reforming the public sector: how to make the difference

Reforming the Public Sector: H t M k th DiffHow to Make the Difference

Giovanni ValottiUniversità Bocconi, Milan, Italy

[email protected]

Lisbon, 28 January 2013

Public Sector Reforms

A priority on the political agenda of governmentssince the 1980s

A great number of reforms in different countrieswith differente results

Lack of systematic evaluation of outcomes Lack of systematic evaluation of outcomes

Public Sector Reforms and Competitivenessp

The efficiency of the public sector is a relevantdeterminant of:determinant of:

Citizens’ quality of life

Attraction of investments Attraction of investments

Development of the economic system

Less reforms, more changes, g

BUILDING A BRIDGE BETWEEN

The role of

INSTITUTIONAL AND MANAGERIAL REFORMS

a) Improvement of the overall legal framework a) Focus on key principles to guide the

Managerial reformsInstitutional reforms

) p g

b) Clearer definition of the responsibilities of differentgovernment levels

a) Focus on key principles to guide the reform process (e.g., effectiveness, efficiency, economic viability)

b) Governance of the reforms’ WordsRefo s “i actio ”c) Redesign of the system of relations within the public sector

d) Improved principles and systems of empowerment foragencies

implementation

c) Safeguard of the reforms alreadyimplemented

Pythagorean theorem 24

Archimedes' principle 67

Ten Commandments 179

Reforms “in action”

Change Management

agencies

e) Qualification of the competitive framework in which public functions are carried out (Which role for the market?)

United States Declaration of Independence 300

European smoking bans 24.942g gf) Simplification

Explaining the implementation gapp g p g p

• Lack of incentives• Lack of responsibility

L k f t bilit

Inadequate policies and

str ct ral reforms • Lack of accountabilitystructural reforms

R i t tLack ofmiddle

• Politicization• Bureaucratization

Resistances tochange due to the dominant culture

middle and long

termstrategy

• Lack of managerial skills, systems, Weak organizational

strategy

cultureorganizational capacities

How to fill the gapg p

Considering the difference betweendifference between

public and private sectors

Creating a real pressureon results, like in the

sectors

,private sector

How to make the difference

T H E P I L L A R ST H E P I L L A R S

1. Measuring performanceg p

2. Enhancing transparency

3. Boosting motivation of civil servants

4. Increasing trust in government

5. Improving leadership


Why?

Wh ?

Why?The development of performance measurement and evaluation systems in government meets several needs:Why?

What?government meets several needs:

• Improving both the quality of the strategies and the ability to implement them−Politicians−Politicians

• Improving the effectiveness and efficiency of management−Managers

Who?How?

Managers

• Being accountable−Citizens and stakeholdersHow?Citizens and stakeholders

• Managing institutional relations−Other levels of government and oversight bodiesg g


What?What?Strategy implementation

ServicesServices Ben

Ben

Health• Financial

• OrganizationalR l i l

Health• Financial

• OrganizationalR l i l

nch

mark

nch

mark

• Relational• Relational

kk

O tO tOutcomesOutcomes


What? Indicatori per ambito USAdi i d Indicatori per ambito ‐UKI di U i d Ki dWhat?7%

1% 2%

Indicatori per ambito ‐USA

Impatti

Strategia

Attività e servizi

Indicators- United States

I

S

A

Impacts

Strategy

Activities and 7%

5%7%

Indicatori per ambito ‐UK

Impatti

Strategia

Attività e servizi

Indicators - United KingdomI

S

A

Impacts

Strategy

Activities and services

32%

24%

15%Salute finanziaria

Salute organizzativa

Salute relazioni

A

S

So

S

services

Financial healthOrganizationalhealth

Relational

34%

22%

9%

7%

Salute finanziaria


Salute relazioni

S

So

S

services


RelationalHealth

19%24%

Contesto

S

C

Health

Context

16%22%

ContestoC

Health

Context

Indicatori per ambito ‐ GermaniaIndicators - GermanyIndicatori per ambito ‐ FranciaIndicators - France

10%

0%

0% 0%

0%Impatti

Strategia

Attività e servizi

S

A

Impacts

Strategy


21%

2%7%

3% 0%Impatti

Strategia

Attività e servizi

S

A

Impacts

Strategy


69%

21% Salute finanziaria


Salute relazioni

S

So

S


RelationalHealth

21%46%

Salute finanziaria


Salute relazioni

S

So

S


RelationalHealth

ContestoC ContextContestoC Context


How? Use of performance budgeting system: indicator consisting of 14 variablesHow? f p f g g y g 4

K • Key Performance Indicators (KPI)

• Performance Budgetingg gSystem

• BenchmarkingSource: OECD, 2007

Benchmarking


Who?Who?

