Improving Public Service Improving Public Service PerformancePerformance

““The Cayman Islands The Cayman Islands

ExperienceExperience””

Gloria McField-NixonChief Officer, Portfolio of the Civil Service

Presentation OverviewPresentation Overview

A look at CI Reform InitiativesLegal Framework for Financial ReformLegal Framework for HR ReformCritical Success FactorsLessons LearnedWhat’s Next?

Snapshot of CI Public Snapshot of CI Public ServiceService

As of 30 June 2009, there were 3,756 civil servants. The Civil Service represents 6.6% of the CI Population and 9.6% of the labour force.In 2008/9, the civil service contracted by 4 percent or 148 persons by introduction of a soft recruitment freeze achieved over last 8 months of the financial year.Some 71 percent of the civil service are Caymanians in contrast to national average which is 46 percent.There are no unions in the civil service. Collective bargaining achieved by a Civil Service Association.

How are we doing?How are we doing?Countries large and small struggle with Public Sector Reforms amidst this global economic crisis

The OECD Report “Government at a Glance 2009” states that the capabilities of governments are currently on trial as never before.”’

Gov’t Expenditures as a % of GDPOECD countries ranges from 28% to 54%. Cayman Islands it is 29 %

Civil Servants as a percentage of Workforce: OECD ranges from 5% to 29%. In the Cayman Islands it is 9.6%

Gov’t Revenue as % of GDP: Ranges in OECD from 59% to 20%. In Cayman 29%.

Adopted fiscal rules re debt levels and balanced budgetFive OECD countries have adopted fiscal rules re debt levels and balanced budget. CI has strict fiscal rules.

Audited government accounts within 6 months after FYEFewer than half of OECD countries meet target. CI audited Annual Reports are delayed by several years.

Reform Initiatives are Interlinked Reform Initiatives are Interlinked and Complementaryand Complementary

Critical Elements of Financial Critical Elements of Financial ReformReform

Strategic FocusStrategic Policy Statement

Clear accountability based on:– Output (purchase) performance– Ownership performance– High quality financial info based on accrual

accountingTransparency:– Quarterly performance reporting– Budget updates

Decentralisation of authorityManagement systems to deliver performance

Key Elements of HR Key Elements of HR ReformReform

Legislative Framework Legislative Framework for HR Reformfor HR Reform

Oversight of the Civil Oversight of the Civil ServiceServiceDecentralised Management of StaffPersonnel authority vested in the Governor but he only exercises this authority in respect to his direct reports– Judiciary– Official Members (Chief Secretary, Attorney General & Financial

Secretary)– Auditor General, Complaints Commissioner & Information Commissioner– Police Commissioner, Deputy Commissioner & Asst. Commissioner

Chief Secretary/Head of the Civil Service exercises this authority in respect to his direct reports:– Chief Officers in Ministries and Portfolios

Chief Officers exercise this authority in respect to their direct reports:– Heads of Department and Ministry staff

Head of the Civil Service responsible for:– Overseeing matters relating to the civil service,

including ensuring that open and fair employment processes operate

– monitoring the HR practices of civil service entities – employment & performance management arrangements

for most chief officers– recommending remuneration levels for certain posts– acting when political pressure occurs

Defines responsibilities of the Portfolio of the Civil Service– To support HoCS and Governor in civil service matters– Strategic HR, HR Audit, Management Support Unit and

Civil Service College

Key Roles under PSMLKey Roles under PSML

Modern Employment Modern Employment PracticesPractices

Chief Officer/appointing officer may, within their civil service entity:– Appoint staff– Establish duties of staff– Discipline staff– Dismiss staff– Retire staff

When making these decisions, Chief Officers must– Comply with the Law and Regulations– Use prescribed procedures– Only act within the authority of their delegation– Run an open and fair process

The Performance The Performance AssessmentAssessment

An assessment of the performance achieved by each employee must be carried out at the end of each financial year by their manager

Performance assessments must be completed within 30 days after the annual report of the Ministry

The assessment must be based on factual comparisons of actual performance as reported in the quarterly and annual reports of the Ministry

