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Dr. Prajapati Trivedi, Secretory, Performance Management Division, Cabinet Secretariat being welcomed by Mr . Subbu Subramaiam 

N, Chairman, VCAI ft. Managing Portner, MCap Fund Advisors on the occossion of "ASSOCHAM 2nd CFOs Roundtable Conference: 

Challenges for CFOs ft. the Way Forward",

P e r f o r m a n c e~ J f J J < 2 d J

•ASSOCHAM Bulletin - November 2010

f J C 2 J lI J Y 2 3Dr. Prajapati Trivedi, Secretary, Performance Management Division, Cabinet

Secretar iat stated that the system change in the central government would

enable measurable response to publ ic gr ievance by government of ficia ls.Inaugurating ASSOCHAM organized 2nd CFOs Roundtable Conference 2010,

Dr. Trivedi also indicated that all 62 government ministries and departments on

board have signed the tool called Results Framework Document (RFD)which will set

targets for each ministry and will finally be the basisfor yearly evaluation. "Results

will be our bottom-line just like profits are the bottom-line of the private sector" he

pointed out.

The formula of assessingthe government employeesas proposed by performance

management division under the cabinet secretariat, has ruled out "not me syndrome

and passing the bu ck". The Secretaries in turn will have to set performance levels

for the officers below them and evaluation would be from bottom to top. "Once we

fix the performance deficit, other things will follow" Dr.Trivedi said elaborating on

the causes of performance deficit. He told the audience that had leading private

sector CFOsthat "private sector will look up to us".

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The Cabinet Secretariat also said that

during the f irst round of assessment,

initially for three months from January to

March 2010, there is a strong possibility

that a large number o f government

employees would receive an extra pay

once the new formula is adopted.

The various m inistries and

departments are preparing their Result

Framework Documents (RFD) which is

to be submitted to this division and the

performance of the ministries wi ll be

H e also m entioned that the

government is extending the performance

monitoring and evaluation system to 62

departments f rom the current f iscal.

According to new system, a department

sets a target, fixes the weightages of each

targ et, and if it

succeedsmeeting all

i ts targets, gets a

score of 100.

monitored based on these documents

only. First, the ministries are themselves

setting their targets and secondly they

have huge manpower ranging f rom

senior bureaucrats to employees under

central secretariat scheme (CSS).

Speaking on the occasion, Mr. Y M

Deos thalee,CFO ,Larse n8:Tu rbo ltd. said to

improve the competition by reducing the

cost, competitive analysis in a qualitative

manner and by communication.

Mr. 5 C Agarwal, CMD, SMC also said

that compliance with all the stakeholders

in the Indian capital markets have to

meet the highest standards of corporate

governance, not only in letter of law but

in the spirit ofthe law as well. Hefurther

said that the multiple modes of fund

raising present in the Market today

present another set of challenges to the

C F Os o f t od ay 's cor po ra tio ns . T he

importance of having continuous updates

about the latest trends in the various

instruments of primary market such as

IPO's,FPOs,QIPs,ADRs,GDRs,FCCBsetc

can no t b e i gn or ed. M an y of the

companies that choose to ignore these

He also

h ig hlig ht ed t ha t

many countries such

a s C a na da , N ew

Zealand, Australia,

Netherlands,

Denmark,UK,USand

Finland have moved

away from the

traditional

government

administrative model

to a management

model under which

o ffic ers a ct lik e

corporate managers

as they get greater

o pe ra tio na l f re ed om, a nd a re h eld

accountable for results. In fact, New

Zealand is considered to be the leader of

th e pac k w here perform anc e of

government agencies are weighed in by

sett ing targets and adopting regular

e va lu at io ns . " In N ew Z e ala nd t he

Governorofthe central bank has hissalary

linked to inflation level being low and asa

result for the last 18 years that country

Dr . Projapati Trivedi (3rd from left), Secretary . Performance Management Division , Cabinet Secretariat 

releas ing ASOCHAM Study - The Game Changers far CFOs ' at  " ASSOCHAM 2nd CFOsRaundtable Conferen c e : 

Challenges for CFOs fr. the Way Forward" , Also seen in the picture are :  (from left) M r, Sandeep Dhupia ,

Executive Director, KPM G;  M r, Subbu Subromaiam N, Chairman, VCAI  fr. Managing Partner, MCap Fund 

Advisors;  M r , Y M Deosthalee, CFO,Larsen  fr. Toubro Ltd, and  M r , S,C,Aggarwal, CMD SMC Group,

T he g ov ern me nt h as a lr ea dy

established a performance management

division within the cabinet secretariat

headed by a professional. So, the

performance of central ministries is under

closewatch. By introducing performance-

linked payouts, the Indian government is

finally going the corporate way which may

force central government employees to

deliver thei r best.

instruments of fund raising will only be

giving up their chances of entering the

next orbit of growth.

A mon g o th er s w ho spo ke o n t he

occasion included M r. Subbu

S ub ra man ia m N , C ha ir ma n, V C AI,

Ms. Kalpana Jain, Co-Chairperson VCAI

a nd M r. Sandeep Dhupia, Excutive

Director, KPMG.

•ASSOCHAM Bullet in - November 2010

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