the first in the series, aims to inform evidence-based policy making and motivate action among internal and external audiences and stakeholders. The report will bring global attention to high-performing countries that have valuable experience to share as well as to areas where efforts will need to be redoubled.
  • Publication
    Mining Royalties : A Global Study of Their Impact on Investors, Government, and Civil Society
    (Washington, DC: World Bank, 2006) Otto, James; Andrews, Craig; Cawood, Fred; Doggett, Michael; Guj, Pietro; Stermole, Frank; Stermole, John; Tilton, John
    Mineral sector regulatory and fiscal systems have been undergoing major reforms across the globe. This book focuses on information and analysis relating to mineral royalties. It provides a general discussion of the concepts behind mining taxation, a guide to royalties, examples of royalty calculations and the ways in which these interact with other forms of taxation, as well as financial effects on investments under varying conditions. Primary information includes royalty legislation from over forty nations. The book discusses implications for investors and governments of various tax regimes and provides specific country case examples. A chapter is included on transparency, governance, and management of revenue streams. The appendices, in the second volume, contain brief summaries and selected statutes relating to royalties in a broad cross-section of nations around the world; sample spreadsheets of the results of mine models that were analyzed; and examples of administrative and distributional approaches to collecting royalties.
  • Publication
    International Financial Reporting Standards : A Practical Guide, 5th Edition
    (World Bank, 2009) Van Greuning, Hennie
    The publication of this fifth edition coincides with the convergence in accounting standards that has been a feature of the international landscape since the global financial crisis of 1998. The events of that year prompted several international organizations, including the World Bank and the International Monetary Fund, to launch a cooperative initiative to strengthen the global financial architecture and to seek a longer-term solution to the lack of transparency in financial information. A conscious decision has been made to focus on the needs of executives and financial analysts in the private and public sectors who might not have a strong accounting background. This publication summarizes each standard so managers and analysts can quickly obtain a broad overview of the key issues. Detailed discussion of certain topics has been excluded to maintain the overall objective of providing a useful tool to managers and financial analysts. In addition to the short summaries, most chapters contain basic examples that emphasize the practical application of some key concepts in a particular standard. This text provides the tools to enable an executive without a technical accounting background to: (1) participate in an informed manner in discussions relating to the appropriateness or application of a particular standard in a given situation, and (2) evaluate the effect that the application of the principles of a given standard will have on the financial results and position of a division or of an entire enterprise.
  • Publication
    Global Economic Prospects, June 2025
    (Washington, DC: World Bank, 2025-06-10) World Bank
    The global economy is facing another substantial headwind, emanating largely from an increase in trade tensions and heightened global policy uncertainty. For emerging market and developing economies (EMDEs), the ability to boost job creation and reduce extreme poverty has declined. Key downside risks include a further escalation of trade barriers and continued policy uncertainty. These challenges are exacerbated by subdued foreign direct investment into EMDEs. Global cooperation is needed to restore a more stable international trade environment and scale up support for vulnerable countries grappling with conflict, debt burdens, and climate change. Domestic policy action is also critical to contain inflation risks and strengthen fiscal resilience. To accelerate job creation and long-term growth, structural reforms must focus on raising institutional quality, attracting private investment, and strengthening human capital and labor markets. Countries in fragile and conflict situations face daunting development challenges that will require tailored domestic policy reforms and well-coordinated multilateral support.
  • Publication
    Commodity Markets Outlook, October 2025
    (Washington, DC: World Bank, 2025-10-29) World Bank
    Commodity prices are expected to decline by about 7 percent overall this year, reflecting subdued global economic activity, elevated trade tensions and policy uncertainty, ample global supply of oil, and weather-related supply shocks. In 2026, commodity prices are forecast to fall by a further 7 percent, a fourth consecutive year of decline, as global growth remains sluggish and the oil market oversupplied. Energy price movements are envisaged to continue contributing to global disinflation in 2026. Metals and minerals prices are expected to remain stable in 2026, while agricultural prices are projected to edge down, primarily due to strong supply conditions. Precious metals prices are expected to rise another 5 percent, after a historically large, investment-driven rally of about 40 percent in 2025. Risks to the commodity price projections are tilted to the downside. Key downside risks include weaker-than-expected global growth, a longer-than-assumed period of economic policy uncertainty, and additional oversupply of oil. Upside risks include intensifying geopolitical tensions, the market impact of additional oil sanctions, supply reductions stemming from additional trade restrictions, unfavorable weather conditions, faster-than-expected rollout of new data centers. Commodity price volatility in recent years has revived interest in supply management via international commodity agreements. Historical experience, however, shows that the most effective policy is to promote diversification, innovation, transparency, and market-based pricing—measures that build lasting resilience to commodity price volatility.