THE NEW PUBLIC MANAGEMENT

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THE NEW PUBLIC MANAGEMENT
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Values of the New Public Management
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The New Public Management

• the motivation for change
• the (abstract) solution
• specific proposals for change from traditional
  public administration
• values
• management practices

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The New Public Management (Borins) Management
Practices

• providing high-quality services that citizens
  value
• adoption of private sector concepts of customer
  service
• increasing the autonomy of public managers
  (especially from central agency controls)
• focus on outcomes not process
• performance indicators/benchmarking
• measuring and rewarding organizations and
  individuals on whether they meet performance
  targets
• open-minded attitude about which public purposes
  should be performed by the private sector
• focus on core businesses
• privatization
• steering not rowing
• alternative service delivery
• appreciating the virtues of competition

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The New Public Management The Canadian Model

• distinguishing features pragmatic/practical and
  non-ideological
• providing high-quality services that citizens
  value
• focus on citizen-centred service, service
  standards, and service quality

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Treasury Board. Results for Canadians A
Management Framework for the Government of
Canada. 2000.
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Institute of Public Administration of Canada
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The New Public Management The Canadian Model

• distinguishing features pragmatic/practical and
  non-ideological
• providing high-quality services that citizens
  value
• focus on citizen-centred service, service
  standards, and service quality
• increasing the autonomy of public managers
  (especially from central agency controls)

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The New Public Management The Canadian Model

• distinguishing features pragmatic/practical and
  non-ideological
• providing high-quality services that citizens
  value
• focus on citizen-centred service, service
  standards, and service quality
• increasing the autonomy of public managers
  (especially from central agency controls)
• emphasized in terms of financial and
  adminsitrative controls less success in terms of
  human resource management

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The New Public Management The Canadian Model

• distinguishing features pragmatic/practical and
  non-ideological
• providing high-quality services that citizens
  value
• focus on citizen-centred service, service
  standards, and service quality
• increasing the autonomy of public managers
  (especially from central agency controls)
• emphasized in terms of financial and
  adminsitrative controls less success in terms of
  human resource management
• measuring and rewarding organizations and
  individuals on whether they meet performance
  targets

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The New Public Management The Canadian Model

• distinguishing features pragmatic/practical and
  non-ideological
• providing high-quality services that citizens
  value
• focus on citizen-centred service, service
  standards, and service quality
• increasing the autonomy of public managers
  (especially from central agency controls)
• emphasized in terms of financial and
  adminsitrative controls less success in terms of
  human resource management
• measuring and rewarding organizations and
  individuals on whether they meet performance
  targets
• less effective emphasis esp. on performance
  targets

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Institute of Public Administration of Canada
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The New Public Management The Canadian Model

• distinguishing features pragmatic/practical and
  non-ideological
• providing high-quality services that citizens
  value
• focus on citizen-centred service, service
  standards, and service quality
• increasing the autonomy of public managers
  (especially from central agency controls)
• emphasized in terms of financial and
  adminsitrative controls less success in terms of
  human resource management
• measuring and rewarding organizations and
  individuals on whether they meet performance
  targets
• less effective emphasis esp. on performance
  targets
• open-minded attitude about which public purposes
  should be performed by the private sector

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The New Public Management The Canadian Model

• distinguishing features pragmatic/practical and
  non-ideological
• providing high-quality services that citizens
  value
• focus on citizen-centred service, service
  standards, and service quality
• increasing the autonomy of public managers
  (especially from central agency controls)
• emphasized in terms of financial and
  adminsitrative controls less success in terms of
  human resource management
• measuring and rewarding organizations and
  individuals on whether they meet performance
  targets
• less effective emphasis esp. on performance
  targets
• open-minded attitude about which public purposes
  should be performed by the private sector
• the role of government can vary from leader, to
  catalyst, to partner

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The New Public Management The Canadian Model

• distinguishing features pragmatic/practical and
  non-ideological
• providing high-quality services that citizens
  value
• focus on citizen-centred service, service
  standards, and service quality
• increasing the autonomy of public managers
  (especially from central agency controls)
• emphasized in terms of financial and
  adminsitrative controls less success in terms of
  human resource management
• measuring and rewarding organizations and
  individuals on whether they meet performance
  targets
• less effective emphasis esp. on performance
  targets
• open-minded attitude about which public purposes
  should be performed by the private sector
• the role of government can vary from leader, to
  catalyst, to partner
• less emphasis on privatization more emphasis on
  alternative service delivery

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Alternative Service Delivery
Minor Change
Radical Change
User Fees
Co-location
Special Operating Agencies
Partnerships
Privatization
Single Window Delivery
New Technologies
Contracting Out
Devolution
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Alternative Service Delivery
Minor Change
Radical Change
User Fees
Co-location
Special Operating Agencies
Partnerships
Privatization
Single Window Delivery
New Technologies
Contracting Out
Devolution
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IPAC Award for Innovative Managment

• 2006 Sharing Governance Citizens, Partners,
  Networks
• 2002 Outside-In Changing Government to Meet
  Client Needs
• 1999 Measurement and Recognition
• 1992 Partnership Mangement

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The New Public Management The Canadian Model
(Summary)

• distinguishing features pragmatic/practical and
  non-ideological
• application of the model in Canada has been
  limited

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MidTerm Exam Grades
Q1 Q2 Q3 Q4 Q5 Q6 Exam
Highest 100 100 (x2) 90 (x2) 100 100 (x2) 100 97
gt90 10 16 11 21 20 15 12
gt80 20 32 17 37.5 33.3 48.4 22
Avg. 69.7 71.3 68.1 73.7 68.9 76.5 71.0
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The New Public Management

• basic description
• NPM and the context of the Sponsorship Scandal
• NPM and the Gomery Recommendations

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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

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The Context -- New Public Management

• the degree of reliance on private enterprise in
  the Sponsorship program

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The Context -- New Public Management

• One expert attribute 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 cultviate
  relationships with private-sector sponsorship
  companies using a different set of rules and
  standards. Gomery Report, Recommendations,
  46.

