Decentralization & Partnership with the Private Sector: Reform Strategy in the Civil Service Sector -Bahrain

1. Decentralization & Partnershipwith the Private Sector:Reform Strategy in the Civil Service Sector -Bahrain

2. Background to Civil Service Bureau (CSB) • CSB was established in 1975 • Role : Administer all staffing and personnel affairs in the CS sector • 30 years central administration of services • Rules, regulations and standards • Realized advantages of Centralization : Uniformity, control and Justice. • However Centralization resulted in: Red tape, bureaucracy, less autonomy for Govt. org.

3. In 2005 ISO 9001:2000 was introduced • CSB committed to providing its customers with highest level of quality services and satisfaction. • Embracing the following 8 quality management principles: • Customer focus • Leadership • Involvement of people • Process approach • System approach to management • Continual improvement • Factual approach to decision making • Mutual beneficial supplier relationship

4. Implementing Quality Management at CSB • New committees formed, targets and objectives set. • Mission statement and visions were introduced for each directorate and for CSB as a whole. • New way of handling services, target dates for implementation; Non conformances reported and corrective actions/ preventive actions put into effect. • New thoughts introduced; decentralization and experience witnessed in Singapore.

5. Mission and Vision of CSB • Mission : to develop the level of civil service, to raise the level of employees productivity, and to ensure justice and equity in the the treatment of employees • Vision : to be a pioneer, excelling in providing services and management consultancy to civil service.

6. CSB Values • Embracing rules and regulations • Justice, fairness and equal opportunities. • Belongingness: sense of unity • Professionalism • Quality and Excellence • Transparency • Integrity, honesty and impartiality • Participation in Decision making • Team work • Initiative and creativity • Motivation and protection

7. CSB Strategies to 2010 • Minimize routine admin work through decentralization and automation …. • Focus on value added consultative services • Take leading role in promoting strategic management • Promote HR culture based on twin concepts of competence and merit…. • Facilitate and support culture of Quality

8. CSB Action Plan • Enhance elements of change; people and other resources – new flow charts made for processes • All administrative work is done by government organisations –more efficient processes • Oracle introduced in place of Wang System • Link with government ministries through work flow technology in Oracle system • Some services 100% decentralized, reference to approved standards and regulations • New CS law passed in July 2007

9. Future strategies for CSB • In process of CSB-wide re-engineering project to build on progress so far and develop CSB strategic role • Developing objectives in line with new national plan, to promote HR excellence across government, enhance skills and competencies of CS employees, and develop more efficient public service

10. Partnership with Private Sector • International Monetary Fund recommended this in 2004 for Bahrain: “the main challenge ...will be …creating employment opportunities for the growing Bahraini labor force. ...in particular, reducing the role and size of the public sector while encouraging private sector development”.

11. Privatisation so far in Bahrain • Municipal waste management/cleaning • Power and water station at Hidd – Hidd Power Company • Public Transport Buses - CARS Bus Services • Mina Salman Port – Moller Maersk • Outsourced transport and catering at Ministry of Health – Avis Car Hire • Cleaning/security contracts in ministries

12. Success Story: Hidd Power Station • From July 2004 on Build-Own-Operate (BOO) basis • Plant sold by government for 738m dollars • Designed to reduce pollution and noise • Only needs 100 employees compared to 200 when previously run by the government • 99% reliability for gas turbines to back up other plants • Employees very happy with pension packages offered • Speed of award process and finance recognised internationally

13. Plans for Privatisation in progress • More Electricity and Water Production • Bahrain Airport Company • Building maintenance and Sewerage works • New King Hamad General Hospital • Post Offices • CSB also looking at outsourcing some of its own services to ministries • Other areas across Health, Infrastructure, Social Care and Customer Services…

14. New Privatisation Initiatives • New decree in early 2008 to establish High Committee for Privatisation and set legal framework to enhance process • The Privatisation and Outsourcing Directorate established at Ministry of Finance to: • Study projects for handing over government services to the private sector • Support government organisations to implement privatisation , including fast-track processes • Appoint and monitor external consultants to assist with privatisation • Co-ordinate with government bodies to ensure efficiency and effectiveness of processes and successful communication

15. Role of CSB in Privatisation • Conduct reviews of privatisation initiatives at ministries • Conduct re-deployment/ retraining of surplus manpower • Co-ordinate Pension arrangements for employees • Approve and renew Manpower contracts at ministries for cleaning, consultancy etc • From MOF guidelines on contracting out services: “The success or failure of implementing the strategy, whether contracting out, market orientation, or privatization, will largely depend on the manpower policy adopted by the ministry concerned’’

16. CSB Privatisation Project 2007-08 • Working in co-operation with MOF on: • Revised version of CSB Regulations on Early Retirement, • Manpower processes and procedures for implementation of privatisation exercises across ministries • Enhanced processes for large scale redeployment programmes • Recommendations for protection of rights of Bahraini employees transferring from government to private sector • Standardised organisations in ministries for the supervision of outsourced contracts, with appropriate job descriptions

17. Conclusion and Outcome… • Change is constant .. Bahrain developing very fast, just like all GCC countries • Obstacles are always there…real challenge to keep updated of the demand and benefit from the experiences of others… • Right decisions must always be made; what to decentralize or outsource; and what to maintain under govt. control…

18. Thank you for listening! Any questions?