Not only self-evaluation Not only self-evaluation

I d d t b di Independent bodies

• Accreditation/certification

• Audit

2. Enhancing transparencyg p y

Focus on performance Efficiency in allocating and spending resources Effectiveness doing the right things and getting results

Honesty and fairness NYC Stat (http://www.nyc.gov/portal/site/nycgov/?front_door=true )( p // y g /p / / y g / )

U f i dli Immediacy

User friendliness

UsabilitySelectivity

y

Promoting citizens’ and stakeholders’ involvement Open government – US (http://www.whitehouse.gov/open)

3. Boosting motivation of civil servants3 g

W H I C H B A L A N C E B E T W E E N :

R d bli

W H I C H B A L A N C E B E T W E E N : P E O P L E D E V E L O P M E N T A N D C O S T C U T T I N G ?

Reduce public expenditure and control

personnel cost

Develop and Develop and empower civil

servants


T H E P I L L A R S O F T H E H R S T R A T E G YT H E P I L L A R S O F T H E H R S T R A T E G Y

3. MOTIVATE

1 ATTRACT

2. SELECT THE RIGHT PEOPLE

THE RIGHT PEOPLE

1. ATTRACT THE RIGHT PEOPLE

PEOPLE


1. ATTRACT THE RIGHT PEOPLE


P U B L I C S E C T O R A S A G R E A T P L A C E T O W O R K : P U B L I C S E C T O R A S A G R E A T P L A C E T O W O R K :

E M P L O Y E R B R A N D I N G V A L U E P R O P O S I T I O N

What is Employer Branding?

“The employer brand establishes the identity of the firm as an employer” (Conference Board, 2001)

“ l k” (Mi hi 8)“. . . a great place to work” (Minchington, 2008)

The “value proposition” of the employer to potential applicants and t th l (Ei b t l 2001)to the employees (Eisenberg et al., 2001)

The strategy to attract, recruit, select and retain talents (Sullivan, 2004)2004)


T H E I M P A C T O F T H E E B V PT H E I M P A C T O F T H E E B V P

EmployerEmployerBrand

Associations

EmployerImage

EmployerAttraction

EmployerBrandingg

OrganizationIdentity Employer

Brand EmployeeP d i i

OrganizationalCulture

y yBrand

Loyalty Productivity


2. SELECT THE RIGHT PEOPLE


R E C R U I T M E N T A N D S E L E C T I O N P I L L A R SI N T H E P U B L I C S E C T O R

Recruitment and selection

TransparencyTransparency EfficiencyEfficiency EffectivenessEffectiveness

Fi d h i h Be neutral and trasparent

Reduce costs and time

Find the right person for the right

job


R E C R U I T M E N T A N D S E L E C T I O N T O O L SR E C R U I T M E N T A N D S E L E C T I O N T O O L S

• Proactive approach towards the labor market

• Competency based recruitment systems• Competency-based recruitment systems

• Chose the right tool for the right competencyChose the right tool for the right competencyto be assessed

• Managing internal mobility


P R O A C T I V E A P P R O A C H T O W A R D S T H E L A B O R M A R K E T

Possibility of searching for jobs in the public sector

Possibility of receiving email notification whennotification whenthe applicant profilefits an open positionThe most interesting

job offers of the week

Recruiting website of the Australian public sector


P R O A C T I V E A P P R O A C H T O W A R D S T H E L A B O R M A R K E T

e-recruitment

https://www.youtube.com/watch?v=8cl4Mi84N9Ep // y / 4 4 9


C O M P E T E N C Y B A S E D R E C R U I T M E N T S Y S T E M SC O M P E T E N C Y - B A S E D R E C R U I T M E N T S Y S T E M S

At the European Commission, in the pre-selection stage,

In the selection process, skills are assessed by

A l i d

p g ,skills are assessed through a computer-based test

skills are assessed by dedicated assessmentcenter

Analysis and Problem Solving

CommunicatingLeadership At the end of the selection

EPSO competencyframework

Deliveringquality and results

Workingwith others

process, all candidates receivethe competency passportwith the comprehensiveassessment of the demonstrated

Learning and development

Prioritisingand organising

Resilienceskills. For selected applicants itbecomes the basis for future training and development.

and organising

3.Boosting motivation of civil servants3 g

M A N A G I N G I N T E R N A L M O B I L I T Y

The PORTFOLIO is a tool to record all the competencies

( l h j b d i i )(relevant to the job description) developed during the

professional life


3. MOTIVATE PEOPLE


T H E M O T I V A T I O N C Y C L ET H E M O T I V A T I O N C Y C L E

1. Listen to people needs

8 h 2. Plan job contents

8. Boost the reputation and

employer brand of the institution

3. Develop positive

environments

7. Design fair and transparent

evaluation t environmentssystems

4. Create and manage

affordable expectations

5. Design coherent

6. Align the the rewarding

systems

compensation systems

4. Increasing trust in government4 g g

T H E I S S U E O F I N T E G R I T Y :T H E I S S U E O F I N T E G R I T Y :

T H E W O R L D B A N K C O N T R O L O F C O R R U P T I O N I N D E X ( 2 0 1 1 )


I N T E G R I T Y M E A N S E F F E C T I V E N E S S A N D E Q U I T YI N T E G R I T Y M E A N S E F F E C T I V E N E S S A N D E Q U I T Y

Compliance with the rules doesn’t mean bureaucracy:Compliance with the rules doesn t mean bureaucracy:

• the cost of corruption (World Bank estimates about 770 billion)

• investment attraction

• growth and competitiveness of enterprises

• motivation and sense of belonging of civil servants

• the relationship between citizens and institutions and the

t ti f litprotection of equality

• improvement of the ruling class


Compliance-based Ethics Management (processes rules controls etc )Studies on Government Compliance-based Ethics Management (processes, rules, controls, etc.)

a great number of measures adopted

Studies on GovernmentEthics propose differentapproaches Integrity-based Ethics Management (aspirations, values, social control, etc.)

