Public Sector Modernisation How do governments learn? Alex Matheson Manager, Budgeting and Management Division Public Governance and Territorial Development OECD, Paris 05/12/2018

First Generation Reforms: Opened up comparative learning Across countries - and across disciplines Necessary response to affordability crisis Put public management on the political agenda 05/12/2018

But First Generation Reforms.. Were generally instrumentalist rather than systemic Sometimes had perverse impacts in longer run Analysis and evaluation was weak and short-term And new kinds of problems for governments emerged 05/12/2018

For New Generation Modernisation: Affordability remains critical for many countries But strategic adaptivity now top priority Need for better and longer run comparative information And for analytical tools which take account of national culture, analyse national risks, and guide modernisation priorities and sequence 05/12/2018

Key points Important to consider whole-of-government perspective “Reform” is not an objective in itself Administrative arrangements also about good governance Culture is critical to successful public management Important to deal with the real 05/12/2018

OECD “Best practice” was not best for developing countries Hierarchy of needs: constitutional  legal  compliance  performance Problems of sequence Problems of culture 05/12/2018

lessons from experience Learning Government The problem is: How to adapt to new internal and external circumstances while maintaining connectedness, continuity and values? The process is: Data information knowledge wisdom lessons from experience 05/12/2018

Learning strategies so far fall short Best practices Training and development Blanket “reform” programmes Excessive attention to formality and process (as opposed to actual behaviour) 05/12/2018

Possible learning strategies Leadership Performance orientation Knowledge management Accountability and Transparency Attention to culture 05/12/2018

OECD work in progress Governing for performance What is happening to civil services The learning government The changing role of the centre 05/12/2018

Governing for performance Assist members... produce strategy for result-oriented culture in national context assign costs to plans and results better integrate evaluation and impact information in decision-making assess potential/ limits of target setting, measurement & differentiated incentives for organisations/ individuals 05/12/2018

KNOWLEDGE MANAGEMENT SURVEY a broad definition of KM: Organisational arrangements Personnel development and management of skills Transfer of competencies Managerial changes and incentives for staff to share knowledge A large interest in the survey: 20 countries 132 ministries/departments/agencies of central government (84% participation rate of pre-identified organisations) High-quality responses 05/12/2018

A more vertical hierarchy--at least in theory KM AS A MODERNISATION CHALLENGE: WHAT IS DIFFERENT IN THE PUBLIC SECTOR? Weaknesses A more vertical hierarchy--at least in theory Difficult focus on outcomes Large extent of tacitness in knowledge and practice Resistance to change Strengths Traditionally, a more knowledge-intensive business The effect of critical mass Traditional transparency Whole of government perspective Low risk in sharing knowledge 05/12/2018

KM HAS BECOME A REALITY IN TERMS OF PRIORITY 05/12/2018

ORGANISATIONAL CHANGES ARE TAKING PLACE  INTERNALLY 05/12/2018

Results of the KM indicator by country and sector 05/12/2018

REAL CHANGES ARE TAKING PLACE  EXTERNALLY 05/12/2018

THE RESULTS OF KM STRATEGIES ARE NOT ENTIRELY SATISFACTORY 73.1% say their organisation has been very/fairly successful with KM practices KM practices have been successful/very successful at improving work efficiency and productivity: 63.2%; at releasing information more rapidly: 75,4% at improving transparency 56.4% at improving working relations and sharing of knowledge with other ministries: 51.9% But, NOT at promoting lifelong learning: 27.9% at making organisations attractive to job seekers 36% making up for loss of knowledge: 34.2% increasing horizontality and decentralisation of authority: 40.8% minimising duplication of efforts between divisions and directorates: 37.5% 05/12/2018

The learning government challenge New capacities to understand own system Better thinking about sequence Better information on behaviour and culture Systemic and better connected interventions 05/12/2018