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DRIVING PERFORMANCE IN PUBLIC SERVICE BY DR YEMI KALE STATISTICIAN-GENERAL OF THE FEDERATION / CHIEF EXECUTIVE OFFICER NATIONAL BUREAU OF STATISTICS ABUJA 15 OCTOBER 2015 OUTLINE… Outline A. Introduction / concepts B. The public sector in Nigeria’s recent democratic experience C. Public sector contribution to growth D. Challenges to driving public sector performance E. Case study - Leading performance culture change at NBS F. Strategies for driving public sector performance G. Conclusion A. Background Economics deals with: Personnel Management focuses on: • the optimal allocation of productive resources • concerned with the management of human capital and how it relates to other factors of production in order to deliver some output • welfare of the human asset • human entity as a resource to be engaged and deployed in the production and delivery of goods or services • improving the productive capacity of human asset HUMAN ASSET IMPROVING OUTPUT PERFORMANCE A. Background • High-income countries and world class organisations place a premium on people • deliberate, specific, carefullythought, targeted policies to develop workforce • promoting knowledge • supporting research • rewarding innovation • problem-solving orientation • National Goal: global competitiveness • Corporate Goal: competitive advantage IMPROVING OUTPUT PERFORMANCE A. Background • Performance? • extent to which pre-determined objectives have been achieved using pre-determined inputs and working under conditions which may or may not be pre-determined. •relates to how the organisational entity is able to utilise its given input resources to achieve its pre-set goals • a ratio of input use to output attainment, under certain conditions • Important points to note: • inputs/resources • outputs/objectives/goals/results, • the context/conditions INPUT OUTPUT STRUCTURE OF ORGANISATION A. Background • These can be regarded as elements of an organisation’s structure STRUCTURE • An organisation’s structure influences the conduct of entities within it • The conduct of these entities determines the organisation’s overall performance and ability to achieve its objectives CONDUCT • This approach is known as the Structure-Conduct-Performance (SCP) paradigm* PERFORMANCE * SCP is typically used in the analysis of market structure and industrial A. Background • We can use the SCP paradigm to analyze, evaluate and understand the performance of the public sector (as an organisation) • The structure of the public service influences the conduct of public servants • The conduct of public servants in turn determines the overall performance of the public service Public Service Structure Public Servant Conduct Performance of Public Service B. The public sector in Nigeria’s recent democratic experience • What is the public service? • Service responsible for the public administration of a country. •Civil service – British equivalent • In Nigeria, the public service is made up of • the civil service – career staff whose appointment, promotion and discipline are under the Federal Civil Service Commission (FCSC) • other public servants – elected or appointed government officials whose remuneration is drawn from public treasury Public Service –Public administration Civil service in Nigeria – Federal Civil Service Commission Others elected/appointed by the government B. The public sector in Nigeria’s recent democratic experience o What is the relationship between public and private sector performance? Slow growth of public sector performance caused by socio-political and economic history events Public sector Private sector Era of liberalization, privatization and commercialization resulted in better capacity of private sector Illustrative Relationship between Private and Public Sector performance B. The public sector in Nigeria’s recent democratic experience Since 1960, various attempts have been made at trying to reform the public service • • • • • MORGAN COMMISSION 1963 ADEBO COMMISSION 1971 UDOJI COMMISSION 1972-1974 DOTUN PHILIPS PANEL 1985 CIVIL SERVICE REORGANIZATION DECREE 1988 • ALLISON AYIDA PANEL 1995 B. The public sector in Nigeria’s recent democratic experience Nigeria’s public sector has since been undergoing reforms to ensure efficiency and effectiveness. In September 2013, the Bureau of Public Service Reforms (BPSR) was established. The BPSR was established to ensure the reform of all Ministries, Departments and Agencies (MDAs) The Public Service Reform Team (PSRT) had the BPSR as its secretariat The PSRT also gave birth to the Oronsaye Committee B. The public sector in Nigeria’s recent democratic experience The PSRT produced two generic guidelines approved by the Federal Executive Council in 2006 for reform and restructuring of MDAs and Parastatals. This entailed cleaning up the staff headcount and payroll. Redesigning MDAs structure to between 4 and 8 departments and 2-4 divisions per department The Oronsaye Committee of the PSRT developed eight criteria for retirement of public servants- as part of clean up measures Performance Contract for heads of MDAs – Initiative driven by National Planning Commission between 2011-2014 C. Public sector contribution to growth What relationship can be drawn between the role of public sector on Nigeria’s growth & development? GDP = C + I + G + (X-M) Relative share of public and private sector expenditure in total GDP (2010-2014) 18% 16% 14% Final consumption expenditure of general government (Public sector) 12% 10% Gross Fixed Capital Formation (Private sector) 8% 6% 4% 2% 0% 2010 2011 2012 2013 2014 Gross Domestic Product (GDP)- Measure of total value of all final goods and services produced in an economy in one year. Performance of the public service – reflected in the performance of ‘G’ (government expenditure) Total final consumption of government accounted for 8.9% of total nominal GDP in 2010 It