PGEx Learning Forum Oversight in the Public Sector: Fostering Effective Relationships

1. PGEx Learning ForumOversight in the Public Sector:Fostering Effective Relationships March 27-28, 2013 at the NAC in Ottawa

2. The PGEx Learning Forum on Twitter We encourage you to tweet during the event using hashtag #PGEx PGEx Learning Event: Institute on Governance

3. LiseanneForand, President of Shared Services Canada Welcome and introductory remarks – Oversight in the Public Sector PGEx Learning Event: Institute on Governance

4. Kevin Page – Former Parliamentary Budget Officer John Williams – President Emeritus & Special Envoy, GOPAC and Past Chair Public Accounts Committee Legislative Oversight – Standing Before the Committee PGEx Learning Event: Institute on Governance

5. Keith Beardsley, Partner at True North Public Affairs and Former Deputy Chief of Staff to Prime Minister Stephen Harper Toby Fyfe, Vice-President, Learning Lab, IOG The Year in Governance – Surveying the HEadlines PGEx Learning Event: Institute on Governance

6. Todd Cain, Vice-President, Public Governance, IOG Day Two WeLCOME PGEx Learning Event: Institute on Governance

7. Mel Cappe, Professor, School of Public Policy and Governance, University of Toronto MaryantonettFlumian, President, IOG and Former Deputy Minister of Service Canada Keynote debate:“Is the distribution of government responsibilities undermining our system of government?” PGEx Learning Event: Institute on Governance

8. Refining the Governance Continuum: Where Do You Fit In? Karl Salgo, Executive Director - Public Governance Exchange

9. Origin of the IOG Governance Continuum • Shift in roles of traditional governance relationships • Growth in long-standing public sector use of alternative organizations • Need for a conceptual model for modern public governance PGEx Learning Event: Institute on Governance

10. Policy Functions of Government Bodies • Department: Traditional ministerial department (generalist) • Advisory:Provides advice to Government on particular issue • Regulatory: Establishes and/or enforce rules of conduct against obligations set out in existing statutes and/or regulations • Adjudicative:Renders impartial quasi-judicial decisions to resolve disputes • Operational Service: Delivers programs and services to the public in a primarily non-commercial manner within a well-defined policy framework • Operational Enterprise:Sells programs and services to the public in a primarily commercial manner • Supervisory: Impartially oversees or investigates defined activities and publicly report on its findings • Trust: Invests or administers funds on behalf of the public or other groups and entities PGEx Learning Event: Institute on Governance

11. Institute on Governance Continuum Public Legislature Executive Minister Department P3s, Grants and contributions, etc. Advisory Adjudicative Supervisory Trust Regulatory Operational Enterprise Operational Service Organizational Autonomy Institutional Control Policy function Direction/Accountability Relationship PGEx Learning Event: Institute on Governance

12. IOG Autonomy Index PGEx Learning Event: Institute on Governance

13. Governance Continuum Relationships Public Legislature Executive Minister P3s, Grants and contributions, etc. Department Advisory Adjudicative Supervisory Trust Regulatory Operational Enterprise Function Operational Service Organizational Autonomy Direction/Accountability Relationship Institutional Control PGEx Learning Event: Institute on Governance

14. Case Study: Canadian Wheat Board • The Institute on Governance analyzed changes in the governance model of Canadian Wheat Board across these periods of transformation: Crown Corporation Shared Governance Interim Operations Private Organization 2011 2017 1965 1997 PGEx Learning Event: Institute on Governance

15. Case Study: Canadian Wheat Board • Autonomy index: Scores for five categories below are determined by rankings within indicators PGEx Learning Event: Institute on Governance

16. Case Study: Canadian Wheat Board Crown Corporation (1965-1997) Shared Governance (1997-2011) Interim Operations (2011-2017)

17. Case Study: Canadian Wheat BoardLessons Learned • Low score for a share governance organization • Shared governance model is an exceptional choice for an organization with a high level of public policy authority • Level of autonomy accorded to CWB was calibrated to organizational function PGEx Learning Event: Institute on Governance

18. Science + Technology on the Governance Continuum • The IOG have been examining the governance of science and technology departments in the Government of Canada • Part of this work involves mapping the landscape by plotting S+T organizations and relationships on the Governance Continuum • Agriculture and Agri-Food S+T Portfolio is one example PGEx Learning Event: Institute on Governance

19. Agriculture and Agri-Food Institutions PGEx Learning Event: Institute on Governance

20. Agriculture and Agri-Food S+T Portfolio Public Legislature Executive Minister Department of Agriculture and Agri-Food (0) Canadian Food Inspection Agency (40) Canadian International Grains Institute (85) PrioNet (90) Canadian Grain Commission (48) PGEx Learning Event: Institute on Governance

