Improving Public Service Performance “ The Cayman Islands Experience ”

1. Improving Public Service Performance“The Cayman Islands Experience” Gloria McField-Nixon Chief Officer, Portfolio of the Civil Service

2. Presentation Overview • A look at CI Reform Initiatives • Legal Framework for Financial Reform • Legal Framework for HR Reform • Critical Success Factors • Lessons Learned • What’s Next?

3. Snapshot of CI Public Service • 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.

4. 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 GDP • OECD 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 budget • Five OECD countries have adopted fiscal rules re debt levels and balanced budget. CI has strict fiscal rules. • Audited government accounts within 6 months after FYE • Fewer than half of OECD countries meet target. CI audited Annual Reports are delayed by several years.

5. Reform Initiatives are Interlinked and Complementary

6. Critical Elements of Financial Reform • Strategic Focus • Strategic Policy Statement • Clear accountability based on: • Output (purchase) performance • Ownership performance • High quality financial info based on accrual accounting • Transparency: • Quarterly performance reporting • Budget updates • Decentralisation of authority • Management systems to deliver performance

7. Key Elements of HR Reform

8. Legislative Framework for HR Reform

9. Oversight of the Civil Service • Decentralised Management of Staff • Personnel 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

10. Key Roles under PSML • 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

11. Modern Employment Practices • 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

12. The Performance Assessment • 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 within30 daysafter the annual report of the Ministry • The assessment must be based on factual comparisons of actual performanceas reported in the quarterly and annual reports of the Ministry • Must involve the employee, and have their sign off

13. Outputs Linked to Performance

14. Employment Practices - Highlights • Caymanianisation – in processes where employees are assessed as being broadly equal, Caymanians are given preference • All Employees have an employment agreement • Staff 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

15. New Safeguards • Staff 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

16. New 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

17. Impact of PSML

18. Where 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 decentralization • Re-visit Public Education - Low Awareness as to WHAT reforms mean and WHY they are relevant • Old Behaviors Persist – eg. Temptation to revert to input budgeting • The reforms have a wide cast of decision makers but the system is heavily dependant upon distinction in roles

19. Critical Success Factors • Transparency – Enabling active public participation and oversight • Improved information tools and improved use in decision making • Translate the benefit of reforms into results relevant to your public • Creating a culture conducive to change • Identifying the most appropriate solution AND setting realistic timelines • Ensure reforms are both visible and RELEVANT to the public

20. Remember….Public Sector Reform is a journey and not a destination.Thank you