Government of St Lucia Conference: “Improving Public Service Performance”

Castries, St LuciaNovember 2 – 3 , 2009

Government departments providing services too centralised, bureaucratic & unresponsive to clients needs

Government & public unhappy with inefficiency & unresponsiveness, especially with poor quality of customer services

Managers had too little control over resources to ensure their departments would perform efficiently

Staff poorly trained & competencies lowThis phase of reform was in the aftermath of

financial sector collapse and FINSAC bailout programme

Jamaica sought to achieve through its reforms: Effectiveness Efficiency Economy

and, therefore, to achieve best performance… Transparency and accountability

envisaged positive impacts from separating policy from operations & granting significant autonomy to managers

GOJ identified UK (Next Steps), NZ & Canadian initiatives as basis for reform

Particular interest in potential from Executive Agencies

New course of direction in policy Enhance efficiency & effectiveness Isolate some forms of specific policy

or regulation from ad hoc intervention by the executive

Source: Rob Laking, Agencies: their benefits & risks (draft OECD paper, 2002)

improve service delivery to internal & external clients/consumers reduce centralisation of control delegate authority to managers in civil service departments or

agencies disaggregate public bureaucracies into managerially autonomous

agencies focus on performance management & measurement staff competencies to produce the outputs determined for each

agency emphasis on outputs & outcomes, not inputs systems & structures to enhance effective policy & service

delivery (shift from process to results in control & accountability) contract out services that private sector could run more efficiently enhance efficiency & effectiveness of ministries for policy

guidance divest or abolish functions & services where no need or demand

An organisation under some form of government ownership where the government is principal in the relationship & the organisation is the agent

Features include: negotiated contractual

agreements between principals & agents where the principal gives the agent defined amounts of autonomy – through formal delegations of authority – over resources to produce defined results

different organisational & governance arrangements to suit the circumstances

different funding sources (e.g., Consolidated Fund or revenue raising, or a mix)

Clear operational responsibilities Government controls service delivery outputs, not

inputs Accountability arrangements, especially for

performance, are direct & clear & CEOs usually report directly to their portfolio Ministers

Operational can be performed separately from policy responsibilities

Should not be requirement to make surplus, especially where monopoly, but full recovery of costs where identifiable customers (i.e., where efficient)

Should define & cost outputs

GOJ commissioned a report that led to: enabling legislation providing for decentralised management

of new Agencies (Executive Agencies Act 2001) ministers accountable in Parliament for each Agency & its

core ministry/department legislation to override all existing statutes establishing any

statutory body & set out clearly CEOs’ responsibilities reforms aiming to achieve accountability for performance &

for use & prudent management of public funds agencies’ performance to be measurable ministers to publish relevant Agency outputs legislation demarcating relationships between Agencies and

key Government stakeholders & defining CEOs’ autonomy interim EAs created immediately under existing, relevant

constitutional & legislative provisions GOJ wanted legislation for clarity of roles & stability of model

Policy decision to modernise existing functions of Government

Identify the best options for the future of existing functions

How? First undertake the ‘prior options review’ Then complete the detailed diagnostic study

(strategic review) of the core functions identified for the new Agency to decide what is needed to perform them

Preparation of: Modernisation Plan Medium Term Financing Plan Framework Document Performance Agreement

Economic & allocative efficiency

Equity, justice, fairness Security Competitiveness &

contestability Guaranteed sustainability of

service where public interest criteria, even in competitive market

Potential failure of privatised services

Transaction costs of contracting What else?

Detailed plan to provide for all the needs & requirements for an existing public body to become an Executive Agency, including:

Change management Performance & accountability definition Human resources management & organisation structure Financial resources management Management Information Systems, including Information

Technology & Systems (business process) Legislative & regulatory Physical resources

Overview of current financial position of the existing entities

Expenditure forecasts for the modernisation programme (including equipment, accommodation, “rightsizing” through recruitment & replacement, accommodation)

Framework Document Performance Agreement Portfolio PSs to monitor & review

Executive Agencies’ performance & advise Minister but no direct contractual relationship between PS & CEO (viz., policy & operational/ service delivery functions separated)

Framework agreement between Minister & Executive Agency CEO setting performance requirements & expectations between them for the Agency (including rewards & sanctions)

Governance & accountability arrangements including internal & external stakeholders

Mission, strategic objectives, key performance (& change management if any) indicators, outputs

HR, financial & support systems requirements

Provisions for review of Framework Document & for appointment of Advisory Boards

Accountability for performance…

PA primary mechanism to help parties reach agreement on ingredients of CEOs’ individual performance requirements, covering personal responsibilities, assessment & evaluation & should:

be used as basis for informal mechanisms for parties to exchange information on progress;

codify the ‘one-on-one’ relationship between Minister & CEO, covering reciprocal responsibilities of each to the other; and

be prepared annually & be amended to reflect necessary & unscheduled changes in outputs

The reformers determined strategic positioning, core businesses & performance

basis eliminate or ‘right size’ non-core activities analysis of new Agencies’ needs for delegated

authorities, resulting in: detailed proposals for new jobs & remuneration simplified pay classification systems basis for performance-based remuneration (e.g., 25%

contract gratuities). CEOs & second tier managers on fixed term performance-

based employment contracts performance management & appraisal systems established EA staff conditions of appointment simplified

Agreement with Ministry of Finance:

for EAs to have sustained supply to perform & to compensate staff commensurately &

to enable EAs to ‘vire’ funds among recurrent expenditure to reallocate when necessary

Production of generic HR Manual to guide new EAs in performance regime

Involvement of portfolio ministers & PSs directly in Agency modernisation, as well as the Unions

From 1999 Registrar-General’s

Department (RGD) Office of Registrar of

Companies (ORC) Management Institute for

National Development (MIND)

Administrator-General’s Department (AGD)

From 2001 National Land Agency

(NLA) National Environment &

Planning Agency (NEPA) National Works Agency

(NWA) Jamaica Information

Service (JIS) Child Development

Agency (CDA)From 2005 Passport, Immigration & Citizenry Agency (PICA) Forestry Department (T) Fisheries Division (T) Island Traffic Authority (SM)

Policy Ministries Established Ministry of Transport and Works Ministry of National Security

Policy Ministry in Transition Ministry of Education

  Ministries with delegated HR authority

Cabinet Office Office of the Prime Minister Ministry of Finance and the Public Service Ministry of Education Ministry of Transport Works Ministry of Foreign Affairs and Foreign Trade

Other entities with delegated HR Authority Customs Department Revenue Entities Local Government Department

Since 2000, six Ministries/PS’s have been given delegated authority for appointments to all levels below that of PS

Written Instruments of Delegation signed between the G-G (OSC) and the PS

The PS can take all HR actions – recruitment, appointment, promotion, transfer, training, discipline, separation .

There are guidelines to be followed for disciplinary procedures. In order to have this delegation certain requirements must be met:

An HR committee must be in place – this committee provides advice and conducts certain activities

The committee is a staff committee with a mix of HR and non-HR personnel. It must have 2 union reps and usually has some key directors

The PS appoints according to a model, and chairs the committee Prior training for PS and Directors in managing the delegation

The PSC has general oversight and conducts audits of delegated authority and produces an annual report on implementation.

The PSC hears appeals and also gives technical advice, guidance and development

The Constitution (Section 127.4) provides for the revocation of the delegation in cases of abuse.

All Executive Agencies improved service performance

Significant outcomes for community in terms of service delivery and customer satisfaction

More efficient processes Better focus on each

Agency’s mission; thus Better value for money

THANK YOU....

DISCUSSION