1. Lecture 1 - Frontiers of Pulic Sector Managemet
Transcript of 1. Lecture 1 - Frontiers of Pulic Sector Managemet
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How to Improve Government Performance(Challenges, Possible Solutions and Lessons of International Experience)
Dr. Prajapati Trivedi
Secretary, Performance Management
Cabinet Secretariat
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Dr. Prajapati Trivedi
Secretary, Performance Management
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Select Key Points
• The one picture I want to etch in your minds
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Select Key Points
• Accountability for results trickles down
• Countries in the world can be classified according to
their ability to implement policies and programs
• Implementation depends on effective follow-up
(M&E) (another name for accountability andResults-Based Management)
• Effectiveness of follow-up and monitoring dependson quality and not quantity of M&E (Effective
evaluation requires explicit rankings).
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Select Key Points
• Degree of Accountability for results is synonymouswith Evaluation.
• Evaluation techniques for management control ingovernment are different from evaluation techniquesfor strategic control.
• Evaluation is one of the three systems required forperformance improvement – Information andincentive systems being other two.
• Performance Evaluation is different fromPerformance Explanation and PerformanceMonitoring.
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Presentation Outline
• Perceptions about Government Performance
• Explanations about Government Performance
• Meaning of Government Performance
• How to Improve Government Performance
• International Best Practice and Options
• Lessons of Experience – Summing Up
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Perceptions aboutPerformance of Government Agencies
Government Agencies have not delivered
what was expected from them
Government Agencies have not delivered
what was expected from them
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Presentation Outline
Perceptions about Government Performance
• Explanations about Government Performance
• Meaning of Government Performance
• How to Improve Government Performance
• International Best Practice and Options
• Lessons of Experience – Summing Up
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Problems of Government Agencies - I
ADMINISTRATIVE MINISTRY EQUITY EFFICIENCY
MULTIPLEPRINCIPALS MULTIPLEGOALS
FUZZY GOALS &
OBJECTIVES
PLANNING MINISTRY
FINANCE MINISTRY
PARLIAMENT
POLITICAL NON-POLITICAL
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Problem of Government Agencies -II
“NOT ME”Syndrome
People
Public Enterprise
Government
Parliament
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Performance Deficit Vs. Financial Deficit
Performance Deficit
Low Credibility
Lower Funding
Financial Deficit
Poor Performance
Symptom:
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Presentation Outline
Perceptions about Government Performance
Explanations about Government
Performance
• How to Improve Government Performance
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80 %
20 %
Determinants of Performance
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Leader
RE
ST
People
80 % 20 %
Determinants of Performance
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System
80%
People
20%
SystemPeople
Determinants of Performance
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System
80%
Leader
16%
Rest4%
System
Leader
Rest
People
80 % 20 %
Determinants of Performance
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Reduce Quantity of
Government
Reduce Quantity of
Government Increase Quality of Government
Increase Quality of Government
What can be done to solve the problem?
Government Agencies have not delivered
what was expected from them
Government Agencies have not delivered
what was expected from them
Trickle-down
Approach
Direct
Approach
Privatization Traditional
Civil Service Reforms
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Increasing Quality of Government
Trickle Down
Approach
Direct
Approach
Performance Agreement Client Charter
E-Government
ISO 9000
E-Procurement
Quality Mark
Enabling
Environment
Peer Reviews
Knowledge Management
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Concept of Performance Agreement
1. In the words of Second Administrative Reform
Commission:
– “ Performance agreement is the most common
accountability mechanism in most countries that have
reformed their public administration systems.”
– “ At the core of such agreements are the objectives to be
achieved, the resources provided to achieve them, theaccountability and control measures, and the autonomy
and flexibilities that the civil servants will be given.”
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2. Performance Agreements in India are proposedto:– be signed between a Minister representing people’s
mandate and Secretary of the correspondingdepartment responsible for implementing the mandate
– contain agreed objectives, policies, programmes andprojects / schemes
– include success indicators and targets– outline resources required and operational autonomy
provided to departments
Concept of Performance Agreement
S l
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Sample
Performance
AgreementFrom
USAPerformance
Agreement
between
The President of USAWilliam Jefferson Clinton
and
The Secretary of Energy
Hazel O’Leary
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Sample
Performance
Agreement
From
New Zealand
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SamplePerformance
Agreement
From
Malaysia
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Sample
Performance
Agreement
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Sample
Performance
Agreement
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Problems of Government Agencies I
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ADMINISTRATIVE MINISTRY EQUITY EFFICIENCY
MULTIPLE
PRINCIPALS
MULTIPLE
GOALS
FUZZY GOALS &OBJECTIVES
A SOLUTION
Performance Agreement
PLANNING MINISTRY
FINANCE MINISTRY
PARLIAMENT
POLITICAL NON-POLITICAL
Problems of Government Agencies - I
P bl f G A i II
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“NOT ME”Syndrome
People
Public Enterprise
Government
Parliament
A SOLUTION
Performance Agreement
Problems of Government Agencies - II
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Why the Focus on Performance ?
