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Public Sector Transformation: Integrating and Managing New Initiatives

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Presentation to the

Human Resource Management Association of Jamaica Conference

Wyndham Hotel

Wednesday, 17^th November 2010

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Pat Sinclair McCalla

Chief Executive Officer

Public Sector Transformation Unit

Cabinet Office

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Vision for the Public Sector

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A transformed cohesive Public Sector that is performance-based, efficient, cost effective and service oriented

Contextual Framework for Public Sector Transformation

• Globalization: trade liberalization, competitiveness, best practices to benchmark local industry, open market for skills and knowledge.
• Fiscal Austerity as a result of the public debt: size, efficiency and cost effectiveness of the public bureaucracy.
• Public expectations and demands for transparency in doing business and greater accountability.

Contextual Framework for Public Sector Transformation

• Public Sector Wage Bill of 11.75 percent of GDP
• Complex procedures and lengthy delays
• Archaic manual systems
• Silo operations within government resulting in duplication and fragmentation of functions
• Decision making isolated from the delivery of service resulting in delays
• High transactional costs

Contextual Framework for Public Sector Transformation

• Jamaica ranked 87, up from 99 of 178 countries in the Global Corruption Index 2009 report
• Ranked 112 among 139 countries on the Global Competitive Index, for the burdens faced by businesses in treating with government regulations and bureaucracy
• Ranked 81 of 183 countries in Doing Business rankings, in the 2011 Report

Vision 2030

“Jamaica, the place of choice to live, work, raise families and do business”

Vision 2030

• What specifically can the Public Sector do and how can we strengthen the governance framework to ensure the realisation of the objective of Vision 2030?

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• Good Governance is the primary vehicle

Government versus Governance

• Government is the organization, machinery, or agency, through which a political unit exercises its authority, controls and administers public policy, and directs and controls the actions of its members or subjects.
• Governance is the exercise of political, economic and administrative authority in the management of a country's affairs at all levels.

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Good Governance

• Inherent to good governance are the inter-related and mutually reinforcing elements:
• transparency and responsiveness which are important for citizens participation and accountability;
• citizen participation which is essential for accountability and equity;
• consensus orientation which supports equity; and
• a functioning legal framework which helps ensure accountability

(Jamaica 2015: National Progress Report 2004 – 2006).

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The Public Sector Transformation Unit

• Consultative Monitoring Group (CMG) has general oversight of the work of the PSTU, reviews the recommendations and the strategies being pursued and monitors the implementation.

Mandate

To lead, monitor, evaluate and facilitate the implementation of the restructuring of the Public Sector for efficient, effective and economical Government

Public Sector Rationalization� Role, Core Functions and Priorities of Government

• Role of Government guided by the stated areas articulated by the Prime Minister in Parliament on September 30, 2009
• A safe, healthy and secure environment
• Effective and accessible justice system
• Good quality education system
• Access to basic health care
• Social welfare support for the disadvantaged and vulnerable
• Public infrastructure and related services
• Efficient public bureaucracy
• An appropriate policy environment and regulatory mechanisms
• Effective diplomacy

Public Sector Rationalization� Role, Core Functions and Priorities of Government

• Core functions of Government informed by an understanding of “what Government should do and pay for; what government must pay for, but does not have to do; and what Government should not do and should not pay for” (Osborne and Plastrik, 1997).

Public Sector Rationalization� Role, Core Functions and Priorities of Government

• Government and the public sector exist not for their own sustenance, but to transform the aspirations and preferences of citizens into policy actions, that further the cause and goals of the society, that the citizens individually and collectively want to and have reason to value and sustain.

(Dr. Gladstone Hutchinson – Director General, PIOJ)

Consultations with

Stakeholders at all levels

Approach to the Transformation

Consultations

Unions

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Consultations

Ministers

Permanent Secretaries

Senior Managers

General Staff

Focus Groups

Special Interest Groups

Approach to the Transformation

Approach to the Transformation

Change Management Mechanism

Interdisciplinary Transformation Teams (IDTTs)

• Representation on the IDTT include Human Resource Practitioners, Communication Specialists, Information Technology Specialists, Union representatives and staff at all levels of the organisation
• Review operations of Entity to determine areas for improvement in service delivery and increased efficiency

Approach to the Transformation

Change Management Mechanism

Interdisciplinary Transformation Teams

• Manage changes taking place within the organisation
• Keep all levels of staff informed of the changes taking place within their respective Entities
• Direct staff to various support services to include psychosocial counselling, business counselling, business facilitation, training and retooling available to facilitate the transition

Transformation Initiatives

• Facilitating a significant change in how Government delivers services internally and to the general public. Several initiatives recommended for greater efficiency and cost effectiveness, to include:
• Realignment of functions within government
• Divestment and privatization of functions and entities that could best be handled by the private sector
• Rationalization of office space occupied by Government Ministries, Departments and Agencies
• Shared corporate services

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Transformation Initiatives

• Strategic Human Resource Management
• human resource strategy, succession planning, workforce planning, talent management
• A defined contributory pension scheme and new leave arrangements for Public Sector workers.

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Transformation Initiatives

• Radical restructuring of established organizations, structures and systems to include :
• reviewing their purposes,
• introducing incentives,
• decentralising authority,
• implementing an Accountability Framework, and
• creating a new and different culture, conducive to achieving a well-motivated, efficient and accountable Public Sector that is results-oriented

Transformation Initiatives

• Change Management Plan with specially designed templates and protocols for:
• training,
• counselling,
• business and financial guidance,
• procedures for engaging Trade Unions,
• framework for mergers,
• psycho-social counselling,
• mechanism for redeployment of staff and the handling of staff terminations,
• managing the separation process, and
• assessing the results of change

Legislative Framework to support Good Governance

• Good governance requires the appropriate legal and policy frameworks that give credence to the Public Sector
• Acts and Regulations to be amended to allow for the new dispensation in governance.
• Entity specific Acts to be amended to provide for the changes necessary for proper management at all levels
• Support received from Private Bar (pro bono)

The Role of Information Technology in the Transformation of the Public Sector

• ICT will be used to automate ‘back office’ processes, a critical component of the Shared Corporate Service modality and transform the delivery of services to the public, through greater access in doing business with the Government.

Government of Jamaica Network (GovNet)

• GovNet is one of the linchpins in the transformation of the public sector and central to its achieving greater productivity, to advance Jamaica’s national development.
• GovNet will be the vehicle through which the seamless transfer of information between Government Ministries, Departments and Agencies and other stakeholders is operationalised.

Government of Jamaica Network (GovNet)

• GovNet will facilitate the harmonization of ICT infrastructure and systems across the Public Sector.
• GovNet will provide the vehicle for a suite of on-line services to the public, facilitating ease of doing business with Government.
• GovNet will strengthen the capacity of public institutions to deliver efficient and cost effective services and public goods.

Next Steps

• Review of the Master Rationalisation Plan by the Public Administration and Appropriations Committee (PAAC) of Parliament
• Report by the PAAC to Parliament
• Sign-off by the Cabinet
• Implementation of Recommendations

Conclusion: �The Agenda for Public Sector Transformation

• Public Sector transformation is not a choice, it is an IMPERATIVE
• Harmonization of government must be an overarching philosophy
• Focus on results-based management
• Adoption of value for money audit principles
• Transformational leadership required to manage the process

Vision for the Public Sector

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A transformed cohesive Public Sector that is performance-based, efficient, cost effective and service oriented

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Thank You