Transcript Richard E. Ndubai - Performance Management Division
Performance Contracts in the Management of the Public Service in Kenya
Presentation to Officials of the Government of India by
Richard E. Ndubai, CBS,MBS,OGW
Permanent Secretary, Performance Contracting (Office of the Prime Minister) Republic of Kenya
4/29/2020 New Delhi, 26 August, 2011 1 1
PRESENTATIONS I. Performance Contracting in Kenya; II.Citizens’ Service Charters III.Performance Appraisal Systems
Scope of Presentation
• • • • •
Background to Introduction of PCs Overview of PSR in Kenya What is a Performance Contract?
Citizens’ Service Charter Experiences, Challenges Lessons &
Introduction
&
Background
•
In 2003
new Government ► inherited Public Service • Mainstream Civil Service with 32 ministries; • 130 Public Enterprises; • • 175 Local Authorities Staff strength of about 700,000
Introduction & Background
Did not have:
1. a clear mission; 2. a shared vision; 3. none of the ministries had a strategic plan; 4. over 70% of state corps, and all 175 local authorities did not have strategic plans;
5.
no clear strategic direction;
An economy growing at 0.4%!
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Introduction & Background
Public service:
a.
regarded corporate governance as a private sector affair; b. determination of performance was based carried out; inefficiency; d. Lost public trust, and resources!
of lethargy and
Introduction and Background
• • In the 2004/05 FY, the Treasury released KShs299.065billion to all ministries. Out of this, FY; some KShs34.2billion or 11.4% was however returned unutilised by the end of the 14 Ministries were not able to spend large portions of the funds given by Treasury in 2004/05. They therefore surrendered back the indicated proportion of their funding to Treasury:
4.
5.
6.
7.
8.
MINISTERIAL EXPENDITURES 2004/2005 (KSH MILLION) No Ministry/Dept
1 2.
3.
National assembly DPM
Actual Exchequer Funds released
5,500 2,157 Planning and Natl. Devpmt. 2,138
Actual Utilised
4,375 1,306 1,471
% Actual Utilised 80 61 69 Actual Returned
1,125 851 667 9.
Regional Devpmt.
Agriculture Local Government Transport Justice and Const. Affairs Fisheries and Livestock 833 6,570 7,240 4,652 2,472 3,332 492 3,084 3,954 3,525 992 2,095
59 58 55 76 40 63
341 2,766 3,286 1,127 1,480 1,236 10. Co-operative Dev.
2,044 625
31
1,419
% Actual Returned 20 39 31 41 42 45 24 60 37 69
11. East African Corporation 12 13 State Law Office Trade & Industry 14. Information and Comm.
528 547 2,564 670 203 128 2,035 250
38 23 79 37
325 419 529 420
62 77 21 63
Introduction & Background
Public sector had therefore become part of the bigger problem!
a drain on the exchequer for financial support in form of grants and loans, Impediment to: economic growth recovery of the economy
Introduction & Background Govt. quickly realized that problem emanated from:
– Inefficient exploitation and use of public resources; – Unresponsive service delivery culture;
Introduction and Background
∴
Need to reorient public sector
management by introducing new
systems &
adopting best international practices to help to: a. Reengineer operations to keep ahead of growing public demand for better services;
Introduction and Background
b. Reposition country on the growth trajectory; c. Create competitive advantage for the country d. Restore trust in Government, & dignity of the public service;
Key Issue?
•
Performance Improvement
Issue – establishing a performance management system; • System which focuses on appropriate leadership and development of “people” capacities; 4/29/2020 13
People & Institutions?
“ an empowered organization is one in which individuals have the knowledge, skill, desire opportunity to personally succeed in a way that leads to organizational success”
Stephen Covey
and 4/29/2020 14
People, Institutions, Systems?
But Why “System”?