21. Health S+T Portfolio Public Legislature Executive Minister Department of Health (0) Public Health Agency of Canada (33) Hazardous Materials Information Review Commission (48) Canadian Institute for Health Research (50) Canadian Centre on Substance Abuse (82) Canadian Agency for Drugs and Technologies in Health (86) Canadian Institute for Health Information (86) Canadian Partnership Against Cancer Corporation (86) Health Council of Canada (86) Mental Health Commission of Canada (87)

22. Industry S+T Portfolio Public Legislature Executive Minister Department of Industry (0) Canadian Space Agency (29) National Research Council of Canada (54) Canadian Foundation for Innovation (82) Natural Sciences and Engineering Research Council (44) Social Sciences and Humanities Research Council (44)

23. Types of S+T Institutions PGEx Learning Event: Institute on Governance

24. Type of S+T Institutions and Year of Origin SGC X X X X X X X X X X X X X X X Crown Corp. X Serv. Agency X Dept. Corp. X X X X X Stat. Agency X X X X X X SOA X Dept. X X X X X X X X X 1880 1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 PGEx Learning Event: Institute on Governance

25. From governance structure to governance ecosystem • The continuum and autonomy index clarify how relationships are structured among organizations, but not how they are managed • The IOG Governance Scorecard (next presentation) will help us understand this governance ecosystem of relationships PGEx Learning Event: Institute on Governance

26. How Good is Your Governance? The IOG Governance Scorecard Todd Cain, Vice-President – Public Governance

27. The IOG Governance Scorecard • How Good is Your Governance? • Session will focus on the governance ecosystem, emphasizing relationships, not wiring • This will be achieved by introducing and then working with the IOG scorecard hands-on PGEx Learning Event: Institute on Governance

28. Scorecards: Purpose and Examples Purpose Example Globe and Mail’s Board Games Index Ibrahim Index for African Governance World Bank’s World Governance Indicators Bertelsmann Index of Sustainable Governance Indicators IOG Governance Scorecard • Assess and inform private governance within corporations • Assess and inform public governance across developing countries • Assess and inform public governance across developing and developed countries • Assess and inform public governance across developed countries • Assess and inform public governance within Canada and provide a comprehensive framework for governance PGEx Learning Event: Institute on Governance

29. Purpose of an IOG Governance Scorecard • To systematically articulate the elements of good governance in a comprehensive, in-depth assessment framework; • To assess the quality of governance in Canadian organizations and pinpoint specific areas of risk; • To inform a public conversation about good governance by creating the space and the information necessary for constructive dialogue; and • To provide leaders with early warnings and “actionable information” for improved design, more effective practices and proactive risk management. • IOG Scorecard achieves these goals by being more in-depth than most scorecards – criteria are detailed and systematic making it more useful as a management tool PGEx Learning Event: Institute on Governance

30. Applications of the IOG Governance Scorecard • A facilitated self-assessment for individual public sector organizations • An independent assessment of individual organizations/sectors by a third-party expert organization • A way to assess public policy outcomes • Organization governance enables the achievement of outcomes that maximize public net benefits to intended beneficiaries PGEx Learning Event: Institute on Governance

31. Principal Drivers of Outcomes • Public Policy Linkages: The organization has strong public policy linkages to the policy authority • Strategic Capacity: The organization has strong strategic decision making and implementation capabilities • Accountability and Transparency: All involved have the information needed to evaluate achievement of outcomes by the organization • Adaptability and Resilience: Mandates, objectives and institutional arrangements are reviewed and adapted as appropriate PGEx Learning Event: Institute on Governance

32. Driver #1: Public Policy Linkages Public Policy Linkages: The organization has strong public policy linkages to the policy authority • Public Policy Mandates • Organization decision making is backed by mandates of the democratic policy making authority (legislative, executive, ministerial) • Organizational Objectives • Organizational objectives are supported by its public policy mandates and communicated effectively PGEx Learning Event: Institute on Governance

33. Driver #2: Strategic Capacity Strategic Capacity: The organization has strong strategic decision making and implementation capabilities • Strategic Planning Capacity • The organization’s planning process and decision making is strong and clearly linked to mandate with effective internal oversight of performance • Strategic Implementation Capacity • Organizational objectives cascade through the organization and are supported by programs and capacity PGEx Learning Event: Institute on Governance

34. Driver #3: Accountability and Transparency Accountability and Transparency: All involved have the information needed to evaluate achievement of outcomes by the organization • Citizen Awareness: Citizens have the knowledge and information needed to evaluate organization achievement of outcomes • Parliament and the “Centre” Oversight Capacity: The legislature, cabinet and central agencies have the knowledge and information needed to evaluate organization achievement of outcomes and take steps to stay informed PGEx Learning Event: Institute on Governance

