1. Agency Performance: A New Agenda
Moling Ryan
20 July 2009

2. 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

3. Coverage Agency sector in context Public Sector Performance
OECD Review and Task Force
Performance Frameworks
Structure for effective operation of Framework

4. 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

5. 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?

6. 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

7. 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”

8. 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

9. 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

10. 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

11. England and 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

12. 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

13. Scotland Scottish Legal Aid Board
Quite similar to England and 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

14. 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

15. 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