Agency Performance: A New Agenda Moling Ryan 20 July 2009

Context Public finances Public disquiet regarding political and public sector performance Public, media and political view of an excess of agencies Governance relationship difficulties Concerns regarding accountability Absence of consistent structure to key relationships Leadership and competence concerns

Coverage Agency sector in context Public Sector Performance OECD Review and Task Force Performance Frameworks Structure for effective operation of Framework

Agency Sector in Context 200 national agencies 12,300 staff in non-commercial agencies 38,500 in Civil Service 14,400 Gardai 10,900 Defence Forces 93,000 in education 34,000 in Local Authorities 111,800 in health services

Are public bodies and relevant stakeholders) clear as to their mandate(s)? To what extent is that mandate being fulfilled? Is the mandate still relevant? Is the public body the appropriate vehicle to implement Government policy? Is there political, Departmental and agency agreement re parameters of mandate? How effective are the governance arrangements?

Chief Executives’ submission to OECD Serious deficiencies in governance relationship Basis of relationship between Departments and agencies should be strategic Basis of evaluation should be on outputs and outcomes Should be regular review of mandates, covering: - ongoing relevance of mandate - extent to which mandate is being met - extent of consistency or overlap with other bodies - adequacy of resource provision - adequacy of governance and accountability - effectiveness of prevailing relationships

OECD Report “significant challenges in relation to governance, capacity and performance within agencies.” “the performance dialogue between departments and agencies is currently missing in Ireland, and with it, the link between societal and government goals”

OECD Recommendations on performance, governance and accountability Reinforce a performance culture by linking performance information and decision-making processes. Establish a performance dialogue between departments and agencies. Create a more coherent performance approach Improve quality of performance indicators and information

Task Force Report Depts should move away from an overemphasis on compliance and input controls and refocus on outputs and outcomes; greater transparency of organisational goals and performance; production of Output Statements by all public bodies; an integrated Annual Report covering input usage (expenditure) and output delivery with a focus on organisational achievements; more detailed performance reporting in terms of outputs and outcomes; and new forms of monitoring Performance Framework

International Experience Legal Services Agency NZ 3 Key Documents: Statement of Intent Letter of Expectations Memorandum of Understanding Engagement with Ministry of Justice Report to Minister every 4 months Chairperson and CEO meet Minister every month Ministry has Relationship Manager Management teams of Ministry and Agency meet every few months Ongoing engagement at various levels

England and Wales Legal Services Commission Organisational performance measured (by Ministry) annually against ministerial objectives and budget Objectives set through dialogue with Ministry Framework Document: sets out relationship between Ministry and LSC Signed by Secretary of State and Chairperson Sets out strategic control framework Management Statement: broad framework; overall aims and objectives; Rules and guidelines; conditions for payment of funds; means of accountability; relationship structures

Relationships Minister shall meet Chair and CEO formally to discuss performance and plans LSC’s performance re key objectives to be reported regularly Quarterly review meeting Key principles sought to be applied to relationship with relevant Directorate: shared values, mutual trust and respect, openness and transparency, no surprises, strategic, co-operation, close partnership working, collaborative, low maintenance, showing good intent

Scotland Scottish Legal Aid Board Quite similar to England and Wales: Management Statement and Financial memorandum governing relationship Communication and Relationship Chair and CEO meet Cabinet Secretary and DG twice a year Cabinet Secretary and DG invited to a Board meeting each year Regular contact with sponsor Department in ministry on planning, policy and performance Sponsor Dept reviews draft strategic plan against Government policy plans DG chairs Strategic management of Legal Aid Group

Measuring Organisational Performance How to measure good performance? Savings Improved processes Improved efficiency Greater effectiveness An increase in overall capacity/flexibility/resilience of the admin system as a whole (Pollitt) Outcomes are notoriously difficult to measure and attribute

A Framework for Dialogue on Performance A Framework Document developed centrally and used as a model across the Public Service. Key matters to be included: Government objectives, accountability structures and processes; roles of all parties; rationale for Agency; outcomes expected; KPIs, method of reviewing, reporting and monitoring Detailed agreement on means of engagement between Agency and Department Further development of accountability mechanisms (as per Task Force) Agreed values underpinning relationships Capability issue of staff addressed