A functional review is a review of the core functions within a sector, usually focused at the level of a Ministry or Department at central or sub-national levels involving a review of one or more of the following: (i) policy appropriateness (ii) efficiency (iii) upstream program effectiveness or (iv) downstream organizational reviews and business process re-engineering. Reviews are conducted when there is concern that the policy framework and its relation to the delivery of basic and essential services either impedes, or is impeded by, ineffective and inefficient institutional structures and staffing capacities. Reviews should be fully integrated with Public Expenditure Reviews (PERs) to be undertaken where possible.

In support of public sector modernization it will be essential to conduct functional reviews to support strategic reform and restructuring to improve service delivery and shape decentralization. This short guideline aims presents a Nine Step Approach that can be used as a guideline in the context if post conflict and weak and fragile states.