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In most countries:

Explore the challenges faced by governments in meeting new expectations and maintaining public trust. Analyze the role of citizens and the need for coherence or adaptability in government reform. Discover successful strategies for modernization and the importance of whole-of-government governance.

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In most countries:

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  1. 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

  2. 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

  3. Diagnosis: Most needed – Coherence or Adaptation? • Government – like all institutions – face two fundamental (and conflicting) challenges • Maintaining collectivity and stability • Adapting to changing circumstances

  4. 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, ...)

  5. 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

  6. 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

  7. 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

  8. Challenges for the Future

  9. 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

  10. 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

  11. 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

  12. Index of Degree to which C.S. System is Closed

  13. Index of Degree to which C.S. System is Closed

  14. Context for Performance MeasurementDifferent Kinds of Problem • Management • Control • Informed Policy • Transparency/Accountability/External Confidence

  15. Main Influences on Organisational Behaviour MarketsLow complexity Contracts Rules ClansHigh Complexity

  16. Public Service Models Professional Behaviourdominated by informal influences Rules Compliance Int. and Ext. Resource Controls Rule Bound Bureaucracy The Clan

  17. B/C Outcome Indicators Outputs Process Inputs Costs Ramanathan’s Model

  18. Managing Government Performance 4 levers Leadership & Vision Strategic Adaptation BoundaryRiding DiagnosticInformation

  19. Strengths and weaknesses of control regimes

  20. 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

  21. More information: • www.oecd.org/puma • www.oecd.org/puma/budget/ • www.oecd.org/puma/hrm/

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