1. Managing for Results in Lithuania 10 January 2014 Brussels, Belgium Office of the Government of Lithuania Head of Strategic Planning and Monitoring Unit Egle RIMKUTE

2. Plan Strategic Management Context and Framework Planning and monitoring for results Value for Money The way forward

3. STRATEGIC MANAGEMENT CONTEXT AND FRAMEWORK

4. Strategic management development I phase – introduction of SP, IA – 1999 – 2000: institutionalisation of SP across Govt – 2002: introduction of impact assessment II phase – consolidation of strategic planning, IA – 2003 – 2008: through Strategic planning committee III phase – rethinking efficiency and effectiveness – 2009 - 2011: strengthening of Government-wide- approach and leadership introduction of budget negotiations, evaluation, functional reviews, capability reviews

5. Meeting the crisis Administrative burden (over 250 planning documents, over 300 budget programmes) Lack of focus on results (over 200 PIs per ministry) Lack of political leadership and strategic thinking (no visible policy changes) Lack of efficiency information (incremental budget increases)

6. Tools to manage results - LT 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Impact assessment Strategic planning/ Government Priorities Monitoring Effectiveness Programme evaluation Impact Assessment (EU) Policy Management Tools Capability, function review CRISIS

7. PLANNING AND MONITORING FOR RESULTS

8. Strategic planning system NEW

9. http://www.facebook.com/Lietuva2030 http://www.lietuva2030.lt/ http://www.youtube.com/user/2030Lietuva At least 10 projects implemented annually through Government priorities At least 10 projects implemented annually through Government priorities

10. National Development Programme NDP priorities Smart EconomySmart SocietySmart Management Progressive and society orineted public management Economic growth friendly environment Integral and high added value oriented economy Education, Science and culture Active society LITHUANIA 2030 Strategy “Europe 2020” Progressive growthSustainable growthIntegral growth Culture Regional Development Health

11. Development programmes FILTER: Request for Government’s permission to prepare development programme SCOPE: Development programme has to cover at least one governance/public policy area TIMEFRAME: Medium-term (7-9 years) planning document to be approved by the Government OWNERSHIP: each programme has coordinator

12. Government-wide policies Two main cross-cutting documents: – Annual Government Priorities – Cross-cutting plans

13. Government priorities concept development Top-down approach Short list of priorities Manageable scope of new activities Financial envelope 2000-2003 Bottom-up approach Priorities include many policy areas and operational activities Lack of central coordination 2004-2008 Top-down and bottom-up approach Strong linkage with strategic plans Focus on new initiatives Strong coordination from CoG Monitoring and analysis 2009-…

14. Government/ minister Priorities

15. Planning Process Government sets priorities and directions MARCH Ministries prepare strategic plans and plan interventions to implement Government priorities APRIL - MAY Ministers, PM and minister of finance discuss during Budget Negotiations MAY - JUN GO finalises priority document OCTOBER Political debate Strategic sessions Political debate Strategic sessions and decision

16. Implementation and monitoring Quarterly reports: – Ministries submit performance information – GO analyses and summarises results Quarterly Cabinet discussions: – GO presents progress – Ministers discuss “Naming and shaming”: – Poor performance and implementation problems

17. Contents – Business development Tasks/ projectsDeadlineResponsible 1. Better business inspection: - Prepare and introduce questionnaires for business inspections - Implement “2 dates” rule to announce new business requirements III quarter II quarter Ministry of Economy - coordinator 2. Better business environment: - Introduce “Consult, do not punish” for first- year businesses - Ensure e-establishment for micro-businesses - Cut VAT registration from 7 to 3 wd III quarter I quarter Ministry of Ec. Ministry of Jus. Tax Insp. … Targets20112012 Business Environment Index (WB Doing Business) (LT position) 2017

18. Cross-Cutting Plans TIMEFRAME: Short-term (up to 3 years) planning document to be approved by the Government NECCESSITY: Horizontal planning document for the implementation of horizontal goals and objectives of: – Government priorities, complex problems – National Development programme or other development programmes – More than 3 appropriation managers involved in the implementation FILTER: prior Government permission INTEGRITY and FINANCIAL DISCIPLINE: – connected with strategic plan and budget (activities and projects exported and “duplicated” in budget programmes) – “frozen” funds (in IT budget execution and results monitoring system) SCOPE: 9 cross-cutting plans