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The Context -- New Public Management

• the degree of reliance on private enterprise in
  the Sponsorship program
• lax attitude towards process

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The Context -- New Public Management

• One legal expert spoke of the Government
  advertising program as having no rules or
  dierction, 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.

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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.

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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. Gome
  ry Report, Recommendations, 35.

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The Context -- New Public Management

• the degree of reliance on private enterprise in
  the Sponsorship program
• lax attitude towards process
• the emphasis on results

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The Context -- New Public Management

• the degree of reliance on private enterprise in
  the Sponsorship program
• lax attitude towards process
• the emphasis on results
• Mr. Chretiens defence of the program

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The Context -- New Public Management

• the degree of reliance on private enterprise in
  the Sponsorship program
• lax attitude towards process
• the emphasis on results
• Mr. Chretiens 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.

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The Context -- New Public Management

• the degree of reliance on private enterprise in
  the Sponsorship program
• lax attitude towards process
• the emphasis on results
• Mr. Chretiens 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.
• indicative of general problems with performance
  reporting
• reporting problems
• attributing causation

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The New Public Management

• basic description
• NPM and the context of the Sponsorship Scandal
• NPM and the Gomery Recommendations

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Values of the New Public Management
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Context in which Change is/was Taking Place...

• globalization
• budgetary deficit
• information technology revolution
• less deferential public
• more aggressive media

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Some Thoughts on the Context

• When a culture of forbearance and forgiveness
  descends on Washington, please alert the FBI at
  once. It is evidence that someone has kidnapped
  or anaesthetized the entire legislative and
  judicial branches. James Q. Wilson
• Theres 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

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OBSTACLES TO REFORMThe Control Lobby

• who are they?
• opposition parties in Parliament
• The Auditor General
• the media
• link
• doubts about the adequacy of rules regulating
  bureaucratic behavior
• motives
• benign
• cynical

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REFORM VS. THE CONTROL LOBBY A Chronology

• the Glassco Commission (1960-1963)
• Refitting Bonaventure
• the Lambert Commission (1979)
• the McGrath Report (1985)
• PS2000 (1989)
• the Al-Mashat Affair (1991)
• the New Public Management (1992...)
• the HRDC Billion Dollar Boondoggle
• the Sponsorship Scandal

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Control Lobby Demands

• calls for greater personal bureaucratic
  accountability

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Calls for Greater Bureaucratic Accountability

• ministerial answerability
• lack of appropriate penalties
• artificiality of ministerial answerability
• tenure of ministers
• scope of ministerial knowledge/competence
• reactive (rather than proactive)
• example of HRDC scandal

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Calls for Greater Bureaucratic Accountability

• the myth and practice of ministerial
  responsibility
• the problems of ministerial answerability
• towards greater personal bureaucratic
  accountability

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Calls for Greater Bureaucratic Accountability

• the myth and practice of ministerial
  responsibility
• the problems of ministerial answerability
• towards greater personal bureaucratic
  accountability
• Freedom of Information

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Calls for Greater Bureaucratic Accountability

• the myth and practice of ministerial
  responsibility
• the problems of ministerial answerability
• towards greater personal bureaucratic
  accountability
• Freedom of Information
• bureaucratic accountability to parliamentary
  committees

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Control Lobby Demands

• calls for greater personal bureaucratic
  accountability
• calls for tighter controls on bureaucracy and
  stricter program rules

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Effects of Control Lobby Pressure

• centralization over decentralization
• flexibility becomes a risk
• risk for political officials
• risk for bureaucratic officials
• alternative service delivery poses risk
• contracts, partnerships
• risk-taking is strongly discouraged

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• 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 (199954)

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Effects of Control Lobby Demands

• centralization over decentralization
• flexibility becomes a political risk
• alternative service delivery poses risk
• contracts, partnerships
• risk-taking is strongly discouraged
• process accountability favoured over
  results-based accountability

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The New Public Management
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The NPM and the Gomery Recommendations
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The NPM and the Gomery Recommendations

• 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)

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The NPM and the Gomery Recommendations

• no need for new central controls
• greater accountability for existing rules
• Managers must continue to have the resonsibility
  for managing, but they should be more accountable
  for the use of thier 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 ones errors and misdeeds
  will be found out and exposed is a powerful
  encouragement to better performance and
  behaviour. (117)

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The NPM and the Gomery Recommendations

• no need for new central controls
• greater accountability for existing rules
• strengthen the Public Accounts Committee
• make DMs directly accountable to PAC for
  management

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The NPM and the Gomery Recommendations

• no need for new central controls
• greater accountability for existing rules
• culture change

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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. ... Fr
  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.

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CONCLUSIONSThe Virtues of Bureaucracy vs. The
Need for Reform

• valuing the virtues of bureaucracy
• impartiality/accountability
• can be misconstrued as red tape and inefficiency
• the vicious cycle of bureaucratic distrust

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The Virtues of Bureaucracy vs. The Need for Reform

• valuing the virtues of bureaucracy
• need to temper public expectations regarding
  bureaucratic performance
• the need for reform
• need to temper public expectations about
  accountability and raise public tolerance of risk
• 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