CENTRAL BANKING
Central banks are unique institutions. But like all modern organisations they must achieve, and demonstrate, effectiveness and efficiency. Changing times demand improved governance and better strategic management. To enhance their governance and make strategic change successful, central banks need a rare blend of expertise. John Mendzela uniquely combines deep specialism in central banking with wide commercial skills and experience.
John Mendzela brings independent insight and fresh thinking to change management in central banks. He has worked with a diverse range of central banks in developed, developing and transition economies (see project outlines below). John is available - in person or via telecommunications - for seminars, workshop facilitation, assistance with strategic management, and confidential governance and management advice. Please contact john.mendzela@mendhurst.com.
Click on the buttons below to view ideas and tools John Mendzela has developed specifically for central banks:
Improving Institutional Governance in Central Banks
Managing Central Banks for Tomorrow
Management Lessons from the 2007 Crisis
Managing the 21st Century Central Bank
Leadership in Central Banking
Why Change?
Good Practice Accounting and Reporting
IMF Study: Improving CB Management
Served as senior adviser to the President and Vice-President of the European Central Bank during a comprehensive zero-based
review of the ECB's effectiveness and efficiency. Designed processes to evaluate manager proposals and generate specific
change initiatives. Gave independent advice on proposals to support final decision-making.
Outcome: net resource savings, rebalancing of staff resources across core functions, structural changes to support functions, reliable information on outputs and costs
Led in-house organisational transformation of the Reserve Bank of New Zealand, attaining recognised world leadership in central bank management. Practically applied business management concepts to central banking. Planned strategic and cultural change, developed new management systems and designed mechanisms for funding accountability to government. Managed accounting/banking/payroll services to help consolidate operational change.
Outcome: more effective core functions, business management of non-core functions, new statutory framework and management information systems, operating expenses cut 46%, staff numbers down 39%, management structure flattened, award-winning accounting and reporting
(See IMF work paper WP/94/37 on this site)
Advised on design and planned implementation for a multi-year change programme to increase accountability and build a performance-based culture at the Reserve Bank of Fiji. Supported design and implementation of new organisation structure, job roles, appointment processes, contracts and remuneration. Provided tools to develop and maintain effective performance management. Later, independently evaluated change programme results for the Board and advised on change consolidation.
Outcome: shared management-staff agenda, comprehensive re-structuring around core functions, competency-driven job roles and selection processes, improved management systems, quality assurance for internal work, targeted initiatives to embed new culture
Comprehensively reviewed functions, organisation structures, resources and management systems for the National Bank of Poland. Suggested change initiatives to advance efficiency and management while continuing technical excellence. Outlined a plan for institutional development to support constant improvement of operations. Helped design a strategic planning and management framework and advised on governance and management processes to oversee and implement the strategic plan.
Outcome: key issues assessed and practical first steps identified. Guidelines, processes, roles and directions for longer-term change established
Prepared strategic change plan and provided technical inputs for comprehensive change at the Bank of Papua New Guinea. Worked with internal change team and successive Governors to develop and implement new organisation structure and culture. Independently facilitated staff consultations. Designed and helped implement new job roles, appointments and contracts. Integrated staff performance management with contracts, remuneration, training programmes and job documentation. Later, evaluated departmental effectiveness and gave quality assurance for new management systems.
Outcome: flatter service-driven organisation, clear and relevant job roles, staff and union support for change, competency-based appointments, performance-oriented contracts and remuneration structure, simpler and better staff management
Designed a framework for institutional risk management for a developing country central bank, and helped with implementation. Incorporated traditional financial risk and audit controls, but emphasised monitoring and management of non-financial institutional risks such as reputation. Clearly linked responsibilities and processes for risk management to broader governance and management roles.
Outcome: practical, comprehensive and integrated processes for risk management
Provided facilitation, advice and quality assurance for strategic planning, organisation structures and management systems in individual central banks, including:
European Central Bank, an institution moving from intense project challenges and an effectiveness priority to more mature and optimised operations
Central Bank of Brazil, an increasingly independent central bank with diverse and expanding responsibilities that is working to advance its capability and culture
Bank Indonesia, an extensively modernised central bank seeking advice on industry trends and ideas for its strategic planning and leadership development
Sweden's Riksbank, a leader in central bank modernisation seeking an independent perspective on its strategic planning and management
Outcome: fresh, independent and appropriately confidential perspectives to enhance institutional relevance, effectiveness and efficiency .
Added new central bank management and accounting components of International Monetary Fund’s worldwide technical assistance to central banks. Led specific country programmes. Assured quality for management and accounting work initiated by IMF country managers or directly by central banks.
Outcome: better understanding of management and institutional implications of policy reforms, practical national and multinational implementation plans
Advised on organisation, management and resources for newly independent central banks in the former Soviet Union. Helped coordinate cross-country introduction of new accounting concepts and systems.
Outcome: new organisational designs, management systems/skills and resource needs assessed, simple and effective accounting practices
Planned and facilitated introduction of new management-by-objective systems at the Reserve Bank of Malawi
Outcome: delegated planning and budgeting processes, comprehensive management accounting systems, clear change directions for management systems and non-core functions
Conducted function, organisation, management and resource review for the National Bank of Hungary
Outcome: new organisational design, change paths and project plan for management systems and organisational change
Planned implementation of a new computerised inter-bank payments system for a Middle Eastern central bank. Led implementation team, trained specialist operational unit, documented new processes and systems.
Outcome: key features of successful implementation planned and established
Remedied serious failings in accounting processes, systems and reporting at a central bank with no auditable accounts and uncertain solvency
Outcome: causes identified, financial position assessed, reporting and controls established
Planned projects to modernise payments systems and border services for developing Asian nations
Outcome: practical plans to apply modern technology within environmental constraints
Other services performed for a range of central bank clients include:
Design and facilitation of workshops and focus groups for teams of middle managers and staff
Outcome: specific action plans to respond to change demands
Development of conference presentations and technical resources on change leadership and management for central banks and regulatory agencies
Outcome: practical guidance on making strategic change successful
Confidential referees can be made available to prospective clients.