A comparative OECD analysis of 29 member countries(Trust in Government, OECD,2000) highlights:

their inefficacy

a great number of measures adoptedto prevent corruption

“ The main impediment to achieving higher standards for combating corruption lies in the very nature of corruption itself. Corruption occurs because corrupt officials, who are well aware of the legislative framework designed to prevent corruption, are able to plan and commit with impunity the very crimes that the laws and regulations are meant to punish. This means that (….) only a deliberate effort to persuade officials to change their conduct will lead them to behave in an ethical manner.

This can be achieved by combining dissuasive legal and procedural provisions with solid training in ethics and morality training in ethics and morality. This training must begin with the teaching of the citizenship ethic in families and schools, and continue in government with the service ethic (…).

However, the values and convictions of the service ethic should not be limited only to public, y pemployees, but should be shared by everyone – both in the public and the private sector.”


T H E “ E T H I C S ” I N F R A S T R U C T U R E ( O E C D 2 0 0 0 )T H E E T H I C S I N F R A S T R U C T U R E ( O E C D , 2 0 0 0 )

Ethical d d

Values

• Impartiality

Standards

• Rules• Procedurespa a y

• Legality• Integrity

+Effi i Sanctioning

• Procedures• Accountability• ResponsibilityMonitoring

and• Efficiency• Transparency

Sanctioning

• Disciplinary actions

andReporting

• ControlsA f • Incompatibility

• Sanctions and penalties

• Assessment of introducted

measures• TransparencyTransparency

5. Improving leadership5 p g p

W H A T S H O U L D L E A D E R S F O C U S O N ? W H A T S H O U L D L E A D E R S F O C U S O N ? T H E T R A N S F O R M A T I O N A L L E A D E R S H I P P A R A D I G M E

Technical performance• to get things done, fostering efficiency and effectiveness

Development of peopleto motivate the followers to actually achieve the goals• to motivate the followers to actually achieve the goals

Organizational alignment with external needs and opportunities• to produce useful change


L E A D E R S H I P I S D I F F E R E N T F R O M M A N A G E M E N T …L E A D E R S H I P I S D I F F E R E N T F R O M M A N A G E M E N T …

MANAGEMENTProduces Order & Consistency

LEADERSHIPProduces Change & Movementsy

Planning and Budgeting• Establish agendas• Set timetables

Establish directions• Create a vision• Clarify big pictures• Set timetables

• Allocate recources

Organizing and staffing

• Clarify big pictures• Set strategies

Aligning People• Provide structure• Make job placements• Establish rules and procedures

• Communicate goals• Seek commitment• Build teams and coalitions

Controlling and problem solving• Develop incentives• Generate creative solutions• Take corrective action

Motivating and Inspiring• Inspire and energize• Empower subordinates• Satisfy unmet needsTake corrective action Satisfy unmet needs


P U B L I C M A N A G E R S A N D T H E I M P O R T A N C E O F B E I N G P U B L I C M A N A G E R S A N D T H E I M P O R T A N C E O F B E I N G E A R N E S T ( T u r r i n i - V a l o t t i , 2 0 1 2 )

Leadership style Change in effort intentionsWorking for a leader who motivates employees urging

+0 3%them to achieve the result

(Task oriented leadership)+0,3%

(omitted)

Working for a leader who motivates employees being careful to personal relationships and to skills

development of employees+1,5%

(p=0 736)development of employees

(Relations oriented leadership) (p=0.736)

Working for a leader who motivates employees by supporting their creativity and developing their ideas (Change oriented leadership)

‐5,0% (p=0.247)

( g p)Working for a leader who motivates employees being

attentive to diversity / uniqueness of each and respecting gender differences

(Diversity oriented leadership)

+3,0% (p=0.419)

W ki f l d h ti t l bWorking for a leader who motivates employees by giving an example of honesty, promoting

compliance, punishing misbehavior (Integrity oriented leadership)

+8,0% * (p=0.057)

N=142N 142

The change management strategyg g gy

d hi b l d f i i iIn order to achieve better results, we need to focus on some priorities:

1. The right people doing fewer things while exposed to real or

simulated competition

2 Revolutionizing organizational models2. Revolutionizing organizational models

3. Turning bureaucrats into managers

4. Investing in soft organizational factors

5 The public sector and the private sector working hand in hand5. The public sector and the private sector working hand in hand

6. More policies, less politicization

Modernizing the public sector meets the expectations of both citizens and civil servants, they ask for changeso…

Thank you for the attention

[email protected]

reforming the public sector: how to make the difference

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