Agency Performance A New Agenda Moling Ryan 20

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 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 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