• First general point– The power of performance management is now
widely recognized.
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The Power of Performance Measurement
• What Gets Measured Gets Done
• If you Don’t Measure Results,You Can’t Tell
Success from Failure• If You Can’t See Success, You Can’t Reward It
• If You Can’t Reward Success, You are Probably
Rewarding Failure• If You Can’t See Success, You Can’t Learn From
It
• If You Can’t Recognize Failure, You Can’tCorrect It
• If You Can Demonstrate Results, You Can WinPublic Support
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Presentation Outline
Perceptions about Government Performance
Explanations about Government
Performance
How to Improve Government Performance
• Meaning of Government Performance
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What is meant by the term:
PERFORMANCE OF GOVERNMENT AGENCIES?
• Ex-post versus Ex-ante Performance
• Managerial versus Agency Performance
• Partial versus Comprehensive Performance
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Meaning of Performance
Ex-post versus Ex-ante
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Ex-post versus Ex-ante
Performance Evaluation
• based on comparison of achievements against agreed
targets
• typically involves a formal agreement
• most common in professionally run organizations
Ex-ante Performance Evaluation is:
Ex-post versus Ex-ante
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Ex post versus Ex ante
Performance Evaluation
• based on selection of criteria by the evaluator at
the end of the year
• typically undertaken by researchers
• useful for future projects
• more comprehensive
Ex-post Performance Evaluation is:
Ex-post versus Ex-ante
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Ex post versus Ex ante
Performance Evaluation
• based on comparison
of achievements
against agreed targets
• typically involves a
formal agreement
• most common inprofessionally run
organizations
• based on selection of criteria by theevaluator at the end of
the year• typically undertaken
by researchers
• useful for futureprojects
• more comprehensive
Ex-ante Performance Evaluation is: Ex-post Performance Evaluation is:
• based on comparison
of achievements
against agreed targets
• typically involves a
formal agreement
• most common inprofessionally run
organizations
Ex-ante Performance Evaluation is:
• based on selection of
criteria by the
evaluator at the end of
the year
• typically undertaken
by researchers
• useful for future
projects
• more comprehensive
Ex-post Performance Evaluation is:
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What is meant by the term:
PERFORMANCE OF GOVERNMENT AGENCIES?
• Ex-post versus Ex-ante Performance
• Managerial versus Agency Performance
• Partial versus Comprehensive Performance
Managerial versus Agency
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Managerial versus Agency
Performance Evaluation
• based on observed performance of the agency
Agency Performance Evaluation is:
Managerial versus Agency
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Managerial versus Agency
Performance Evaluation
• calculated by adjusting agency performance for
factors beyond the control of the management
(government officials):
Managerial Performance Evaluation is:
Managerial versus Agency
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Managerial versus Agency
Performance Evaluation
• calculated by adjusting agency performance for
factors beyond the control of the management
(government officials):
Managerial Performance Evaluation is:
AgencyPerformance =
Managerial
Performance -+ExogenousFactors
Managerial versus Agency
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g g y
Performance Evaluation
Change inAgency
Performance=
Change inManagerial
Performance -+Exogenous
Factors
- 100,000Hospital
Beds =
+75,000Hospital
Beds -+-175,000Hospital
Beds
Impact of Budgetary Cuts
An Heuristic Illustration
Wh t i t b th t
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What is meant by the term:
PERFORMANCE OF GOVERNMENT AGENCIES?
• Ex-post versus Ex-ante Performance
• Managerial versus Agency Performance
• Partial versus Comprehensive Performance
Partial versus Comprehensive
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Partial versus Comprehensive
Performance Evaluation
• Partial Performance Evaluation is:
– based on selected aspects (or activities) of the agency
• Comprehensive Performance Evaluation is:
– based on all activities of agency
A Taxonomy of
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A Taxonomy of
Performance Evaluation Approaches
Managerial
Performance AgencyPerformance
Ex
-ante
Pe
rformance
Ex-po
st
Performance
Cell # 1Cell # 2
Cell # 3 Cell # 4
Results-Based
ManagementFramework
Impact Studies
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Best Practice Methodology
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A SOLUTION!
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Performance Information
System
Criteria
( “ How
” to
Evaluate)
Performance Evaluation
System
Institutional Arrangements ( “ Who ” Should
Evaluate)
PERFORMANCE IMPROVEMENT SYSTEM
Performance Incentive System
A SOLUTION!