19. Cross-cutting plans NDP plan “Regional Development” NDP plan “Culture” NDP plan “Health for All” Increase of employment EU Presidency Safety on the roads Information society Climate change Sports and sports for all

20. Strategic plan and budget STRATEGIC CHANGES AND PRIORITIES – MINISTER’S POLITICAL AGENDA MISSION PRIORITIES: -Projects -Indicators LEGISLATIVE INITIATIVES EFFICIENCY INITIATIVES STRATEGIC CHANGES AND PRIORITIES – MINISTER’S POLITICAL AGENDA MISSION PRIORITIES: -Projects -Indicators LEGISLATIVE INITIATIVES EFFICIENCY INITIATIVES STRATEGIC GOALS AND BUDGET PROGRAMMES - Impact indicators MINISTRY STRATEGY BUDGET PROGRAMME: -Goals€Result indicators -Objectives€Output indicators -Activities/ € projects STRATEGIC GOALS AND BUDGET PROGRAMMES - Impact indicators MINISTRY STRATEGY BUDGET PROGRAMME: -Goals€Result indicators -Objectives€Output indicators -Activities/ € projects COALITION AGREEMENT AMBITIONS MINISTRY STRATEGY AND OPERATIONS

21. Performance agreement Focus in Budget negotiation Strategic plan Government priorities Tasks/ projects Rezults Minister’s priorities Tasks/ projects Results Manager’s performance agreement Employees performance agreement Minister’s and PM’s agreement Incentives to change Manager’s and employees’ agreement Main tasks and results Cascading tasks and results

22. Results based budget cycle Analysis of situation and achieved results Annual reports Government annual report Government priorities Ministry strategic goals and outcomes Macroeconomic prognosis Strategic plans Budget Negotiations/ Performance agreements Draft Budget + Government priorities and Outcomes OPM and MF analyse Budget negotiations PM, MF, minister Strategic plan preparation Budget preparation January – March April – May May – June July – August Ministry strategic plans approved Consultation with PM October – November NEW

23. Monitoring information system (SIS) Aim: monitor and analyse achievement of goals and targets Scope: long, mid and short term documents: – Strategies, programmes, plans and Government priorities (about 60 planning documents) Target: goals, PIs (about 3500 Pis) and budget execution Frequency: quarterly Functionality: – Monitoring by traffic lights – Analysing performance and budget trends

24. Performance monitoring – IT solutions Benefits Linkages between different documents and their elements Performance indicators change dynamics Real time tracking possibilities Analysis of budget spending Performance indicators data visualization Time frames for measures Analytical tools Etc.

25. Monitoring Process

26. Govt priorities: Self-Assessment

27. MINISTRIES BENCHMARKING

28. Value for Money

29. Budget negotiations Negotiations between PM, MoF and line minister Draft strategic plan – the focus of discussions Focus on Government’s or minister’s priorities and results Ministries have to identify how their budget request reflects results GO role: advice priorities, results, efficiency – 2010-2011 focus on effectiveness and public spending cuts – 2012 – focus on results and effectiveness PrioritiesSP draftNegotiations SP corrections

30. Budget negotiations - process Assisted by 14 working groups (OG and MoF) Standardized analysis process (standard checklist) 14 meetings 14 position notes

31. Position note - example

32. Budget negotiations Government, minister priorities Results AppropriationsEfficiency/ cuts BUDGET NEGOTIATIONS Challenge – information!

33. Challenges Pressure to complete reforms within 1-2 years Will need several years to consolidate and test new approaches Future priorities will be: – ensuring policy management framework remains relevant to changing environment and political needs – increasing policy analysis and evaluation capacity within government – ensuring performance information is not ignored and informs planning

34. Thank you for your attention! Office of the Government of Lithuania Strategic Planning and Monitoring Unit Egle Rimkute egle.rimkute@lrv.lt egle.rimkute@yahoo.co.uk