development. Hughes et al. (2017, 10) noted that the term can also be viewed more broadly as “representing a level of confidence and familiarity with new processes, systematic learning, and an acceptance of new ways of doing things as appropriate and valid means of achieving common goals.”

Progressing through the stages of PFM reform and improvement outlined in volume IV, it is important to be mindful of the need to manage change in the context of these five elements if implementation and PFM improvement are to be successful. Users should consider the usefulness of other guidance materials available to develop and support their approach to change management, including Managing Change in PFM System Reforms: A Guide for Practitioners (Schick 2015) and the work by Hughes et al. (2017).


It is recommended that the government formally appoint a dedicated, full-time, core government team (of, say, two or three officials) responsible for the design and development of PFM reform initiatives and action plan. This PFM reform team would facilitate the process of identifying, prioritizing, and sequencing reform initiatives in consultation with all relevant and interested stakeholders.

This PFM reform team should be headed by a team leader who is accountable for preparing, implementing, and monitoring reform efforts and for reporting progress to senior management.

Creating a full-time team will enable the officials to be focused on the development and implementation of reform without the burden and potential distraction of other day-to-day activities of the government. Core team members should be experienced with PFM issues and familiar with the PEFA methodology, PEFA assessment results, and volume IV guidelines of the PEFA handbook. They should be able to share this knowledge and build the capacities of other government officials.

The team leader should have regular access to senior managers and political authorities to discuss options for PFM reform. The team should allow sufficient time for design, prioritization, and sequencing, enabling all stakeholders to be consulted and reform initiatives and plans to be agreed upon. In this regard, it is important for the team to build “strategic alliances” with the legislature, nongovernmental organizations, media, and general public to generate traction for implementation.


The PEFA Secretariat is planning to pilot test the application of the guidance of volume IV in selected volunteer countries. Lessons learned from the pilot testing will be incorporated into the final published version of the guidance.