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Determinants of Performance
People 80% 20%
Leader
R E S T
Determinants of Performance
Economic Growth
% 5 4 1 0 3 2 8 7 6 0,4 2002 2,8 2003 4,3 2004 5,8 6,3 2005 Year 2006 7,1 2007 1,7 2008 2,6 2009 5,6 2010
Stark Realities
A. Efficiency of the public service defines and informs the efficiency of all other sectors of an economy.
. “The quality of an effective Government can not be lower than that of its clients – specifically the private sector” ► Malaysian Prime Minister, Mahathir Mohamad,
Stark Realities
B. Obstacles to performance problems do not lie necessarily with comparative disadvantage in resource endowment; not even with funding deficits; but, because of: i). Hanging onto the same/old ways of doing things and of solving problems; ► you cannot expect different results by persistently applying the same techniques to solve problems 4/29/2020 20
Stark Realities
C . a
n agency requires a clear strategic direction to achieve
its objectives.
“If you do not know where you are
going, any road will take you
there”.
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22
Stark Realities
4/29/2020 D. that Government Will be Improved Only When We: i. recognize that
managed
and
we do
produce outputs and that what we do can be
improved ;
measured,
ii. discover that we have with all the rights and privileges that the word
“customer” real customers
bestows, and that the satisfaction of our customers is absolutely essential to our success.
, 4/29/2020 22
Stark Realities
F.
Countries in the world can be classified according to their ability to implement policies and programs; Implementation depends on effective follow Effectiveness of follow-up and monitoring depends on quality and not quantity of M&E (Effective evaluation requires explicit rankings).
Stark Realities
• Foundation of competitive advantage for a country is Public Service
Efficiency;
Q why Public Service Efficiency?
Q how do we create, develop & sustain public service efficiency?
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WHY PUBLIC SERVICE EFFICIENCY?
To Fulfill Obligations to Citizen:
1.deliver top quality, affordable, accessible & timely services; 2.efficient exploitation & utilization of public resources; 3.engender
accountability public resources; & transparency in the utilization of 4/29/2020
WHY PUBLIC SERVICE EFFICIENCY?
• • • 4. create enabling environment for economic & social activity; 5. Ultimate: fast-track economic growth; create wealth and employment improve citizen welfare; 4/29/2020 26
Public Sector Reforms in Kenya
• • In Kenya PSR began soon after independence and: aimed at improving the quality of the lives of its citizens; targeted at elimination of poverty, disease, hunger and ignorance, achieving social justice, human dignity and economic welfare for all.
Public Sector Reforms in Kenya
• exploring new pathways to promoting good governance and sustainable democracy through the adoption and implementation of pro-change policies:
Public Sector Reforms in Kenya
Thrust:
1) Reorganizing the governance machinery to achieve higher levels of competence, transparency and accountability, and to minimize waste in government spending; 2) Inculcating ethics and new value systems of honesty, probity, patriotism and respect for the nation’s diversity;
Public Sector Reforms in Kenya
3) Enlisting the support of stakeholders from the private and other sectors, to participate in growing the national economy; 4) Changing the role of the state from that of a sole provider of employment and services, to the new role of creating an enabling environment for wealth and employment creation;
Public Sector Reforms in Kenya
5) Creating a lean, efficient and working government, and, by curtailing wasteful public expenditure, freeing resources to fund development programs and people issues;
• 5-year strategic plan Strategy for Wealth and Employment Creation, (ERS). ► Economic Recovery The strategy recommended sweeping reforms in the management of the public service observing that, “…the problems attributed to the many state corporations arise from the lack of clear performance contracts that facilitate the monitoring of the performance of the CEOs appointed to manage the corporations” 32
Reform Strategies
ERS ► Reorientation of public sector management by: Accelerating ministerial rationalization and developing strategic plans for ministries/departments & downstream institutions; Developing, institutionalizing performance based management practices in the public service; introducing and
Reforms & Performance Contracting
Govt. therefore introduced the following initiatives: Required public institutions to develop strategic plans by 2004; Introduced reforms to jumpstart management of the public service; Empowered citizens to demand excellent service as an entitlement.
