Public Sector Reform (Lessons

Learned and Conclusions)

(Dr. Christopher Gan)

Public Sector Reform Questions

What is public sector reform?

Why public sector reform is critical?

What types of public sector reform should be undertaken?

When should public sector reform be implemented?

Who gain and who lose from public sector reform?

Course Topics

Impact of Globalization on GMS Public Sector Overview of GMS Public Sector Reform Financial Crisis on Reform Program

Country Situation Analysis on Public Sector Reform Introduction to Public Sector Reform : What, Why and

How Public Administration Reform Multiple Functions of Government Agencies Decentralization and Enablement in Public Sector

Course Topics

Importance of Good Governance in Public Sector Reform

Field Visit Khon Kaen Public Administration Organization

Corporatization of SOE Restructuring of SOEs Field Visit

Provincial Electricity Authority Privatization Leadership in Public Sector Reform

Lessons Learned

There is no one best way of administrative reform, even though the public administrations of GMS states are getting more similar

E-government is now becoming the most important driver for administrative reform, helping to attain goals of “good governance”

A good management of change is crucial for reform success

(Source: Klaus Lenk, UNIDEM CAMPUS Seminar on “Civil Service: the Authority Serving the Public or the Public Serving the Authority”, Trieste, Germany, 22-26 November 2004)

Lessons Learned

Efficiency is the dominant goal of Public Management

Good Governance criteria suggest a wider range of goals:

Democratic decision-making about public affairs Effectiveness in executing the political will Transparency to enhance legitimacy Accountability Capacity building for providing resilience and

efficiency (Source: Klaus Lenk, UNIDEM CAMPUS Seminar on “Civil Service: the Authority Serving the

Public or the Public Serving the Authority”, Trieste, Germany, 22-26 November 2004)

No Single Best Way or Margic Formula

OECD Policy Brief on Public Sector Modernisation, October 2003, p.6:

The mistaken perception that countries share a common problem is often accompanied by the idea that there is a [range] of solutions available, any or all of which will be beneficial. This misconception, peddled under the label of “best practice”, has had tragic consequences in some developing countries

Lessons Learned

Start from where you stand Build a vision Promote cooperation among all actors

concerned Take contextual factors into account

when making choices Assess the costs of reform steps

Lessons Learned - Visions

Visions are the outcome of long processes of strategic reflection

Strategic thinking was generally absent in reform countries which hoped to adopt blueprints from abroad

National experiences are important for finding the right way, even if reform goals are identical to those of other countries

Lessons Learned - Cooperation

New innovative networks of reform-minded people will have to emerge, if reform is not to remain static and ineffective

Protecting one’s “territory” is an understandable reaction, especially in times of momentous change

But this reaction is extremely dangerous for reform success

Promoting cooperation requires cultural changes which take time

The role of consultants from outside can be very beneficial here

Lessons Learned – Costs of Reform

The costs of reform are often difficult to assess, and they frequently outrun initial estimations

New technical devices and new organisational

arrangements can be assessed fairly well. But the costs of providing training to the staff are difficult to assess

(Source: Klaus Lenk, UNIDEM CAMPUS Seminar on “Civil Service: the Authority Serving the Public or the Public Serving the Authority”, Trieste, Germany, 22-26 November 2004)

Two Waves of Reform(Source: David Osborne, “The Five Strategies for Reinventing Government,” The Public Strategies Group, www.psg.us)

The challenge in the GMS: Creating a professional and honest public service,

free of political manipulation and patronage hiring

Improving service and access by: Transforming bureaucratic public services into

flexible, innovative, Information Age organizations

Strategies to Avoid Problems

Establishing the rule of law Creating an independent, honest judiciary Prosecuting corruption Establishing transparent budgeting,

procurement, & contracting Creating an effective audit system Creating a professional, well-trained,

adequately paid civil service Barring civil servants from involvement in

political campaigns

One Cannot Command the System to Change

You have to find levers that change the internal dynamics

The goal a system in which every organization and

every employee wants to improve performance… and is empowered to do so

Basic Steps in Budgeting for Outcomes

1. Set the price of government: How much will we spend?

2. Set the priorities of government: What outcomes matter most to our citizens?

3. Set the price of each priority: How much should we spend to achieve each outcome?

4. Develop a purchasing plan for each priority: What strategies have the most impact?

Basic Steps in Budgeting for Outcomes

5. Require programs to compete for funding, based on their ability to deliver the desired results

6. Rank the offers based on their cost effectiveness, send the rankings out and ask for better offers

7. Rank the final offers and draw a line where the money runs out

8. Negotiate performance agreements with the chosen providers

The Ultimate

Align spending with priorities Buy results, not costs Low-value spending is forced out of the budget Important new investments go to the front of

the queue Performance accountability Continuous reform/ improvement “Common Sense” communications

Service to Citizens and to the Economy

One-stop “single-window“ administration is possible in many ways

Often, the wrong priorities have been set in “advanced“ countries

Rankings do not always measure true success, since specific national factors are not taken into account

(Source: Klaus Lenk, UNIDEM CAMPUS Seminar on “Civil Service: the Authority Serving the Public or the Public Serving the Authority”, Trieste, Germany, 22-26 November 2004)

Integrated e-Government

An emerging architecture of e-Public Services: Spatial and organisational separation of service

production and delivery Service delivery in Front Offices (both virtual and

physical) Service production in Back Offices Seamless connections allowing “single-window“

service Enrichment of Front Offices with additional functions

(commercial services, e-Democracy)

(Source: Klaus Lenk, UNIDEM CAMPUS Seminar on “Civil Service: the Authority Serving the Public or the Public Serving the Authority”, Trieste, Germany, 22-26 November 2004)

Culture Strategy: Changing Habits, Hearts, and Minds

Five Strategies to Reinvent Bureaucratic Government Core Consequences Customer Control Culture

C x C x C x C x C = Transformation

Conclusions

Training of administrators and inducing cultural change with empathy are particularly important

Senior managers and politicians need to acquire knowledge about strategies and tools for reform, including e-

government recurring pitfalls and “stumbling stones” of

innovation processes in the public sector the contextual factors which decide about

success and failure in their respective countries

Better access to and capacity to take

advantage of improved agricultural services

Better access and capacity to take

advantage of opportunities for rural non-farm employment, enterprise development

Better access to and capacity to take

advantage of transparent markets

Better access to natural resources

and capacity to manage them sustainably

Improved rural livelihoods and pathways out of

poverty