1. The New Public Management, the Sponsorship Scandal & the Gomery Inquiry

2. The New Public Management basic description basic description NPM and the context of the Sponsorship Scandal NPM and the context of the Sponsorship Scandal NPM and the Gomery Recommendations NPM and the Gomery Recommendations

3. The Context -- New Public Management the degree of reliance on private enterprise in the Sponsorship program the degree of reliance on private enterprise in the Sponsorship program

4. The Context -- New Public Management “One expert attributed the Sponsorship scanadal to excesses caused by what he called a “private business culture” or “entrepreneurialism” in the public service. This attitude has replaced a “public business” standards based on the public interest. In the Sponsorship Program, acccording to this theory, the Prime Minister and the Cabinet, with the best of intentions, encouraged the entrepreneurialism of certain public servants, who in turn stopped working for and by the rules of their department and cultviated relationships with private-sector sponsorship companies using a different set of rules and standards.” Gomery Report, Recommendations, 46. “One expert attributed the Sponsorship scanadal to excesses caused by what he called a “private business culture” or “entrepreneurialism” in the public service. This attitude has replaced a “public business” standards based on the public interest. In the Sponsorship Program, acccording to this theory, the Prime Minister and the Cabinet, with the best of intentions, encouraged the entrepreneurialism of certain public servants, who in turn stopped working for and by the rules of their department and cultviated relationships with private-sector sponsorship companies using a different set of rules and standards.” Gomery Report, Recommendations, 46.

5. The Context -- New Public Management the degree of reliance on private enterprise in the Sponsorship program the degree of reliance on private enterprise in the Sponsorship program lax attitude towards process lax attitude towards process

6. The Context -- New Public Management “One legal expert spoke of the Government advertising program as having no rules or direction, suggesting that a ‘shift to a rule-of-law culture’ would shelter advertising programs from corruption. Such a culture would shift the balance towards public servants’ loyalty to the rules of the public service rather than to the wishes of their political superiors.” Gomery Report, Recommendations, 46. “One legal expert spoke of the Government advertising program as having no rules or direction, suggesting that a ‘shift to a rule-of-law culture’ would shelter advertising programs from corruption. Such a culture would shift the balance towards public servants’ loyalty to the rules of the public service rather than to the wishes of their political superiors.” Gomery Report, Recommendations, 46.

7. The Context -- New Public Management “The management culture has changed dramatically over the past 20 years from solid record-keeping, accountability and dedication to the public service and loyalty according to our oath of office to Canada, to avoidance of record- keeping and accountability, and dedication of loyalty to the individuals who appointed you and can promote you.” Former Public Servant quoted in Gomery Report, Recommendations, 35. “The management culture has changed dramatically over the past 20 years from solid record-keeping, accountability and dedication to the public service and loyalty according to our oath of office to Canada, to avoidance of record- keeping and accountability, and dedication of loyalty to the individuals who appointed you and can promote you.” Former Public Servant quoted in Gomery Report, Recommendations, 35.

8. The Context -- New Public Management “...the preoccupation with policy and the resulting lack of emphasis on management had permitted the quality of departmental management to fall short of acceptable standards.” Gomery Report, Recommendations, 35. “...the preoccupation with policy and the resulting lack of emphasis on management had permitted the quality of departmental management to fall short of acceptable standards.” Gomery Report, Recommendations, 35.

9. The Context -- New Public Management the degree of reliance on private enterprise in the Sponsorship program the degree of reliance on private enterprise in the Sponsorship program lax attitude towards process lax attitude towards process the emphasis on results the emphasis on results

10. The Context -- New Public Management the degree of reliance on private enterprise in the Sponsorship program the degree of reliance on private enterprise in the Sponsorship program lax attitude towards process lax attitude towards process the emphasis on results the emphasis on results – Mr. Chretien’s defence of the program

11. The Context -- New Public Management the degree of reliance on private enterprise in the Sponsorship program the degree of reliance on private enterprise in the Sponsorship program lax attitude towards process lax attitude towards process the emphasis on results the emphasis on results – Mr. Chretien’s defence of the program “By the year of 2003, support for Canada in Quebec had increased substantially from where it was in the immediate aftermath of the Referendum. In the fall of 2003, 65 percent of Quebecers were satisfied with their federal government.” “By the year of 2003, support for Canada in Quebec had increased substantially from where it was in the immediate aftermath of the Referendum. In the fall of 2003, 65 percent of Quebecers were satisfied with their federal government.”