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Reforms & Performance Contracting
Adopted a two-pronged reforms approach; Capacity Building (tooling & re-tooling) & Behavior Change Shift focus from Processes/Activities to results, outputs & outcomes
Performance Contracts
This approach gave rise to the Performance 4/29/2020 Contract 35
PERFORMANCE OF MINISTRIES
0,42 0,42 0,41 0,41 0,40 0,40 0,39 0,39 0,38 0,38 0,37 0,37 2005/06 2006/07 2007/08
Period
2008/09 2009/10
0,43 0,42 0,41 0,40 0,39 0,38 0,37 0,36 2005/06
PERFORMANCE OF STATE CORPORATIONS
2006/07 2007/08
Period
2008/09 2009/10
PERFORMANCE OF LOCAL AUTHORITIES
0,34 0,34 0,33 0,33 0,32 0,32 0,31 0,31 0,30 0,30 0,29 2006/07 2007/08
Period
2008/09 2009/10
PERFORMANCE OF TERTIARY INSTITUTIONS
0,39 0,39 0,38 0,38 0,37 0,37 0,36 2008/09
Period
2009/10
So, What is a Performance Contract (PC)?
4/29/2020 • ► a range of management tools used to
define
results; between parties to enable them achieve mutually agreed ∴ 4/29/2020 40
What is a PC?
4/29/2020 •
► organizes & defines tasks so management is able to perform them systematically, purposefully & with reasonable probability of achievement.
Makes it possible to measure: – Performance of a public institution; – Performance of manager; – Performance of the government 41 4/29/2020 41
What is a PC?
• Privatizing the public sector style of management for purpose of: – – Retaining for public benefit, or Disposing at higher return
Performance Contract
Key objectives are to:
1. Increase efficiency & productivity in public sector; 2. ensure maximum yield to the citizen, on the tax shilling; 3. ensure that performance and results link with stakeholder expectations; 4. Create Global Competitiveness for a country; 4/29/2020 43
Performance Contract
5.Link the benefits of economic growth to the grass root levels; 6.Increase Customer (Public) Satisfaction with Government Services; 7.Build and sustain trust in Government; 8.Create wealth and improve the quality of lives of citizens. 9. Link reward to measurable performance in public service; 4/29/2020 44
10. cascade national policy priorities to
public agencies for implementation VISION 2030 MINISTERIAL MANDATE MISSION Strategic Objectives Performance Criteria Performance Targets
Performance Contract
11. ensure linkage between planning, budgeting and results; 12. enable monitoring and measurement of performance; 13. enhance service delivery
Performance Contracts
PC process has endured 6 cycles with distinct impact on performance of the economy; 7 th cycle PCs preparing for evaluation; Currently, a total of 470 public institutions on board; 4/29/2020 47
Performance Evaluation
• • • The measurement of the extent to which public agencies achieve negotiated performance targets; established using the equation below:
Managerial Performance = Agency Performance ± Exogenous Factors
Performance Evaluation
• • • • • Excellent: achievement ≥ 30% above the agreed performance target, Very Good:Achievement between 100% and 130% of the performance target in the signed PC;
Good:
Achievement between 70% and 100% of performance target in the signed PC; • •
Fair:
Achievement between 50% and 70% of the target in the signed PC;
Poor:
Achievement between 0% and 50% of the target in the signed PC.