Must involve the employee, and have their sign off

Outputs Linked to Performance

PCS 3 Support on Chief Officer Employment Matters $25,230

Description

Provision of technical and administrative support to the Head of the Civil Service and, where relevant, the Governor, in relation to employment arrangements for chief officers including:Managing chief officers’ appointment processes Assisting with negotiating remuneration levels with chief officersManaging the processes surrounding the disciplining, dismissing or early retirement of chief officersDeveloping succession plans for chief officers positionsEnsuring annual performance agreements are prepared for each chief officer and providing advice on the fairness of the agreement for the Head of the Civil Service’s certificationManaging the process for annual performance assessment of chief officers including undertaking an initial assessment for consideration by the Head of the Civil ServiceMeasures 1st Quarter Actual 1st Quarter Budget Variance

QuantityNumber of hours of technical and administrative supportNumber of performance agreements prepared and advised onNumber of performance assessments prepared and advised on

271010

19-381010

000

TimelinessSupport provided within timelines established by the Head of the Civil Service or Governor for the issue concernedPreparation of performance agreements provided in November 09 and June 2010Advice on performance assessments ongoing throughout the period

95-100%95-100%95-100%

95-100%95-100%95-100%

000

Location100% 100% 0

Cost $3,386 $6,308 ($2,922)Related Broad Outcome:

8. Preparing our labor market for future opportunities

Employment Practices - Employment Practices - HighlightsHighlights

Caymanianisation – in processes where employees are assessed as being broadly equal, Caymanians are given preferenceAll Employees have an employment agreementStaff can be employed without going through open competition only with the approval of the Head of the Civil Service, and where;– the appointment is for three months or less, or– the candidate is a returning from a Government

scholarship, or– the appointment is exceptionally urgent (not just badly

planned)ALL minimum terms and conditions set out in Personnel Regs

New SafeguardsNew SafeguardsStaff may appeal to Chief Officer about a decision of an appointing officer relating to: – Appointment, discipline, dismissal, retirement,

redundancy– Remuneration, performance pay– Performance assessment

Chief Officer has 30 days to rule on the appeal– Must operate in a fair and unbiased manner

Staff may appeal to Civil Service Appeals Commission about any HR decision of Chief Officer:– Including an appeal decision

Decision of CSAC final – powers of a grand court

New SafeguardsNew Safeguards

HR Auditing function– Reports to the Head of the Civil Service– Test for compliance with the Law and Regulations– Can undertake ‘special’ investigations– Can recommend the limit/withdrawal of delegations

Grievance Process– Not dealing with HR decisions (see appeals process)– Attempt to resolve situation informally– Formal resolution ultimately rests with the Chief Officer

Impact of PSMLImpact of PSMLThen Now

Legal Framework General Orders (over 30 years old with only minor amendments)

PSML, Personnel Regs & Policy and Procedures Manuals

Remoteness of HR Authority

Far – A centralised PSC with what in practice served as lifetime appointments

Appointing Officers (Chief Secretary, Chief Officers, Senior Staff with HR delegations)

Performance Management System

No systematic reviews. Increments treated as a right.

Annual performance agreements and evaluations required by law. Component of Performance related pay introduced (but deferred)

Role of Personnel Agency

Then Personnel Department for Operational Matters

Now Portfolio of the Civil Service Responsible for

Management Support Unit (3 staff) Strategic and Corporate HR (6 staff) Civil Service College (3 staff) HR Audit (3 staff)

Role of Public Service Commission

Decision Making Former PSC abolished. New CSAC is an Appellant body

Involvement of Public None with exception of those longstanding appointees to PSC

Public has input via FOI & Complaints Commissioners Office

Civil servants can challenge a decision with ultimate appeal to CSAC

Role of Strategy Limited Linked to Outputs and incorporated into annual performance agreements

Where are we nowWhere are we now

Efficiency Reviews to commence in top spending agencies utilizing local experts within public and private sector and incorporating an array of disciplines including HR, Finance and Management.Revisit assess extent of decentralizationRe-visit Public Education - Low Awareness as to WHAT reforms mean and WHY they are relevantOld Behaviors Persist – eg. Temptation to revert to input budgetingThe reforms have a wide cast of decision makers but the system is heavily dependant upon distinction in roles

Critical Success Critical Success FactorsFactorsTransparency – Enabling active public participation and oversightImproved information tools and improved use in decision makingTranslate the benefit of reforms into results relevant to your publicCreating a culture conducive to changeIdentifying the most appropriate solution AND setting realistic timelinesEnsure reforms are both visible and RELEVANT to the public

Remember….Public Sector Remember….Public Sector Reform is a journey and not a Reform is a journey and not a

destination.destination.

Thank youThank you