declined slightly to 8.3% in 2012 and 7.5% in 2014. C. Public sector contribution to growth Annual growth rate of nominal GDP, public expenditure and private investment Annual growth rate of GDP, government expenditure and gross capital formation (2011-2014) Annual Growth rate (%) 20.00 15.00 GDP at current purchasers' value 10.00 Gross Fixed Capital Formation (Private sector) 5.00 Final consumption expenditure of general government (Public sector) 0.00 2011 2012 2013 2014 -5.00 Trends in growth rate of both gross fixed capital formation (private sector expenditure) and government expenditure In 2011, Private sector investment grew by about 7.88%, and after a slower growth of 3.9% in 2012, it rose by 11.6% in 2013 and 18.4% in 2014. Public sector expenditure which grew faster than investment expenditure in 2011 (12%) declined by 2.6% in 2013 but recovered to 14.5% in 2014, still lower than the private sector rate. C. Public sector contribution to growth Public sector performance has been weaker In contribution to growth In delivery of public service In achieving national development objectives We can observe that the public sector (service) contribution to the economy still leaves much to be desired Public service, through the government, plays an important role beyond contributing directly to economic activity and growth Some of which are intangible and may therefore not be entirely captured by an indicator such as the GDP D. Challenges to driving performance in the public sector A Structure-Conduct-Performance Perspective STRUCTURE • Number of competing firms • cost of entry and exit • Number of products A useful tool for understanding and analysing the issues in the public service system is the structure-conduct-performance approach (SCP) The SCP approach enables us to link performance with its possible causes CONDUCT • strategies firms pursue to gain competitive advantage • Firm: competitive disadvantage, competitive parity, or sustained competitive advantage • Society: productive and allocative efficiency, PERFORMANCE employment, progress Structure – issues related to fundamental long lasting characteristics of public service Conduct – Behaviour attitudes of public servants and Performance – attainment of desirable outcomes favourable to public interest D. Challenges to driving performance in the public sector A modified Structure-Conduct-Performance (SCP) assessment for the Nigerian public service STRUCTURE CONDUCT PERFORMANCE • Entry and exit conditions: recruitment, consideration for merit and federal character principles; • Number of players involved: over 500 MDAs; multiple organs of governance (OHCSF, FCSC, MDAs) • Product characteristics: culture of individual work and performance orientation • Specialization: personnel training, planning and management system • Collective organisations: trade and labour unions with strong negotiation machinery • Rule of Law: sense of fairness/equity/justice • Due process: attitudes towards fiscal / financial responsibility • Transparency: Values of honesty, loyalty • Accountability: personal / professional responsibility • MDA: Achieving MDA mission / vision / objectives / mandates • National: contribution to national growth and development Structure – 500+ government agencies, many with overlapping functions. Conduct – Decline in social value systems – leading to lack of such values as honesty, transparency, and fiscal responsibility amongst civil servants Performance – direct result of poor attitude and conduct of public servants as determined by structure of service. E. Case study – Leading performance culture change at NBS The National Bureau of Statistics ; Who We Are and What We Do The National Bureau of Statistics (NBS) is the sole custodian of all official statistics in Nigeria. The Statistics Act 2007, which formally established the NBS, gives it powers to coordinate the National Statistical System NBS plays a vital role in informing national policy through the regular production of data on macroeconomic and social conditions in Nigeria E. Case study – Leading performance culture change at NBS 1928- - Statistics unit established by Colonial authorities 1957First Statistics Act was passed which gave powers to conduct censuses, publish statistical information and coordinate NSS 1988- 2004- Civil service reforms created further decentralization by establishing planning, research and statistics departments in all Federal Ministries Creation of the 5-year Statistical Master-plan to address the decline in the quality and quantity of official statistics 1958Country adopted a federal system of government with three regions, which led to decentralization of the statistical system; 1960NSO transferred to the Ministry of Finance and later to Ministry of Economic Development Now called FOS 2007Statistics Act was passed which formally established the current National Bureau of Statistics with powers to coordinate the National Statistical System 2010- Date The National Strategy for the Development of Statistics E. Case study – Leading performance culture change at NBS An Evaluation of the NBS Using The SCP paradigm Structure Conduct • NBS as at 2011 still had a very top-heavy nominal roll with age of the average staff well over 50. • Statistical funding largely donor-driven. • Direct budgetary funding for statistical production low, irregular and unpredictable. • Most staff were more concerned about their post-work life plans than statistical production • There was an undue focus on publishing expensive hard-copies statistical reports • Emphasis was given to data driven by donor demand than our core national statistics needs • structural issue of funding may also have led some officials to engage in private practice • Wrong attribution of NBS efforts to other institutions incl. CBN • Government officials were more comfortable citing World Bank, UNICEF and IMF figures than NBS numbers Performance • Near