Experiences, Lessons & Challenges Learnt
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I. Initial Impact on Performance: 1st Cycle PCs
16 largely commercial pilot state corporations signed PCs on 1 st October 2004; Generation of Pre-tax profits
Performan ce 2003/04
Evaluation Results
Target Performance (KShs mil.) Achievement (KShs mil.) % Change over Previous yr % Change over Target 2,432.376 8,181.427
9,300.598
382.37% 13.68%
PERFOMANCE OF PILOT CORPORATIONS
4/29/2020 4000 3000 2000 1000 0 C SC EA PC C -1000 IC D C KI E KB C KP C KP A KP LC KU C K W A L NHC N O C K TE LK O M -2000 -3000
STATE CORPORATION
ACTUAL(03/04) TARGET ACHIEVED
Performance Contract
• Performance Criteria 4/29/2020 The PC focuses on 6 management perspectives which are assigned varying weights: 1. Finance & Stewardship 2. Service Delivery 3. Non-Financial 4. Operations 5. Dynamic/Qualitative 6. Corruption Eradication 53
CRITERIA CATEGORY * UNIT A
Financial & Stewardship
Compliance with set budgetary levels
Cost reduction/Savings A-in-A Utilization of Allocated Funds
Development index (DExp/RE)
Debt equity ratio
Weight Sub total B
Service Delivery
Implementation of Service delivery Charters Customer Satisfaction Service Delivery Innovations
C D E Weights Sub total
Non-Financial
Compliance with strategic plan
Disposal of idle assets ISO Certification Corruption eradication Prevention of HIV infections Statutory obligations Weights Sub total Operations
Outputs: X Y Z Project implementation: - Timeliness - Quality - Relevance - Cost efficiency - Completion Rate Fulfilment of Performance Contract Commitments to State Corporations Treasury Representation in negotiation*
Weights Sub total
Dynamic/Qualitative; • Organisational Capacity: - Skills Development - Automation (IT) - Work Environment (Baseline Survey / Implementation) Employee satisfaction Repair Maintenance Safety measures Submission of Pensions Documents to Pensions Dept Research and Development Prevention of Drug and Substance Abuse
Weights Sub total % % % No.
% % % % % % KShs KShs % % %
Qty, etc % % % % %
% % % % Time / % % % % % Months % % 20 30 10 25 15 WT Current Status Target Excellent (1.00 – 1.49) CRITERION VALUES Very Good (1.50 – 2.49) Good (2.50 – 3.49) Fair (3.50 – 3.59) Poor (3.60 – 5.00) Achievement Raw score Weighted score
54
Citizens’ Service Charters
Enhanced satisfaction with public services through: i. implementation of Citizen’ Service Charters and ii. the requirement to carry out annual Customer Satisfaction Surveys; 55
Citizens’ Service Charter?
Statement prepared by a public agency outlining the quality, quantity and nature of public service that the citizens expect from the agency.
►
- the standard of service provided, -how users may seek redress if they are
Services Rendered
Enquiries (customer care desk) Provision of technical advice ( eg subdivision, charge, succession, transfer, caution etc) Issuance of title through adjudication, settlement or succession (In the case of issuance of title after sale, a valuation report will be required) Assessment of stamp duty Valuation for stamp duty Stamping of documents Registration of documents: Transfers, Charges New grants Other documents
DISTRICT LANDS OFFICE ► SERVICE DELIVERY CHARTER Requirements
None.
None.
Transfer document, Pin number, 2 sets of Passport size photographs for each party Original ID A valuation report None.
None.
None.
Transfer document, Pin number, 2 sets of Passport size photographs for each party Original ID None.
Charges
Free Free Ksh 125 per title Free Free Free Ksh 250 Ksh 250 Ksh 250
Time Frame
10 min 30 min 2 days 5 days 30 min 3 days 1/2 day 2 days 2 days 1 day
For the same transaction, customers will be required to submit only one set of documents
Issuance of search certificate Determination of boundary disputes Review of caution Attendance to court Attestations Approval of subdivision schemes Approval of building plans Issuance of consent to transfer/ charge/ lease/let Comments on applications for extension of lease/user/subdivisions/ amalgamations Response to correspondence None.
Attendance by all parties.
Attendance by all parties None.
None.
Prior approval by other relevant authorities.
Prior approval by other relevant authorities.
Confirmation of compliance with conditions of title. Prior approval by other relevant authorities.
