Improving performance from the Center of Government The case of Pernambuco (Brazil)
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1 Improving performance from the Center of Government The case of Pernambuco (Brazil) 7 th Annual Public Performance Measurement and Repor8ng Conference Rutgers University September 19, 2014
2 Structure of the presenta6on 1. What is the Center of Government (CoG) and why it ma>ers Defini8on, increased relevance, Func8ons, Structure 2. The management model of the state of Pernambuco (Brazil) Ins8tu8onal innova8ons, Strategic Management, Monitoring and improving performance 3. Lessons learned for other subna6onal governments Insights and opportuni8es for improvement 2
3 But first why study the case of Pernambuco? significant improvements in performance and results Homicides per 100,000 inhabitants Management Model Also improvements (although not as strong) in health and educa8on outcomes. 9 th among Brazilian states in economic growth (compared to 24 th in ). Expanded capaci8es for public investment and the comple8on of projects. Source: Alessandro, Lafuente and Shostak (forthcoming) 3
4 1. What is the Center of Government (CoG) and why it mayers 4
5 Key driver to achieve these results: strengthening of the Center of Government Center of Government (CoG): ins8tu8ons of direct support to the Chief Execu8ve (President, Governor, Mayor), responsible for key whole- of- government func8ons (not for service delivery or specific policy areas). One of the key drivers of the improvements in Pernambuco was the strengthening of the capaci8es available at the Center of Government, to ü Set clear priority goals to be achieved; ü Align the budget behind those priori8es; ü Intensively monitor implementa8on and progress; and ü Intervene when obstacles limit performance. 5
6 The CoG is increasingly relevant at na6onal and subna6onal levels of government 6
7 Func6ons of the Center of Government Strategic management Coordina6ng policy Monitoring and improving performance Managing the poli6cs of policies Communica6ng results & accountability Planning the government s key priori8es to ensure coherent, ac8onable and measurable goals Chairing inter- ministerial commiyees for the design and implementa8on of programs in cross- cu`ng issues Monitoring progress in the priori8es and intervening to enable performance and unblock obstacles Leading the poli8cal nego8a8ons with other actors to ensure the approval of the government s plan Producing a coherent narra8ve of the government s ac8ons and achievements, and being accountable to the public Source: Alessandro, Lafuente and San:so (forthcoming) 7
8 Structure of the Center of Government There is no one- size- fits- all structure, but 8 typical units can be iden8fied: i) Units of direct support (poli8cal, administra8ve) to the Chief Execu8ve. ii) Policy advice units. iii) Strategy units. iv) Policy coordina8on units. v) Delivery Units. vi) Communica8ons units. vii) Legal advice units. viii) Budget units. These units can be thought of in concentric circles. 8
9 The Center of Government in concentric circles Source: Alessandro, Lafuente and San:so (forthcoming) 9
10 2. The management model of the state of Pernambuco (Brazil) 10
11 The management model of Pernambuco (2007- today) Governor that took office in 2007 perceived 3 challenges: i) Lack of results in key policy areas: need to improve implementa8on and delivery ii) Lack of coherence across Secretariats: need to ensure a unified direc8on iii) Complexity of leading an administra8on with 30 cabinet- level Secretaries and 36 directors of state companies that reported directly to him The challenges required strengthening the capaci6es at the Center of Goverment His team designed a new management model to address these challenges. The model integrates strategic management (planning and budge8ng) and monitoring and improving performance through new rou8nes and discipline. 11
12 A new ins6tu6onal structure was established A new ins6tu6on (Secretariat of Planning and Management, SEPLAG) was created to lead the model: It is poli8cally empowered by the Governor It has strong technical capaci8es (100 analysts recruited through merit- based processes). Source: Alessandro, Lafuente and Shostak (2014) 12
13 The func6on of Strategic Management in Pernambuco The government defined its Strategic Objec8ves and Priority Goals (within each Objec8ve) with inputs from 3 sources: The electoral plagorm Proposals by the Secretariats Ci8zens proposals gathered in 12 Seminars, one in each of the state s regions. The 2nd edi8on of the seminars (2011) had new dynamics and more par8cipa8on: Fuente: Alessandro, Lafuente y Shostak (2014) 13
14 Strategy Map ( ): government priori6es Vision for the future: Pernambuco, a befer place to live and to work Source: Government of the state of Pernambuco (2012) 12 Strategic Objec6ves: Pact for Educa6on: guarantee quality public educa8on and professional training. Pact for Health: expand the supply of quality public health services. Pact for Life: prevent violence and reduce criminality. Universalize access to water and sanitary sewage. Promote civil society, fight inequality, and support sports, leisure and culture. Improve urban transporta8on and housing. Consolidate development, generate jobs and income, promote an economy of knowledge and innova8on. Improve infrastructure for development World Cup: prepare Pernambuco. Promote environmental sustainability. Promote sustainable rural development. Consolidate effec8ve public management. 14