35. Driver #4: Adaptability and Resilience Adaptability and Resilience: Mandates, objectives and institutional arrangements are reviewed and adapted as appropriate • Self-Monitoring: • The organization periodically assesses and reports on the relevance and achievement of its outcomes • Institutional Adaptability and Resilience: • The organization monitors its institutional arrangements, reforming them is necessary PGEx Learning Event: Institute on Governance

36. Complete Framework PGEx Learning Event: Institute on Governance

37. Beta Test Conclusions: Methodology • Expert third party assessment can yield valid results using only publicly available information, but places a premium on transparency. This will yield more precise results for some sectors and organizations than others. • Given the detailed nature of the indicators, facilitated self-assessment will yield more refined assessments and will tend to pinpoint areas of vulnerability more precisely. • Scores for each organization have been reliable across raters. PGEx Learning Event: Institute on Governance

38. Beta Test Conclusions: Application • IOG scorecard employs more detailed, in-depth criteria than typical scorecards • The scorecard benefits from expert application • Detailed nature of indicators provides “actionable information” – that is, pinpoints specific areas of risk and specific possible improvements • Detailed nature of indicators also means that information will be most “actionable” in facilitated self-assessment context or when third-party expert consults with organization PGEx Learning Event: Institute on Governance

39. Breakout session At your tables: • Choose one of the principle drivers • Discuss how well your organization, or a specific distributed organization you interact with, performs using the enabler descriptors in your workbook as a yard stick • Are some governance relationships more effective than others? • Which area presents the greatest opportunity for improvement? PGEx Learning Event: Institute on Governance

40. Todd Cain, Vice-President, Public Governance Terry Ansari, Board Chair, Institute on Governance and Vice-President Business Solutions, Cisco Canada Colleen Kelley, Vice-President Business Operations, Stratford Managers Foresight and Problem Solving in delegated relationships:Lessons from the Private Sector PGEx Learning Event: Institute on Governance

41. John Knubley, Deputy Minister of Industry Canada Yves Desjardins-Siciliano, Corporate Secretary and Counsel, VIA Rail Susan Margles, Vice-President, Government Relations and Policy, Canada Post Oversight of Crown Corporations – Delivering Value and Respecting Values PGEx Learning Event: Institute on Governance

42. Navigating Relationships between Crown Corporations and Government – A Case Study Ottawa, March 28, 2013 Yves Desjardins-Siciliano, General Counsel & Corporate Secretary

43. Disclaimer • This is not about VIA Rail and Transport Canada. • This is not as much about success as it is about navigation. • This is about an approach and a methodology. • This is about governance. PGEx Learning Event: Institute on Governance

44. “Before I served as consultant to Kennedy, I had believed… that the process of decision making was largely intellectual and all one had to do was walk into the President’s office and convince him of the correctness of one’s view. This perspective I soon realized is as dangerously immature as it is widely held.” Henry Kissinger PGEx Learning Event: Institute on Governance

45. Roles & Accountabilities - Board • Governor-in-Council Appointees • Duty to the Corporation – Protect value • Loyalty to the Government • Agency Issue • Lessons: • Know your directors • Use their political sense to test your assumptions • Keep them informed on all matters related to government PGEx Learning Event: Institute on Governance

46. Roles & Accountabilities - Management • CEO usually a Governor-in-Council Appointee, with or without Board Support • Management hired by CEO • Primary Role: Operate the business – Create value • Primary Accountability to the Board • Lessons: • Advise on policy, when asked • Accept broader accountability to government • Keep government partners informed on matters related to their portfolios PGEx Learning Event: Institute on Governance

47. Roles & Accountabilities - Government • Portfolio Department • Other Departments/Central Agencies • Ministerial Offices • Primary Role (re Crown Corps.): Avoid and Manage Crisis • Parliamentarians • Lessons: • Government is not homogenous • Different issues have different proponents – identify early • Keep portfolio officials informed PGEx Learning Event: Institute on Governance

48. Operating within Multiples Levels • Map it out: • Portfolio Minister • Portfolio Department • Other Key Ministers and Portfolios • Key Parliamentarians • Listen, Educate, Inform • Lessons: • Single points of contract • Meet regularly PGEx Learning Event: Institute on Governance

49. Government Framework • Crown Corporations and Minister • Mandate letter • Regular meetings with staff • Crown Corporations and Department • Shared objectives: Agree on how to raise issues • Regular meetings • Joint agendas • Meetings with the Board • Minister • Deputy-Minister & Senior Officials PGEx Learning Event: Institute on Governance

50. Proactive Protocols • Two-pronged communications • Minister’s office • Department • Transparency • Openness • Two-way communications • Heads-up! • Asymmetric information • Responsive • Respectful • Departmental Officials are a key resource • They can help in navigating through Ottawa • They can save your time • They bring skills, experience & corporate history PGEx Learning Event: Institute on Governance