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Performance Information
System
Criteria
( “ How
” to
Evaluate)
Results-Based Management Framework
Institutional Arrangements ( “ Who ” Should
Evaluate)
PERFORMANCE IMPROVEMENT SYSTEM
Performance Incentive System
Results Based Management Framework
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BEGINNING OF YEAR
Step 1Criteria Selection
“ FAIR ” to Officials
END OF YEAR
Step 2 Criteria Weight
Selection
Step 3 Criteria Value
Selection
“ FAIR ” to
country Negotiated “ FREELY ”
Step 4 Performance Evaluation (Composite
Score)
Results-Based Management Framework
Example of Results Framework
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Target / Criteria Values
PoorFairGood
Very
GoodExcellent
250
12
5
60%
300
14
10
70%
400
16
20
80%
450
18
25
90%
.20
.30
.50
Weight
500Number of hospitals with ISO
9000 certification by December
31, 2009
3
20% Increase in number of people
with access to a primary health
center within 20 KMs
2
30% Increase in number of primary health care centers
1
100%
Criteria /
Success Indicators
Step 1
Results-Based Management Framework
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BEGINNING OF YEAR
Step 1Criteria Selection
“ FAIR ” to Officials
END OF YEAR
Step 2 Criteria Weight
Selection
Step 3 Criteria Value
Selection
“ FAIR ” to
country Negotiated “ FREELY ”
Step 4 Performance Evaluation (Composite
Score)
Results-Based Management Framework
Example of Results Framework
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Target / Criteria Values
PoorFairGood
Very
GoodExcellent
250
12
5
60%
300
14
10
70%
400
16
20
80%
450
18
25
90%
.20
.30
.50
Weight
500Number of hospitals with ISO
9000 certification by December
31, 2009
3
20% Increase in number of people
with access to a primary health
center within 20 KMs
2
30% Increase in number of primary health care centers
1
100%
Criteria /
Success Indicators
Step 1 Step 2
Results-Based Management Framework
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BEGINNING OF YEAR
Step 1Criteria Selection
“ FAIR ” to Officials
END OF YEAR
Step 2 Criteria Weight
Selection
Step 3 Criteria Value
Selection
“ FAIR ” to
country Negotiated “ FREELY ”
Step 4 Performance Evaluation (Composite
Score)
Results Based Management Framework
Example of Results Framework
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Target / Criteria Values
PoorFairGood
Very
GoodExcellent
250
12
5
60%
300
14
10
70%
400
16
20
80%
450
18
25
90%
.20
.30
.50
Weight
500Number of hospitals with ISO
9000 certification by December
31, 2009
3
20% Increase in number of people
with access to a primary health
center within 20 KMs
2
30% Increase in number of primary health care centers1
100%
Criteria /
Success Indicators
Step 1 Step 2 Step 3
Results-Based Management Framework
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BEGINNING OF YEAR
Step 1Criteria Selection
“ FAIR ” to Officials
END OF YEAR
Step 2 Criteria Weight
Selection
Step 3 Criteria Value
Selection
“ FAIR ” to
country Negotiated “ FREELY ”
Step 4 Performance Evaluation (Composite
Score)
g
Example of Results Framework
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84.5%Composite Score
20%
27%
37.5%
Weighted
Raw Score
100%
90%
75%
Raw
Score
600
18
15
Achievement
Target / Criteria Values
PoorFairGoodVery
Good
Excellent
250
12
5
60%
300
14
10
70%
400
16
20
80%
450
18
25
90%
.20
.30
.50
Weight
500Number of hospitals with
ISO 9000 certification by
December 31, 2009
3
20
% Increase in number of
people with access to a
primary health center
within 20 KMs
2
30% Increase in number of primary health care centers
1
100%
Criteria /
Success Indicators
Step 1 Step 2 Step 3 Step 4
Performance Obligations for National Authority 2009-2010
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100%Total Weight =
6070809010020%Aggregate score for the 3-
Point Performance Agenda20%Effective
Implementation of
Performance Agenda
for 2009-2010
Objective 4
1714118525%Number of errors committed
by NACWC Escort Officers25%Effective
Management of
OPCW Inspections
Objective 3
0%5%10%15%20 %25%Percentage reduction in the
discrepancies between
declarations submitted and
inspection results
25%Effective
Management of the
Declarations
Objective 2
Three
incidents
Two
incidents
One major
incident
One
minor
incident
No incidents15 %b. Safety of the program
By June
30, 2009
By June
15, 2009
By May
31, 2009
By May
15, 2009
By April 28,
2009
15 %a. On-time Completion
30%
Effective
Management of theChemical Weapons
Destruction Program
Objective 1
60%70%80%90%100%Relative
WeightDescription
PoorFairGoodVery
GoodExcellent
TargetSuccess Indicator
WeightObjective
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For comments and further dialogue please contact:
Dr. Prajapati Trivedi
Secretary, Performance Management
Cabinet Secretariat