blacklisting by partners • Overall, the general public was always sceptical about any government figures New NBS Management Structure Reforms Improved Statistical Capacity E. Case study – Leading performance culture change at NBS What changed? Mostly structural issues! The new NBS management leadership sought to re-define the Bureau’s mission, clarify our objectives and identify our targets In early 2012, we prepared a Corporate Strategy and Implementation Plan (CSIP) as a working document that set out the year’s goals and targets Later served the purpose of a funding proposal and a basis for engaging in discussions with development partners and other collaborating entities provided a working document outlining the indicators against which we could track our performance at year-end. Data release calendar set up to enable our users anticipate and plan their schedules around our release dates Forced staff to work towards meeting data production deadlines. Useful conduct modification effect on both the data users as well as NBS staff E. Case study – Leading performance culture change at NBS Major Statistical outputs • CPI and Inflation report (Monthly) • Economic Review / Outlook (Annually) • General Household Survey (Annually) • GDP Report (Quarterly/Annually) • Foreign trade news (Quarterly/Annually) • Access to ICT Report (Annually) • Sectoral Wages & Emoluments (Annually) • Unemployment (Annually,>> Quarterly) • Gender statistics Newsletter (Quarterly) • National Literacy Survey (Annually) • Consumption pattern in Nigeria (Annually) 23 E. Case study – Leading performance culture change at NBS Nigeria’s performance in statistical capacity and timeliness of data reporting has continued to improve over the last four years. Trends as reported by the World Bank, for Nigeria and some comparator countries and regions as at 2014 Nigeria E. Case study – Leading performance culture change at NBS Nigeria Last year NBS had almost 6 million hits on its website and users downloaded NBS reports over 2 million times compared to less than 100,000 hits and less than 50,000 downloads four years ago. NBS also had by far the highest freedom of information requests and responses of any agency in Nigeria F. Driving public sector performance Strategies for human resource (HR)-driven performance improvement system Some possible changes to structure-related issues that can help to drive forward the performance of the public sector are: Recruitment, appointment and promotion. Discipline and anticorruption Improved performance in staff training Preference for foreign training institutions Performance tracking and evaluation Value-orientation Value orientation Performance tracking and Evaluation Recruitment, Appointment Addressing undue preference for Foreign Training Discipline Promotion Anti Corruption Staff Training F. Driving public sector performance Strategies for human resource (HR)-driven performance improvement system Recruitment, appointment and promotion. • Focused and deliberate efforts are necessary to revamp the quality of public servants • Recruitment needs to be more targeted and professionalized, rather than general • Need to develop appropriate targets for each individual staff Discipline and anti-corruption • Need to address the structure issues that drive civil servants towards misconduct. • Strong institutions are needed to ensure that the anti-corruption laws are applied equally and fairly every time and to everyone F. Driving public sector performance Strategies for human resource (HR)-driven performance improvement system Staff training • Training is a structural issue that directly influences the conduct of officials and certainly their performance in the delivery of public services • Catalyst for achieving superior performance in the delivery of public goods and services Adequate Staff training Enhances capacity building Addressing undue preference for foreign training institutions • This requires a change in orientation among officials • Staff training is to be linked to local institutions for the purpose of addressing local circumstances that can enhance service delivery • Promoting a culture of local solutions to local problems Improves public service performance F. Driving public sector performance Strategies for human resource (HR)-driven performance improvement system Performance tracking and evaluation • An important primary function of leadership • Comprehensive system that takes into account the structural factors towards modifying behaviour and conduct of officers Performance tracking and evaluation Increased Public Sector performance Value-orientation • Personal interests should be subverted in the interest of the public good • Re-orientation needs to be more pervasive within the civil service • Rewards and punishments Value orientation G. Summary of key points Progress is slow… Delivery of public services in Nigeria continues to improve, even if at a slower than preferred rate. …but Change is possible Recent efforts at institutionalising performance monitoring and evaluation reveal that the service can change given the right incentive system. Not just Conduct, but Structure It is not enough to change the conduct of public officials; the structurerelated issues in the service itself need to be addressed. Leadership matters Demand for better performance and improvement in public service delivery needs to come from within the service itself. The political leadership has made clear the need to do things differently, perform better and deliver results. Need to better track and evaluate performance both for personnel and institutions, incentive system that rewards performance and punishes otherwise THANK YOU HQ Address: National Bureau of Statistics Plot 762, Independence Avenue Central Business District Abuja. Email: [email protected] [email protected] Website :www.nigerianstat.gov.ng www.facebook.com/nigerianstatistics @nigerianstat 31