12. The Context -- New Public Management the degree of reliance on private enterprise in the Sponsorship program the degree of reliance on private enterprise in the Sponsorship program lax attitude towards process lax attitude towards process the emphasis on results the emphasis on results – Mr. Chretien’s defence of the program “By the year of 2003, support for Canada in Quebec had increased substantially from where it was in the immediate aftermath of the Referendum. In the fall of 2003, 65 percent of Quebecers were satisfied with their federal government.” “By the year of 2003, support for Canada in Quebec had increased substantially from where it was in the immediate aftermath of the Referendum. In the fall of 2003, 65 percent of Quebecers were satisfied with their federal government.” – indicative of general problems with performance reporting reporting problems reporting problems attributing causation attributing causation

13. The Context -- New Public Management the degree of reliance on private enterprise in the Sponsorship program the degree of reliance on private enterprise in the Sponsorship program lax attitude towards process lax attitude towards process the emphasis on results the emphasis on results

14. The Context -- New Public Management “...there are those who will say that the adoption of new public management principles, with their emphasis on service delivery, increased autonomy of public managers from central controls. rewarding individuals for performance, and cutting public programs and public servants, significantly contributed to the grants and contributions crisis.” David A. Good, The Politics of Public Management “...there are those who will say that the adoption of new public management principles, with their emphasis on service delivery, increased autonomy of public managers from central controls. rewarding individuals for performance, and cutting public programs and public servants, significantly contributed to the grants and contributions crisis.” David A. Good, The Politics of Public Management

15. The Context -- New Public Management the degree of reliance on private enterprise in the Sponsorship program the degree of reliance on private enterprise in the Sponsorship program lax attitude towards process lax attitude towards process the emphasis on results the emphasis on results

16. Values of the New Public Management

17. The New Public Management basic description basic description NPM and the context of the Sponsorship Scandal NPM and the context of the Sponsorship Scandal NPM and the Gomery Recommendations NPM and the Gomery Recommendations

19. Values of the New Public Management

20. Some Thoughts on the Context: “There’s a new emphasis in the federal government to encourage risk-taking among its employees. But the reality remains that when mistakes are made the individual is hoisted up the flagpole.” News report of TBS Study “There’s a new emphasis in the federal government to encourage risk-taking among its employees. But the reality remains that when mistakes are made the individual is hoisted up the flagpole.” News report of TBS Study WHY??? WHY???

21. Context in which Change is/was Taking Place... globalization globalization budgetary deficit budgetary deficit information technology revolution information technology revolution less deferential public less deferential public more aggressive media more aggressive media

22. OBSTACLES TO NPM REFORM: The “Control Lobby” who are they? who are they? – opposition parties in Parliament – The Auditor General – the media link to NPM link to NPM – doubts about the adequacy of rules regulating bureaucratic behavior – calls for greater bureaucratic accountability (process) motives motives benign benign cynical cynical

23. REFORM VS. THE CONTROL LOBBY: A Chronology the Glassco Commission (1960-1963) the Glassco Commission (1960-1963) Refitting Bonaventure Refitting Bonaventure the Lambert Commission (1979) the Lambert Commission (1979) the McGrath Report (1985) the McGrath Report (1985) PS2000 (1989) PS2000 (1989) the Al-Mashat Affair (1991) the Al-Mashat Affair (1991) the New Public Management (1992...) the New Public Management (1992...) the HRDC Billion Dollar Boondoggle the HRDC Billion Dollar Boondoggle the Sponsorship Scandal the Sponsorship Scandal

24. Control Lobby Demands calls for greater personal bureaucratic accountability calls for greater personal bureaucratic accountability – ministerial “answerability” lack of appropriate penalties lack of appropriate penalties artificiality of ministerial “answerability” artificiality of ministerial “answerability” – tenure of ministers – scope of ministerial knowledge/competence – reactive (rather than proactive) examples examples – Al-Mashat – HRDC scandal