15 Each Strategic Objec6ve has its own Map Strategic Objec6ve: Consolidate development, generate jobs and income, promote and economy of knowledge and innova8on Priority Goals: (the specific projects that contribute to achieving the objec:ve, each with the agency responsible for it and its budget code) - Implementa8on of a Bio- Tech facility - Promo8ng par8cipa8on in trade fairs - Digital Inclusion Program - Implementa8on of new port facili8es - Job Training Program - Source: Government of the state of Pernambuco (2012) 15
16 Each element of the Strategy Map has its correspondence in the budget Mapa de la Estrategia Presupuesto Source: Alessandro, Lafuente and Shostak (2014) 16
17 The func6on of monitoring and improving performance: monitoring mee6ngs Similari8es with Stat model. Chaired by the Governor 2 mee8ngs per week, each covering one Strategic Obje8ve (the 12 Objec8ves are covered in 6 weeks). All Secretaries and managers that contribute to the Objec8ve ayend the mee8ng and present the data for their priority goals. For goals that present problems, par8cipants discuss possible solu8ons and make decisions, with follow- up in subsequent mee8ngs. U- shaped table Data (and maps/graphs) are displayed on the screens. Minutes with the decisions taken also projected on the screens. Source: SEPLAG 17
18 The func6on of monitoring and improving performance: control panel SEPLAG updates the informa8on on the evolu8on of the priority goals in an online control panel, of internal use (the Governor access it in his tablet). Source: Alessandro, Lafuente and Shostak (2014) 18
19 Certain areas receive an even more intense monitoring Not monitored by SEPLAG (only by the Secretariats) Monitoring mee8ngs every 6 weeks Control panel Weekly (security) or monthly mee8ngs (health, educa8on) Monitoring of outcomes Source: Alessandro, Lafuente and Shostak (2014) Project Management Office Weekly mee8ngs 19
20 Performance Pacts: Security, Health, Educa6on In these areas, the priority goals also include outcomes: Pact for Life: 12% annual reduc8on in the lethal and violent crime rates Pact for Health: 4% annual reduc8on in avoidable mortality rates Pact for Educa6on: 37% increase in student performance in standardized tests by 2014 SEPLAG also assists these Secretariats to improve performance: Performance Management Centers SEPLAG analysts based in each Secretariat (Security, Health, Educa8on). Assist in the implementa8on of the model and in achieving the goals. Needed due to lack of capaci8es at the Secretariats on these methodologies. 20
21 Project Management Office The most important infrastructure projects (in terms of budget and dura8on of the work) receive a more intensive monitoring by SEPLAG s Project Management Office (EGP). EGP has 2 managers and 12 analysts. It currently oversees 72 projects (12 in the planning stage and 60 being implemented). It tracks a much more detailed trajectory for each project (2,000 steps in some cases) and holds weekly mee8ngs with the managers responsible for them to monitor progress and unblock obstacles (i.e., in coordina8on with other agencies). EGP also validates the data presented by the managers through visual inspec8ons and mee8ngs with contractors and auditors. Source: Revista de Gestão Pública PE (2014) 21
22 3. Some lessons learned for other subna8onal governments 22
23 Lessons and opportuni6es for other subna6onal governments 1. The CoG should only focus on the government s top priori6es. 2. CoG ins8tu8ons need both poli6cal empowerment (granted by the Chief Execu8ve) and technical capaci6es. 3. The CoG has a fundamental but subsidiary role, adding value to the sectors withouth seeking the spotlight. 4. Performing the CoG func8ons requires discipline to follow certain rou6nes and processes. 5. Each CoG unit should have a clear mandate, to avoid duplica8ons or gaps. 23
24 Lessons and opportuni6es for other subna6onal governments 6. At least 3 func6ons need to be integrated, as they depend on each other - planningà coordina8ngà monitoring 7. The informa6on collected through monitoring should actually be used to solve problems. 8. Focus on outcomes and impacts, and not just on internal processes. 9. Ins6tu6onaliza6on and sustainability of CoG innova8ons is not easy. 10. Mi8gate the tension between communica6ng results vs poli6cal propaganda 24
25 Improving performance from the Center of Government The case of Pernambuco (Brazil) / 7 th Annual Public Performance Measurement and Repor8ng Conference Rutgers University September 19, 2014
26 IDB s work on the Center of Government Project s website / repository of papers hyp:// the- center- of- government- cog, 9091.html Literature review hyp://publica8ons.iadb.org/handle/11319/5988 The CoG in La8n America and the Caribbean hyp://publica8ons.iadb.org/handle/11319/6003 Chile case study hyp://publica8ons.iadb.org/handle/11319/5965 Pernambuco case study hyp://publica8ons.iadb.org/handle/11319/
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