None Ksh 100 Ksh 1,250 Ksh 750 Free Ksh 400 Ksh 125 per plot Minimum Ksh 750 Ksh 250 per plot Free Free 1 hour 2 weeks 1 day As summoned 30 min 2 days 2 days 2 days 2 days
“COMMITMENT TO COURTESY AND EXCELLENCE IN SERVICE DELIVERY”
Any service that does not conform to the above standards or any officer who does not live up to commitment to courtesy and excellence in service delivery should be reported to:
the District Land Officer/Registrar or the District Commissioner, and/or the Chief Executive Officer, Public Complaints Standing Committee (Ombudsman), Tel: 240337/224029/0722970604. The District land office is committed to efficient and effective land registration and management.
IT IS YOUR RIGHT TO DEMAND EFFICIENT SERVICE
“Huduma Bora ni Haki Yako”
MINISTRY OF MEDICAL SERVICES CITIZENS’ SERVICE CHARTER FOR DELIVERY OF MEDICAL SERVICES FOR DISTRICT HOSPITALS This hospital and its staff are committed to provide high quality health care services to all our patients/clients with dignity, professionalism and within the shortest time possible. Services rendered
1. Attendance and Customer Care Desk / Enquiries 2. Registration Card in: Provincial Hospital District Hospital Sub-District Hospital 3. Consultations: Adults / Above 13 years Children above 5 years Children below 5 years 4. Dispensing medicines / drugs 5. Vaccinations / Immunizations 6. Laboratory Services 7. X-Ray Services 8. Admissions: Emergency Non Emergency 9. Surgeries: Emergency Non emergency 10. Mortuary Services Body storage Embalming Postmortems Collection of Body 11. Payment for hospital charges
Patient / Client Requirements
Cooperation from patient / client / relatives - Patient’s particulars and - Fees - Consultation letter, - Registration card and - Payment receipt - Consultation letter and - Registration card - Prescription and Payment receipt Immunization card Investigation / Test Request Form and Payment receipt Request Form and Payment receipt - Patient’s file and card - Patient’s file and card - Cooperation from relatives - Card , File and Consent - Card, File, Consent and Payment Receipt - Cooperation from relatives - Payment receipt / Cooperation - Fresh body / Payment receipt - Police / Relatives / Concerned persons - Payment receipt
User Charges (Kshs)
Free - 50 Kshs - 50 Kshs - 20 Kshs - 50 Kshs - 30 Kshs - Free - Free to 30 to 200 Kshs - Free - 50 to 400 Kshs - 200 to 500 Kshs - 100 Kshs per day - Payable after treatment - Payable after treatment - 3,000 Kshs payable after treatment - 3,000 Kshs payable before treatment - 200 Kshs per day - 500 Kshs - 200 to 2500 Kshs - Free
Timeliness
Up to 5 Minutes Up to 30 Minutes Up to 20 Minutes Up to 20 Minutes Up to 20 Minutes Up to 30 Minutes Up to 20 Minutes -Up to 20 Minutes -Up to 10 Minutes -Up to 30 Minutes -Up to 24 hours -Up to 1 day -Up to 2 hours -Up to 1 hour -A prescription - Investigation / Test Request form - Invoice (for inpatient, mortuary and other services) - Free -Up to 30 Minutes
FREE SERVICES: Child birth in Health Centers & Dispensaries, Health Services to Children Under 5 years, Treatment for Malaria, TB, HIV/AIDS and Epidemics Hospital Administrators must ensure full security and accountability for all medicines, equipment, commodities, health information and government revenue collected.
WE ARE COMMITTED TO COURTESY AND EXCELLENCE IN SERVICE DELIVERY Any service that does not conform to the above standards or an officer who does not live up to the commitment to courtesy and excellence in service delivery should be reported to the Out-Patient Department Nursing Officer In-Charge or any hospital administrator. EMERGENCY / AMBULANCE NUMBERS
Emails: HUDUMA BORA NI HAKI YAKO Ministry of Medical Services Headquarters Contacts
P.o Box 30016, Nairobi, Tel: 020 2717077, Emergency calls: 0735 984 498, 0725 733 650
Other achievements
• Enhanced PPPs thru participation in negotiation, evaluation and tracking implementation of service charters; • Involvement of public in decision making thru “target sector hearings
”
Other achievements
• Created results; public awareness of performance of public service & utilization of tax shillings thru public ranking & announcement of • Driving implementation of Kenya’s Vision 2030 flagship projects;
Other achievements…
Bagged in international awards in 2007:
1. United Nations Public Service Award in 1 st category of: 2.
transparency accountability, and responsiveness in service delivery Classified among top 20 service delivery innovations in the world in transforming government, by the Ash Institute for Democratic Governance & Innovation, at Harvard University, in 2007.