25. Control Lobby Demands means to achieve greater personal bureaucratic accountability means to achieve greater personal bureaucratic accountability strengthened Freedom of Information strengthened Freedom of Information bureaucratic accountability to parliamentary committees bureaucratic accountability to parliamentary committees whistleblowing/internal disclosure of wrong-doing whistleblowing/internal disclosure of wrong-doing

26. Control Lobby Demands calls for greater personal bureaucratic accountability calls for greater personal bureaucratic accountability calls for tighter controls on bureaucracy and stricter program rules calls for tighter controls on bureaucracy and stricter program rules – centralization over decentralization – flexibility becomes a risk –risk for political officials –risk for bureaucratic officials – alternative service delivery poses risk contracts, partnerships contracts, partnerships – risk-taking is strongly discouraged – process accountability favoured over results-based accountability

27. “In the private sector, it does not matter much if you get it wrong 30 percent of the time so long as you can turn a profit at the end of the year and the bottom line remains healthy. In the public sector it does not matter much if you get it right 95 percent of the time because the focus will be on the 5 percent of the time you get it wrong.” Donald Savoie, Governing from the Centre (1999:54)

28. The New Public Management

29. The NPM and the Gomery Recommendations

31. no need for new central controls no need for new central controls – “...more red tape and more regulations than exist at present should not be recommended.” – re: new internal audit approach and establishment of CFOs in departments “...they could also add more red tape to government and have but limited impact on the political and adminstrative culture.” (26) “...they could also add more red tape to government and have but limited impact on the political and adminstrative culture.” (26)

32. The NPM and the Gomery Recommendations no need for new central controls no need for new central controls greater accountability for existing rules greater accountability for existing rules – “Managers must continue to have the resonsibility for managing, but they should be more accountable for the use of their power.” (10) – “They must know that they will be held accountable for any deficiency in their stewardship of the public purse.” (11) – “The knowledge that one’s errors and misdeeds will be found out and exposed is a powerful encouragement to better performance and behaviour.” (117)

33. The NPM and the Gomery Recommendations no need for new central controls no need for new central controls mechanisms for greater accountability for existing rules mechanisms for greater accountability for existing rules

34. The NPM and the Gomery Recommendations no need for new central controls no need for new central controls mechanisms for greater accountability for existing rules mechanisms for greater accountability for existing rules – strengthen the Public Accounts Committee

35. The NPM and the Gomery Recommendations no need for new central controls no need for new central controls mechanisms for greater accountability for existing rules mechanisms for greater accountability for existing rules – strengthen the Public Accounts Committee make DMs directly accountable to PAC for management make DMs directly accountable to PAC for management

36. The NPM and the Gomery Recommendations no need for new central controls no need for new central controls greater accountability for existing rules greater accountability for existing rules

37. The NPM and the Gomery Recommendations no need for new central controls no need for new central controls greater accountability for existing rules greater accountability for existing rules culture change culture change

38. The NPM and the Gomery Recommendations “...a change in administrative culture is needed to ensure that management in the Government of Canada reaches acceptable standards. [...] For the culture of the public service to change so that regularity, propriety, and good management in general are given a higher priority, the public service, and particularly those who are its administrative heads, must give management skills a higher priority. [...] The solution remains...to persuade the managers to focus on good management.” Gomery Report, Recommendations, 106-7. “...a change in administrative culture is needed to ensure that management in the Government of Canada reaches acceptable standards. [...] For the culture of the public service to change so that regularity, propriety, and good management in general are given a higher priority, the public service, and particularly those who are its administrative heads, must give management skills a higher priority. [...] The solution remains...to persuade the managers to focus on good management.” Gomery Report, Recommendations, 106-7.

39. The NPM and the Gomery Recommendations no need for new central controls no need for new central controls greater accountability for existing rules greater accountability for existing rules culture change culture change – new code of ethics

40. An External Culture Change? valuing the virtues of bureaucracy valuing the virtues of bureaucracy – need to temper public expectations regarding bureaucratic performance – impartiality/accountability can be misconstrued as red tape and inefficiency can be misconstrued as red tape and inefficiency – the vicious cycle of bureaucratic distrust the need for reform the need for reform – need to temper public expectations about accountability and raise public tolerance of risk Where to start? Where to start? – “Big answers to management constraints in government departments will not be possible until Parliament and the control lobby first change their ways.” Donald Savoie, 1999