In most countries: Key institutions are in ferment Public institutions must meet new...
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Transcript of In most countries: Key institutions are in ferment Public institutions must meet new...
In most countries:• Key institutions are in ferment
• Public institutions must meet new expectations/needs or lose public trust
• Public sector reform is getting higher on the political agenda
• But many important changes happen invisibly and unintentionally
• And despite reforms, trust declines
Which role of the citizen needs most attention?
• As “owner of government? (voter, taxpayer, member of society with rights enshrined in the constitution)
• As “subject”? (protected by – and from – coercive power of the state)
• As «customer »? – recipient of public services
Diagnosis: Most needed – Coherence or Adaptation?
• Government – like all institutions – face two fundamental (and conflicting) challenges
Maintaining collectivity and stability Adapting to changing circumstances
Does a government need:
• Stronger Collectivity? (eg. Policy co-ordination, budget stability, legal compliance, impartiality, protections against vested interests, management control, uniform civil service system, ...)
• or More Adaptivity? (eg. Performance, competition, differentiated structures, tailored services/incentives, risk-taking, ...)
Levers of Change
• Civil service system• Budget & financial management• Accountability and control systems• Openness and transparency• Role of central control bodies• Machinery of government (incl. distributed
governance arrangements)• Use of non-government service providers
And Modernisation can be a Charade
• Gap between rules and behaviour
• The difficulty of culture change
• The difficulty of measurement
• Attractions of rhetoric and initiatives
• The avoidance of hard choices
Successful Reform Strategies
• Are calibrated to specific risks and dynamics of the national system
• Focus on desired cultural change• Mobilise all levers on behaviour – formal
and informal• Have persistent and committed
leadership at all levels
Challenges for the Future
0 2 4 6 8 10 12 14 16 18
Improvement of budget system
Re-organisation to improve efficiency
Give effectiveness to formal innovations
Managing transition periods
Managing older workers
Recruitment and retention of highly-qualified cs
Culture, learning and development
Make public service more actractive
PM development and its linkage with pay and other HRM systems
Career development
Mobility
Leadership and Managers
Decentralisation and devolution
Equality Opportunity issues
Harmonization between public and private systrems
Improve work conditions and quality of life of cs
OECD TRENDS
• Affordability remains a key issue for any government
• Governments under pressure to be adaptive
• Focus on strategy, collaborative action, risk management, societal impact
• Attention to whole of government, governance and public trust
Diagnosis for Iceland?
• Small with vulnerable economy• Mobile talent
• Relatively dependent on maintaining good international reputation
• Citizen as Owner is key concern• Key :ADAPTIVITY AND OPTIONS
But Iceland
• Has strong social cohesion
• Capacity for strong collective action
• A memory of the importance of good economic and fiscal policy
• Big change needs active leadership at all levels-not technical matter
Index of Degree to which C.S. System is Closed
Australia
FranceCzech republic
Ireland
Korea
Sweden
Denmark
Finland
Spain
J apan
Luxembourg
AustriaGreece
Uk
P oland
Canada
Iceland
Usa
Switzerland
Norway
Hungary
BelgiumMexico
New zealand
Slovak republic
P ortugalItaly
AV
Q1
Q3
Germany
Chile
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Index of Degree to which C.S. System is Closed
10%16%
21%22%
26%26%27%27%
28%29%29%
35%36%
37%37%
37%37%
38%42%
44%50%
52%
56%57%
62%64%
69%74%
78%
0% 10% 20% 30% 40% 50% 60% 70% 80%
KoreaJapanSpain
FranceCzech republic
BelgiumMex ico
ItalyPortugal
Lux embourgPolandAustriaIreland
DenmarkGermany
Norw ayGreece
ChileFinland
UsaAustraliaHungary
New zealandSlov ak
CanadaSw itzerland
UkIceland
Sw eden
Context for Performance MeasurementDifferent Kinds of Problem
Management
Control
Informed Policy
Transparency/Accountability/External Confidence
Main Influences on Organisational Behaviour
Markets Low complexity
Contracts
Rules
Clans High Complexity
Public Service Models
Rules
Compliance
Professional Behaviourdominated by informal
influences
Int. and Ext.Resource Controls
Rule Bound Bureaucracy The Clan
Ramanathan’s Model
Costs
Inputs
Process
Outputs
Outcome Indicators
B/C
Managing Government Performance4 levers
Leadership & Vision
Strategic Adaptation
BoundaryRiding
DiagnosticInformation
Strengths and weaknesses of control regimes
Strengths WeaknessesGood for situations
with…
Input
Easy and affordable Strengthens
compliance
Does not supportefficiency
Can be inflexible Short term
…low confidenceand variablecompetence
Out-put
Facilitates efficiency Facilitates control of
aggregateexpenditure
Accountability
Can distort focus Measurement
problems Costs Information overload
…confidence, soundaccounting andprofessionalism
Out-come
Facilitates re-allocation
Support policyformulation and co-ordination
Long term
Measurementproblems
Accountabilityproblems
Costs Information overload
… the above anddedicated politicians
Approaches to taking Account of Outcomes
Outcome oriented culture Professionalism Internal Evaluation Systems Comprehensive Internal Auditing External VFM Performance-Oriented Budgeting and
Management Systems Legislated Disclosure
More information:
• www.oecd.org/puma• www.oecd.org/puma/budget/• www.oecd.org/puma/hrm/