Public Service Performance Irelands Experience Ronnie Downes Department

Public Service Performance Ireland’s Experience Ronnie Downes Department of Finance 27 August 2008

Overview n Background to Strategic Management Developments n Performance Initiatives n OECD Review of Ireland’s Public Service 2008

Background Michael Collins n Exchequer & Audit Departments Act 1866 n § n Votes, Subheads It works. . .

Modernisation in the Public Service Milestones n Strategic Management Initiative 1994 n “Delivering Better Government” 1996 n Public Service Management Act 1997 n Evaluation of SMI/DBG 2002 n New Initiatives 2006

Modernisation in the Public Service Some Reforms Quality Customer Service Initiative n Openness and Transparency n § FOI Act 1997 Better Regulation n Human Resource Management - PMDS n Financial Management Programmes - MIF n Information Technology – e. Government n

Modernisation in the Public Service Some Reforms Expenditure Review VFM & Policy Reviews n VFM Framework – appraisal, responsibility n Budgetary reforms n Multi-annual capital budgeting 2004 § Unified budget 2007 § Annual Output Statements 2007 § Efficiency Reviews 2008 §

Performance Initiatives n n n n SMI / DBG – “results-focused civil service” Mission Statements – strategic impact indicators Management Information Framework – Nonfinancial Performance Indicators Business planning, PMDS Annual Output Statements – integration Value-for-Money framework, evaluation National Development Plan – impact indicators Partnership agreements – Performance verification

Consolidation - Progress FINANCIAL INPUTS MISSION STATEMENT PROGRAMME AREAS HIGH- LEVEL OBJECTIVES BUSINESS PLANNING PMDS ANNUAL REPORT OUTPUTS ANNUAL OUTPUT STATEMENT

Achievements? Stronger strategic focus – more effective n Operational level – integration challenges n Traditional input-based infrastructure § Cumulative “strategic” initiatives § § § n Strategy Statements Annual Strategy Reports Financial Budget processes Annual Output Statements Intermediate stage – Further consolidation needed

Taoiseach’s Initiatives n New Modernisation Initiatives announced by Taoiseach in 2006: § System-wide review by OECD § Organisational health checks - ORP

OECD Review OECD were asked: to benchmark the Public Service in Ireland against other comparable countries, and § to make recommendations as to future directions for Public Service reform to the delivery of world-class services to the citizen within existing resources and will contribute to sustainable national competitive advantage § A “first” n Report published 28 th April 2008 n

OECD Research n n Fact-finding The OECD met with over 100 key stakeholders at political and administrative levels as well as representatives of the Social Partnership pillars and academics. Public consultation a media campaign § an invitation to the public, Social Partners and other interested parties to make submissions, § dialogue between the OECD and a Consultative Panel. § Over 930 submissions were received from private individuals and organisations.

A Twin Track Approach n A review of the key institutional dimensions in the public sector as a whole looking in particular at the key areas of budgeting, ICT and e-government, and public employment and management n Case studies examining key questions in illustrative sectoral areas

Main Themes § Ensuring Capacity Mobilising skills across the Public Service and allocating them where most needed § Motivating Performance Motivating a performance culture that is self reinforcing and focussed on value for money § A Citizen-centred Approach Presenting a unified front for integrated service delivery and achieving back office efficiencies through shared services § Strengthening Governance Reinforcing performance structures and accountability arrangements in support of all of the above

OECD Review – Main Conclusions n Ireland has a relatively low level of total Public Service Employment in international terms; n Ireland is on track in terms of public service reform – “sound trajectory of modernisation” n The Irish Public Service has given Ireland a competitive advantage by providing high quality services, but with slowing growth & global competitiveness it needs to work smarter.

OECD Review – Main Recommendations n a more integrated Public Service n a networked approach to working across current structures to allow greater connectivity between different sectors; n for greater mobility and flexibility of staff across the public service; n a Senior Public Service to provide a single Public Service leadership cadre.

OECD Review - Main Recommendations n move towards a performance focus § § n More information on outputs and outcomes Alignment of PI with overarching outcomes / goals greater prioritisation within budgetary frameworks § § Using PI for resource allocation decisions Longer-term, more strategic budgetary frameworks n for improved governance and performance dialogue between the central civil service and the wider public service, including clear guidelines for establishing new agencies & for operating existing ones; n to use e. Government more widely to achieve a more citizen centred approach; n for a strong leadership role for the centre of Government.

Motivating Performance n Reinforce a performance culture by linking performance information and decision-making processes § n Establish a performance dialogue between departments and agencies § n n Building on Annual Output Statement approach Rather than traditional financial monitoring Create a more coherent performance approach Improve quality of performance indicators and information Improving performance through competition Move from micro to macro spending controls and increase budget flexibility and transparency

Strengthening Governance n n Prioritise the Reform Programme throughout the Public Service Improve Public Service Responsiveness Review the government agencification framework Refocus on whole-of-government objectives

Summary of OECD Findings n n Initiatives to date have been effective No new initiatives needed Integration of existing initiatives … in support of Performance agenda Performance dialogue § NL and UK put forward as examples of good practice § n Basic message – deepening connections, integration at all levels – has lessons for other countries

Next Steps n Appointment of Taskforce Chaired by Secretary General to the Government § Secretaries General of four key sectoral Departments § Four external members § n Terms of Reference § n to prepare a comprehensive framework for renewal of the public service, which takes into account the analysis/conclusions of OECD Report as well as lessons to be drawn from the SMI, ORP and Efficiency Review Process To report by end Summer

4 th International Public Management Summer Institute 25 -28 August 2008, Tukums, Latvia