Other achievements
• Overall Winner in All Africa Public
Sector Innovation Awards 2010 in
“Innovation in Systems and Processes of
sponsored by the Conference of African Ministers of Public/Civil Service under AU.
Governance”,
Other achievements
• Changed public service laid back culture of focusing on processes & procedures to focusing on outputs and outcomes; • Created ability to base reward for work on measurable performance; • Enhanced accountability for results at all levels of public service;
Other achievements
• National Customer Satisfaction Baseline Survey completed early 2010: • Covered large sample in all districts in Kenya;
Other achievement
• (67% in 2005) which used the Common – Elements of CMT: – – – – –
Access to service Quality of service; Timeliness; Courtesy; Affordability
Experiences/Lessons
•
Replicability:
At in institutional level system has been easily adaptable in both public & private sector & in institutions of differing mandates and sizes; At state level, a number of countries are in the process of implementing it or slight variations of it, or called to learn the system
Experiences/Lessons
•
Ease of Application:
System is easy to implement and to cascade to lowest levels. The evaluation methodology is fully automated and therefore easy to use at any level; • PC Matrix attracts comprehension at all levels and types of organizations.
Experiences/Lessons
• •
Scale of Application:
system can be expanded to cover all manner of institutions.
• Currently covers 470 institutions from 16 in 2004: Preparing to extend to Parliament & Judiciary;
Challen
ges
1. Need for political ownership and support at the highest political & bureaucratic levels; 2.
Low implementation capability 3. Transfer/removal of staff in middle of contract; 4. Mergers/splits of ministries & attendant problems;
Challen
ges
5) Legal obstacles initially; 6) Failure to benchmark targets or uncompetitive benchmarks because of lack of standard sector benchmarks 7) Fluctuations in committed funding; 8) Poor grasp of strategic management process;
Challen
ges
9) Poor linkage between budgeting and target setting; planning, 10) Lack of comprehensive incentive/sanctions system; 11) Incomplete integration ► & Judiciary still not on board.
Legislature
Approaches to the Challenges
a. Securing political & bureaucratic support at the highest levels; b. Issuing clear guidelines; c. Reviewing guidelines continuously to incorporate experiences, performance management; lessons learnt and new developments in
Approaches to the Challenges
d. Building capacities in: – – – – – Strategic management process; Results Based Management; Implementation of PCs; Performance evaluation methodology; Reporting relationships;
Approaches to the Challenges
e. Creating broad ownership of process thru: i. cascading to all institutional levels; ii. Bringing other arms of govt on board; iii. Public education on implications of performance improvement on service delivery;
Approaches to the Challenges
f.Developed Sector Performance Standards based on international best
practices
, to inform management practices in: 4/29/2020 planning budgeting developing strategic plans identifying performance indicators, and setting performance targets Linking performance with public aspirations.
Sustaining the Process
g. Continuous training: i. Nationwide program covered over 30,000 ii. Laws for state corps and local authorities iii. Policy pronouncements & enforcement directives iv. Public demand for improved services & accountability v. Performance Management Bill in draft
Way Forward
• • Securing general support of the private sector and the media for govt. reform effort Seeking strategic partnerships with the private & other sectors in disseminating information charters.
on, and tracking implementation of service delivery
Way Forward
• • Operationalizing monitoring of performance and project implementation; real time on-line Evaluation of performance is currently automated. The next phase is to make the evaluation fully web-based, to minimize direct interface with managers to focus on managing.
institutional management. This will allow more time for
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END THANK YOU
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